Competitive dynamics 2

Competitive Dynamics

How should market challengers attack market Leaders

Market Challenger Strategies

Defining the Strategic Objective and Opponents Choosing an Effective attack Strategy

Strategy No. 1

Defining the Strategic Objective and Opponents

Attack the market leader

High risk but potentially high-payoff strategyMakes good sense if leader is not serving the market well

Attack firms that are not doing the job and are underfinanced

Market Expansion and Increase in share

Strategy No. 2

Choosing an effective attack strategy

Frontal Attack

Attacker’s matches its opponent’s price, advertising methods, price and distribution. The one which has better and more resources wins the market.

PEPSI vs COKE

Flank AttackMake strategies in such a way that focuses on the weak part of the opponents.Attackers find that weaknesses and attack on the same to acquire more market

HP vs DELL

Encirclement AttackLaunching a new product in the market that is very similar to the opponents to capture the wide area of market.

Fashion Industry

Bypass AttackAttack where opponents are not looking and by finding a new market segment

Colgate vs P&G

Guerrilla AttacksSmall attacks like: •Price discount •Cheaper Goods strategy

Most Important..

INNovation