Week8 - Strategies depending on market positioning

Question 1

Market Leader Strategies

Answer 1

1. Protect/defend current market share:
   - Constant innovation / quality products.
   - Strong customer relationships.
   - Minimising weaknesses.
   - Maintaining consistent prices that provide value.
   - Creating good service experience.
2. Expand total demand / market share:
   - New users; new uses and more usage.

Question 2

What are the 5 Market Challenger Strategies

Answer 2

1. Flank.
2. Frontal attack.
3. Guerrilla.
4. Bypass.
5. Encircle.

Question 3

1. Flank Strategy - Market Challenger Strategies

Answer 3

Attack leader based on their weaknesses.

Question 4

2. Frontal Attack - Market Challenger Strategies

Answer 4

Attack leader directly by increasing advertising and reducing prices.

Question 5

3. Guerrilla - Market Challenger Strategies

Answer 5

Intermittent attacks by doing things differently to market leaders.

Question 6

4. Bypass - Market Challenger Strategies

Answer 6

Indirect attack on leader by looking into niche markets and increasing market share.

Question 7

5. Encircle - Market Challenger Strategies.

Answer 7

Challenge leader on lots of different areas all at once.

• Combination of flank and frontal attack.
• LT aim to be leader

Question 8

Defensive Strategies for Market Leaders.

Answer 8

1. Position Defence - Allocate max. resources to maintain current brands.
2. Flanking defence - Protect weaknesses (SWOT).
3. Pre-emptive strike - Strike before competitors, have good knowledge of competitors.
4. Counter offensive - Attack comp. weaknesses.
5. Mobile Defence - Broaden into new markets, products, increase market share.
6. Contraction defence - Focusing on strengths, get rid of weak points / products (Dogs).

Question 9

Other competitive Strategies

Answer 9

• Market niche strategy.
• Harvesting strategies (Reducing spending on a product in order to maximise profits, even at the loss of market share.
• Divestment / Deletion. (Seen as negative but may increase competitiveness - Links to contraction defence).