Other competitive strategies
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The document discusses strategies for market challengers to overtake market leaders. It notes that Pepsi, Bhaskar Salt, and Samsung have all achieved second place positions behind Coca-Cola, Tata Salt, and Nokia, respectively. The document also mentions that Toyota overtook General Motors to become the largest car maker. It then analyzes the risks and potential rewards of challengers targeting different types of competitors - market leaders, similar sized firms, or smaller firms. Finally, it outlines several strategic attack approaches challengers can take, such as frontal, flank, encirclement, or bypass attacks, as well as guerilla warfare. It concludes by recommending that challengers copy and improve upon existing ideas to earn more
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Other competitive strategies
- 1. By:- Aniruddh Tiwari MS Ramaiah Institute of Management, Bangalore
- 3. Pepsi – Second place after Coke Bhaskar Salt – Second Place after Tata Salt Samsung Mobiles- Second Place after Nokia Toyota over took General Motors in and became the largest car maker of the world
- 4. Market Challengers have high aspirations and low attitude (or is it arrogance……….?) The challenger should decide whom it wants to take on…… ▪ Market Leader – High Risk, High Yields ▪ Firms of Similar Size – Medium Risk, Moderate Yields ▪ Small Firms – Low Risk, High Yields in Long run
- 5. Frontal Attack – Dell India Flank Attack ▪ Geographic – Pepsi in India ▪ Segmental – CloseUP in Gel Based Toothpaste Encirclement Attack – Sony PSP Bypass Attack – Google on Yahoo Guerilla Warfare – Rin On Tide
- 6. INVENT LESS COPY/IMPROVE MORE EARN MORE And Be Happy
- 7. Thank You For Support & Patience
Editor's Notes
- Who was the first Man to land on the moon? Neil ArmstrongWho was the second and third man to land on the moon….? Col. Edwin Aldrin, Charles ConradThis is a common phenomenon, that people remember only those who leads from the front or who has registererd his name first into our minds. We’ll always have a special spot for our first proposal to our GF/BF, but don’t care much abt the second oneThe same phenomenon is applicable with marketing firms also. Companies who come first into the market generally tends to rule the market.
- They are big brands, but are market challangers in their respective segment.Many market challangers give tough competetion to the market leaders, and some times they overtake them.
- Market leaders have stiffness in their spine. They don’t easily bow down to changing market demands.They are not open to criticism.General Motors were reluctant to incorporate new technologies into their portfolio. Toyota came and swept the market with innovative products and strategies.Market leader – 3M-> Xerox-> CannonSmall Firms – Bajaj comes second to Hero Honda. Instead of giving direct competetion it targeted smaller firms like LML Vespa.
- After deciding whom to attack, firms try devise an effective attacking strategyFrontal Attack – Done on the opponent of euivalent size. Attacks are carried on opponent’s product, advertisement, price, distribution etc. Ex:- Dell attacked HP/CompaqFlank attack – Attacking on enemy’s weak spots.Encirclement attack – Attacking from all sides. Attacker has to have sound resources.Bypass attack – avoiding direct assualt on the enemy altogether. Attacker tries to diversify its portfolio in those areas where prsence of the enemy is minimalGuerilla Warfare – Small Attacks on enemies at different point of time.
- Japanese companies do exactly that by adapting products from their western counterparts, improve them and re-introduce them into the market