Description
It explains different types of market tactics like leader, challenger, follower and nichers.
A tactic is “ A specific operating plan detailing how a strategy is to be implemented in terms of when and where it is put into action. By their nature tactics are narrower in their scope and shorter in time horizon than are strategies” ? Types of tactics
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› Timing (when) › Market Location (where)
?
?
?
? ?
Market leadership by achieving cost leadership through experience curve benefits. Establish early commitments with suppliers of raw materials, new technology and distribution channels. Enjoy good image/prestige as a pioneer. Establish product standards and rules of competition for late movers to follow. Gain lasting lead by preemptive strike. Imitation by late movers difficult and risky. First time users likely to stay loyal.
Costlier and riskier being a pioneer due to expenditure needed to inform, educate and creating awareness about new product. ? Imitation by late movers to overcome firstmover advantage. ? Rapid technological change in growth phase causing obsolescence for first-mover. ? Customer loyalty to first-mover not guaranteed and may prove to be ephemeral.
?
Leader ? Challenger ? Follower ? Nichers
?
?
Market leader
› Expanding the total market.
› Defending the market share.
› Expanding the market share.
?
Market challengers
› Define the objective of opponents.
› Choose a general attack strategy
? ? ? ? ? Frontal attack. Flank attack. Encirclement attack. Bypass attack. Guerilla attack
› Choose a specific attack strategy
?
Market followers
› Counterfeiter strategy. › Cloner strategy.
› Imitator strategy.
› Adapter strategy.
?
Market Nichers
› Creating niches. › Expanding niches. › Protecting Niches.
?
? ? ? ?
Current market not flooded with a particular product. The rate of use of product can be increased significantly. Market share of competitors going down, while total industry sales are going up. Relationship between sales and expenditure very high in recent years. High profits due to increase in economies of scale.
?
? ? ? ? ?
Availability of new sources of reliable, inexpensive and good quality distribution sources. Profitable operations. Current market flooded with company’s product. Sufficient economic and human resources to manage expanded operations. Sufficient production capacity. Rapidly growing industry.
Existing product at maturity stage. ? Competitors offering better quality product at comparable prices. ? Industry in rapid growth stage. ? Strong in-house R&D capability.
?
?
?
? ? ? ? ?
? ? ?
Over stocking of every profitable segment. Signing exclusive agreements with distributors to pre-empt channel access. Enhance buyers switching cost through low cost user training. Enhance the cost of obtaining trail users by low prices of items frequently used. Enhance scale of economies to reduce per unit cost. Prevent imitation through patents and licensing. Restrict the access of outsiders to key resources and skills through secrecy. Exclusive contract with suppliers. Avoid suppliers supplying to competitors. Persuade government to raise barriers like pollution and safety standards, favourable trade policies.
doc_914124377.pptx
It explains different types of market tactics like leader, challenger, follower and nichers.
A tactic is “ A specific operating plan detailing how a strategy is to be implemented in terms of when and where it is put into action. By their nature tactics are narrower in their scope and shorter in time horizon than are strategies” ? Types of tactics
?
› Timing (when) › Market Location (where)
?
?
?
? ?
Market leadership by achieving cost leadership through experience curve benefits. Establish early commitments with suppliers of raw materials, new technology and distribution channels. Enjoy good image/prestige as a pioneer. Establish product standards and rules of competition for late movers to follow. Gain lasting lead by preemptive strike. Imitation by late movers difficult and risky. First time users likely to stay loyal.
Costlier and riskier being a pioneer due to expenditure needed to inform, educate and creating awareness about new product. ? Imitation by late movers to overcome firstmover advantage. ? Rapid technological change in growth phase causing obsolescence for first-mover. ? Customer loyalty to first-mover not guaranteed and may prove to be ephemeral.
?
Leader ? Challenger ? Follower ? Nichers
?
?
Market leader
› Expanding the total market.
› Defending the market share.
› Expanding the market share.
?
Market challengers
› Define the objective of opponents.
› Choose a general attack strategy
? ? ? ? ? Frontal attack. Flank attack. Encirclement attack. Bypass attack. Guerilla attack
› Choose a specific attack strategy
?
Market followers
› Counterfeiter strategy. › Cloner strategy.
› Imitator strategy.
› Adapter strategy.
?
Market Nichers
› Creating niches. › Expanding niches. › Protecting Niches.
?
? ? ? ?
Current market not flooded with a particular product. The rate of use of product can be increased significantly. Market share of competitors going down, while total industry sales are going up. Relationship between sales and expenditure very high in recent years. High profits due to increase in economies of scale.
?
? ? ? ? ?
Availability of new sources of reliable, inexpensive and good quality distribution sources. Profitable operations. Current market flooded with company’s product. Sufficient economic and human resources to manage expanded operations. Sufficient production capacity. Rapidly growing industry.
Existing product at maturity stage. ? Competitors offering better quality product at comparable prices. ? Industry in rapid growth stage. ? Strong in-house R&D capability.
?
?
?
? ? ? ? ?
? ? ?
Over stocking of every profitable segment. Signing exclusive agreements with distributors to pre-empt channel access. Enhance buyers switching cost through low cost user training. Enhance the cost of obtaining trail users by low prices of items frequently used. Enhance scale of economies to reduce per unit cost. Prevent imitation through patents and licensing. Restrict the access of outsiders to key resources and skills through secrecy. Exclusive contract with suppliers. Avoid suppliers supplying to competitors. Persuade government to raise barriers like pollution and safety standards, favourable trade policies.
doc_914124377.pptx