Shivam Challenger

Information about Shivam Challenger

Published on January 26, 2012

Author: shivammehrotra123



Challenger Strategy : Challenger Strategy By:- Shivam Mehrotra ISBE/A/SS Which strategy to use? : Depends on your answer to the following: Is it worth fighting? Are you strong enough to fight? How strong is your defense? Do you have any choice but to fight? Which strategy to use? 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 Market Challenger Strategies (cont’d) : Types of Attack Strategies Frontal attack Flank attack Encirclement attack Bypass attack Guerrilla attack Market Challenger Strategies (cont’d) Frontal Attack : Seldom work unless The challenger has sufficient fire-power (a 3:1 advantage) and staying power, and The 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 Frontal Attack 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. In the 1990s, Yaohan attacked Mitsukoshi and Seibu’s flanks by opening numerous stores in overseas markets Flank attack Encirclement attack : Attack the enemy at many fronts at the same time Ideal for challenger having superior resources e.g. Seiko attacked on fashion, features, user preferences and anything that might interest the consumer Encirclement attack 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 Bypass attack Guerrilla attack : By launching small, intermittent hit-and-run attacks to harass and destabilize the leader Usually use to precede a stronger attack e.g. airlines use short promotions to attack the national carriers especially when passenger loads in certain routes are low Guerrilla attack Slide 10: Thank you

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