CPRMP111

GOOD MORNING JVIMS

Prepared By:-

Mehta Chandni

Vasoya Piyush

Kamani Peri

Parekh Ronak

Guided By:-

Dr. Ajay Shah

COMPETITIVE STRATEGIES OF

DIFFERENT PLAYERS IN MARKET

INTRODUCTIONHaving a competitive advantage is

necessary for a firm to compete in the market

What is Competitive Advantages?

A competitive advantage is an advantage

over competitors gained by offering

consumers greater value, either by means of

lower prices or by providing greater benefits

and service that justifies higher prices.

But what is more important is whether

the competitive advantage is

sustainable

A firm must identify its position relative

to the competition in the market

By knowing if it is a leader, challenger,

follower or nicher, it can adopt

appropriate strategies to compete

COMPETITIVE ADVANTAGE

Definition:

Competitive strategy is about being

different. It means purposely choosing to

perform activities differently or to

perform different activities than rivals to

deliver a unique mix of value.” --

Michael Porter

FOR EXAMPLE:-Competitive advantage of Maruti Suzuki is the well known brands.In addition the company has increased the lead by expanding its distribution networksLow cost leadership

CORE COMPETENCY

Definition : A core competency is a specific factor that a business sees as being central to the way it, or its employees, works.

CHARACTERISTICS

It is a source of competitive advantage in

that it makes a significant contribution to

perceived consumer benefits.

It has application in a wide variety of market.

It is difficult for competitors to copy.

COMPETITOR ANALYSIS

Identifying the

Company’s competitor

Assessing competitors’

objectives, strategies, strength and

weakness, & reaction patterns

Selecting which

competitor to attack or

avoid

IDENTIFYING COMPETITORS It would seem a simple task for a

company to identify its competitors.

STRATEGIES A group of firms following the same

strategy in a given target market is called a strategic group.

What competitor seeking for? Duration .Dependency .

Strengths and weakness

SELECTING COMPETITORS1. Strong vs. weak

Strong Weak

2.Close vs. Distant

Close Distant

GOOD V/S BAD:-

STRATEGIES FOR MARKET PLAYERS

MARKET LEADER

EXAMPLE OF MARKET LEADER

STRATEGIES FOR MARKET LEADERS

Market Leader’s objectives:Expand the total market by

Finding new usersCreating new uses, andEncouraging more usage

Protect its current market share byAdopting defense strategies (see

following slides) Increase its market share

Note the relationship between market share and profitability

DEFENSE STRATEGY A market leader should generally adopt a

defense strategy Six commonly used defense strategies

Position DefenseMobile DefenseFlanking DefenseContraction DefensePre-emptive DefenseCounter-Offensive Defense

SIX TYPES OF DEFENSE STRATEGIES

1. Position Defense

Least successful of the defense strategies

Position defence involves building superior

brand power and making the brand almost

impregnable.e.g. Nascafe has defence its position against several attacking brand using this strategy. .

2. Flanking Defense:

Secondary markets (flanks) are the weaker

areas and prone to being attacked

Pay attention to the flanks

e.g. San Miguel introduced a flanking brand

in the Philippines, Gold Eagle, as a defense

against APB’s Beerhausen

3. Pre-emptive Defense

Detect potential attacks and attack the

enemies first

Let it be known how it will retaliate

Product or brand proliferation is a form of

pre-emptive defense

e.g. State bank of India

4. Counter-Offensive Defense

Responding to competitors’ head-on attack

by identifying the attacker’s weakness and

then launch a counter attack

e.g. Toyota launched the Lexus to respond to Mercedes attack

5. Mobile Defense

By market broadening and diversificationFor marketing broadening, there is a need toRedefine the business (principle of

objective), andFocus efforts on the competition (the

principle of mass)e.g. the “petroleum” company like reliance sought to recast themselves as “energy” company

6. Contraction Defense

Withdraw from the most vulnerable

segments and redirect resources to those

that are more defendable By planned contraction or strategic

withdrawal

e.g. India’s TATA Group sold its soaps and detergents business units to Unilever in 1993

Market Challenger

EXAMPLE OF MARKET CHALLENGER

MARKET CHALLENGER STRATEGIES

The market challengers’ strategic objective is

to gain market share and to become the leader

eventually

How?

