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.

Like 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

Created by Dipanshu Sehjal, IIIT Allahabad

During a Marketing internship under

Prof. Sameer Mathur, IIM Lucknow

(See www.IIMInternship.com)