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.
Tags : MARKETING MANAGEMENT - Concept Of A Product
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