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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 strategy
Makes 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 Attack
Make 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 Attack
Launching a new product in the market
that is very similar to the opponents to
capture the wide area of market.
Fashion Industry
Bypass Attack
Attack where opponents are not
looking and by finding a new market
segment
Colgate vs P&G
Guerrilla Attacks
Small attacks like:
•Price discount
•Cheaper Goods strategy
Most Important..
INNovation

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Competitive dynamics 2