How Should Market Challengers Attack Market Leaders?

ATTACK THE MARKET LEADER

ATTACK THE FIRMS OF IT’S OWN SIZE

ATTACK SMALL LOCAL AND REGIONABLE FIRMS

Attack The Market LeaderHigh risk but potentially high-payoff strategy

Canon Grabbed Large Chunk Of Xerox Market By Introducing Desk Copiers

Attack The Under Financed Companies Or Local And Small Regional FirmsThese firms have aging products, are charging excessive prices, or are not satisfying customers in other ways

Many Market Challengers have become Market Leaders by Acquisition and Mergers only.

Choosing A General Attack Strategy

FRONTAL ATTACKMatching Opponent’s Product , Advertising , Pricing , And Distribution .Modified Frontal Attack Slightly Modifies Strategies From Opponent .

FLANK ATTACK

To Serve The Uncovered Market NeedsTo Attack At Underperformed Areas Of OpponentTo Fill The Gaps Developed Due To Shifting Market Trends

Ariat’s Boots launched new comfortable shoes to sweep out pre-existing companies

Launching Grand Offensive Attack On Several Fronts

Sun Microsystems’s Attack On Microsoft

Makes Sense When Challenger Commands Superior Resources

Diversifying into unrelated products.Bypass Attack

Diversifying into new geographical markets.Leapfrogging into new technologies.

1997-PEPSI 1998-COCACOLA Pepsi’s Bypass Attack On Coca-Cola In Late 1990’s

Pepsi Purchased Tropicana In 1998 Competing Coca-cola’s Minute Maid

Google used technological leapfrogging to overtake Yahoo! and become the market leader in search.

Challenger patiently researches and develops the next technology, shifting the battleground to its own territory.

Guerrilla attacks consist of small and intermittent attacks.

Include price cuts, promotional blitz, and occasional legal action to harass opponent . Can Be Expensive And Must Be Backed By Stronger Attacks.