By attacking the market leader

By attacking other firms of the same size

By attacking smaller firms

MARKET CHALLENGER STRATEGIES (CONT’D)

Types of Attack Strategies Frontal attack

Flank attack

Encirclement attack

Bypass attack

Guerrilla attack

1. FRONTAL ATTACK The attractor target on the positive aspect

andThe challenger has clear distinctive

advantage(s)

e.g. Japanese and Korean firms launched

frontal attacks in various ASPAC countries

through quality, price and low cost

2. FLANK ATTACK Attack the enemy at its weak points or

blind spots i.e. its flanks

Ideal for challenger who does not have

sufficient resources

e.g.SBI and ICICI

3. ENCIRCLEMENT ATTACK Attack the enemy at many fronts at the

same time Ideal for challenger having superior

resources

4.BYPASS ATTACK By diversifying into unrelated products or

markets neglected by the leader Could overtake the leader by using new

technologies e.g. Pepsi use a bypass attack strategy against Coke in China by locating its bottling plants in the interior provinces

5.GUERRILLA ATTACK

By launching small, intermittent hit-and-

run attacks to harass and destabilize the

leader Usually use to precede a stronger attack

WHICH ATTACK STRATEGY SHOULD A CHALLENGER CHOOSE?

Use a combination of several strategies to improve market share over time

Market follower

EXAMPLE OF MARKET-FOLLOWERS

MARKET-FOLLOWER STRATEGIES (CONT’D)

Each follower tries to bring distinctive advantages to its target market--location, services, financing

TYPES OF MARKET-FOLLOWERS

Counterfeiter

Cloner

Imitator

Adapter

Market Nicher

EXAMPLE OF MARKET-NICHER

MARKET-NICHER STRATEGIES

Smaller firms can avoid larger firms by

targeting smaller markets or niches that

are of little or no interest to the larger

firms.

MARKET-NICHER STRATEGIES (CONT’D)

Nichers must create niches, expand the

niches and protect them

What is the major risk faced by nichers?

Market niche may be attacked by larger

firms once they notice the niches are

successful

MULTIPLE NICHING

“[A] firm should `stick to its niching’ but

not necessarily to its niche. That is why

multiple niching is preferable to single

niching. By developing strength in two or

more niches the company increases its

chances for survival.”-Philip

Kotler

CASE STUDY ON

DIFFERENT PLAYERS

STRATEGY IN MARKET

MARKET SHARES OF NOKIA AND OTHER CELLULAR PHONE INDUSTRY

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CASE STUDY ON MOBILE INDUSTRY

1.Market leader (NOKIA)

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VISIONVoice goes mobile……if it can go mobile……it will.

MISSIONConnecting people

STRATEGY OF NOKIA

Nokia’s market share in India

Mobile Microfinance

India not a low-end market segment

Nokia’s strong distribution in India

India’s Most Trusted Brand

CASE STUDY ON MOBILE INDUSTRY

2. Market Challenger (SAMSUNG)

STRATEGY OF SAMSUNG

Samsung lacked experience in consumer marketing and focused mainly on production and market shares.

Wide distribution network covering most of the world.

Low cost price

High camera resolution

3. Market Follower (LG)

CASE STUDY ON MOBILE INDUSTRY

STRATEGY OF LG

LG is a leading player in consumer electronics.

High technology innovation

understands consumer electronic market and competitor.

Large distribution channel

4. Market Nicher (MICROMAX)

CASE STUDY ON MOBILE INDUSTRY

STRATEGY OF MICROMAX

Newly introduce product

Many feature at affordable price

Durability

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TIME FOR ASKING QUESTIONS…?????