Home | ARTS | Marketing Management
|
There are different strategy stances that firms can adopt - Concept Of A Product
MARKETING MANAGEMENT - Concept Of A Product
There are different strategy stances that firms can adopt - Concept Of A Product
Posted On :
It is natural for different firms to take different strategy stances as the requirement; situational design of each is different from the other.
There are different strategy stances that firms can adopt
It is natural for different firms to take different strategy stances as the requirement; situational design of each is different from the other. One firm might find it appropriate to have direct confrontation with the market leader; another may find it appropriate to keep aloof for some time from the competition; and the third might may find it relevant to chalk out a strategy of sheer survival. No strategy stance is universally valid. Broadly strategy stances can be classified under three heads-Offensive/ confrontation strategy, Defensive and Niche strategy.
Is the strategy of aggression usually employed by the firm that is not presently the leader, but aspires to leadership position in the industry. It acts as a challenger and the leader is mostly its target. It tries to expand its market share and utilizes all the elements of the marketing mix in attacking the leader.
Is usually employed by the leader who has the compulsion to defend his position against the confrontation of powerful existing competitors or strong new entrants trying to remove the leader from the topmost position. The leader has to maintain constant vigilance and defend its position against the attack of the challengers.
Is usually employed by firms, which neither confronts nor defend it. It cultivates a small market segment for itself with unique products/ services; supported by a unique marketing mix. Small firms with distinctive capabilities adopt this stance. A market niche to be worthwhile must have characteristics such as reasonable size, profit potential and growth potential.
It is natural for different firms to take different strategy stances as the requirement; situational design of each is different from the other. One firm might find it appropriate to have direct confrontation with the market leader; another may find it appropriate to keep aloof for some time from the competition; and the third might may find it relevant to chalk out a strategy of sheer survival. No strategy stance is universally valid. Broadly strategy stances can be classified under three heads-Offensive/ confrontation strategy, Defensive and Niche strategy.
Offensive Strategy
Is the strategy of aggression usually employed by the firm that is not presently the leader, but aspires to leadership position in the industry. It acts as a challenger and the leader is mostly its target. It tries to expand its market share and utilizes all the elements of the marketing mix in attacking the leader.
Defensive Strategy
Is usually employed by the leader who has the compulsion to defend his position against the confrontation of powerful existing competitors or strong new entrants trying to remove the leader from the topmost position. The leader has to maintain constant vigilance and defend its position against the attack of the challengers.
Niche Strategy
Is usually employed by firms, which neither confronts nor defend it. It cultivates a small market segment for itself with unique products/ services; supported by a unique marketing mix. Small firms with distinctive capabilities adopt this stance. A market niche to be worthwhile must have characteristics such as reasonable size, profit potential and growth potential.
Tags : MARKETING MANAGEMENT - Concept Of A Product
Last 30 days 297 views
