Strategies for Growth Markets

Question 1

Share Leader must accomplish these tasks (2)

Answer 1

1. Retain repeat or replacement business

2. Continue to capture major portion of sales from new customers to the market

Question 2

Challenger strategic objective

Answer 2

build share faster than market growth rate by stealing customers, capturing new customers.

Question 3

Rapidly growing markets attractive because (4)

Answer 3

1. easier to gain share when market growing
   
   2. share gains worth more in a growth than a mature market
   3. price competition less intense
   4. if market grows big, lots of room for winners

Question 4

Share gains work more in growth market? Depends on (4)

Answer 4

1. Existence of positive network effects
2. Future changes in technology or other key success factors
3. Future competitive structure of the industry
4. Future fragmentation of the market

Question 5

Share Maintenance objectives (2)

Answer 5

1. Retain current customers

2. Stimulate selective demand among later adopters

Question 6

Marketing Strategies for Share Maintenance (5)

Answer 6

1. Fortress strategy - Adidas in soccer
   
   2. Flanker strategy - Toyota introducing Lexus and Scion
   3. Confrontation strategy
   4. Market expansion strategy
   5. Contraction strategy

Question 7

Market Strategies for Share Growth (5)

Answer 7

1. Frontal Attack - Netflix vs Blockbuster
   
   2. Leapfrog Strategy - iPhone
   3. Flanking Attack - early Japanese auto in low cost market
   4. Encirclement Attack - Schweppes cream soda, root beer, tonic (anything but coke)
   5. Guerrilla Attack - Groupon partnerships