COMPETITIVE ADVANTAGENOTHING BUT BEING DIFFERENT…….

???? WHERE YOUR COMPANY STANDS….

ARE YOU LEADERS……….,

OR FOLLOWER……..

OR CHALLENGER…….

OR NICHER……

DEFENSE STRATEGIESDo not assume the enemy will not come

but be prepared for his coming… Do not presume he will not attack, but instead make your own position

unassailable.”

CONT… This strategy aims at maintaining the

market share the company has already achieved. It does not enhance the firm's competitive advantage but helps fortify the firm competitive position. Normally a defensive strategy should be employed by the market leader due to its market share advantage and position.

OFFENSIVE STRATEGIES These strategies involve obtaining a

advantage over the competitor who is much stronger in all aspects. It normally involves something drastic such as a dramatic price cut, an eye catching commercial, or smash hit new product.

HOW TO OFFENCE

Challenging strategies

Flank

Frontal Attack

Guerrilla

Bypass

Encircle

FLANK ATTACK It is a marketing strategy employed by

firm to capture the market which is not well served by established players. Flank attack targets competitor’s weak spots.

Those companies that engage such strategies aim to capture a market segment that is not well served by the existing competition.

V/S

FRONTAL ATTACK Frontal attack is one of the marketing

strategies inspired by war tactics. Frontal a head on attack on the competitor by matching the competitor in all aspects of marketing mix.

Product Price Place Promotion

HUL/P&G

BYPASS ATTACK The Bypass Attack is the most indirect

marketing strategy adopted by the challenging firm with a view to surpass the competitor by attacking its easier markets.

Rule of three:

Diversify into unrelated product Entry to the new geographical market Leapfrog into the new technology

PEPSI- LIPTON-AQUAFINA- TROPICANA

ENCIRCLE ATTACK Attack the enemy at many fronts at the

same time The Encirclement Attack is a war

strategy adopted by the challenger firm intended to attack the competitor on all the major fronts. Under this strategy, the challenging firm considers both the strengths and weaknesses of the opponent and then launch the attack simultaneously.

GUERILLA ATTACK Basically involves winning small victories

that can over time amount to a large gain in market share.

This strategy involves attack at a small segment; it involves small attacks on the company's such that they don't get the attention, these small victories snowball into a large market share for the company. This is normally used by companies that are smaller in nature fighting the market leaders.