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MARKETING MANAGEMENT - Concept Of A Product

There are different strategy stances that firms can adopt - Concept Of A Product

   Posted On :  18.06.2018 02:37 am

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.
 

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. 
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