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13-Classification of Firms On Market Share
13-Classification of Firms On Market Share
Leads the other firms in the price changes, new-product introductions, distribution coverage, and promotional intensity. Unless the firm enjoys legal monopoly, it must maintain constant vigilance.
A new product innovation by follower may loose the market share of leader. Leader spends conservatively and challenger spends liberally.
Market Challengers Second, third or lower rank in the industry. Opt for two postures- attack the leader in an aggressive bid for further market share. Or peaceful co-existence. Set high aspiration , leveraging their resources, while market leader runs the business as usual.
Market Nicher
Companies with low shares of total market can be highly profitable through smart niching.
Market nicher knows the target customers so well that it meets their needs better than other firms selling casually. Niche marketer a high price, achieves high margin, whereas the mass marketer achieves high volume.
Six defense strategies of a Market leader Position Defense Flank Defense Pre-emptive Defense Counter offensive defense Mobile defense Contraction Defense 3.Expanding the market share
Attack Strategies
4.Bypass Attack 2.Flank Attack
Company
1.Frontal attack
Guerrilla attack
Competitor
3.Encirclement attack
Market-Nicher Strategies
Three tasks Creating Niches, Expanding Niches and Protecting Niches. Multiple niching preferable to single niching.
A company need to be market oriented ,paying balanced attention to both customers and competitors.
Read: pg 239