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Ê Definition: Arunner-up firm in an
industry that is fighting hard to increase
market share
Ê Competitive position:

Market challenger: 30%

  
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3 Mind should be different from leader.

3 Speed.
3 Cut the flab.
3 Be different, stand for SOMETHING.
3 Innovative power.
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3 GThe enemy advances, we retreat.

3 When they camp, we harass.

3 When they are tired, we attack,

3 When they retreat, we pursue´.

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3 Cannot win just by imitating the
leader.

3 Attack the market leader strengths

rather than it¶s weaknesses.

3 Indirectly attacking weaknesses or

gaps in the market coverage.
  

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3 estless

3 No room for complacency

3 Life ???
 
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3 It can attack the market leader

3 It can attack firms of its own sizes

3 It can attack small local & regional firms





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Types of Attack Strategies:
3 Srontal attack
3 Slank attack

3 Encirclement attack

3 Bypass attack

3 Guerrilla attack
 


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3 The challenger has sufficient fire-

power and staying power, and
3 The challenger has clear distinctive
advantage(s)
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3 Attack the enemy at its weak points

or blind spots i.e. its flanks
3 Ideal for challenger who does not
have sufficient resources
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3 Attack the enemy at many fronts at

the same time
3 Ideal for challenger having superior
resources
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3 By diversifying into unrelated

products or markets neglected by the
leader
3 Could overtake the leader by using
new technologies
3 e.g. Pepsi use a bypass attack strategy against by
purchasing orange juice troponica in 1998 which had
almost twice the market share of coca-cola¶s minute maid.
  


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3 By launching small, intermittent hit-

and-run attacks to harass and
destabilize the leader
3 Usually use to precede a stronger
attack
3 e.g. Airlines use short promotions to attack the
national carriers especially when passenger
loads in certain routes are low.
SIGUE 9-10: ATTACK STATEGIES

1-1
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3 A Small market consisting of a individual

or small group of customers with similar
characteristics or needs.

3 It is a process of carving out a small part

of the market whose needs are not
fulfilled.
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3 An ability to segment the market creatively,
focusing activities only on areas where a
company has particular strength that are
especially valued.
3 Efficient use of  & D resources, using them
where they can be most effective.
3 Thinking small: adopting Gsmall is beautiful
approach´. Eg: SONY
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3 Know your self
3 Know your customer
3 Know your competitors
3 Develop a continuous information system
3 Apply differentiation
3 Do not compete in the same market segment
with yourself

contd«
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3 Create your safe heaven.
3 Do not spread too thin.

3 Develop a corporate marketing strategy.

3 Be alert be in control.

3 Do not be static, look for new pastures

continuously.
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SPECIALTIES: SPECIALTIES:

A End-user A Geographic
A Vertical-level A Product feature
A Customer-size A Job-shop
A Specificcustomer A Quality-price
A Product/product line A Service
A Channel
 

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3 A Nicher should identify how a company

can balance a customer vs. competitor
orientation.
3   companies
evaluate what competitors are doing,
then formulate competitive reactions
3  companies focus on
customer developments when
formulating strategy




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3 A mass-marketing company can be
characterized as being centrally led and
bureaucratic.
3 Niche marketing organizations are
decentralized, with several strategic business
units which anticipate decision making
constituting responsiveness and flexibility.
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3 Niche marketing, in contrast to mass
marketing, yields Ggreater profits´. As a
result, the nicher can charge a substantial
markup over costs because of the added
value (Coca-Cola, IBM).
3 Most companies start out as niche marketers
and evolve into mass marketers as their
product life cycles tend to develop into
maturity.
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