Competition

Porters model-the threat of intense segment rivalry Threat of new entrants Threat of substitute products Threat of buyers bargaining power Threat of suppliers growing bargaining power.

Identifying the competitors

Number of sellers and degree of differentiationmonopoly,oligopoly,monopolistic competition and pure competition. Analyzing competitors-strategies, objectives, strengths and weaknesses

Competitive strategy for market leaders

Expanding the total market-new customers, more usage. Defending the market share-premium performance, extensive and efficient dealership system, superior service ,fullline strategy and good financing. Expanding the market share.

Six types of defense strategies

Position defense- occupying the most desirable market space in the mind of the consumer. Flank defense-market leader erects outposts to protect a weak front or an invasion base for counter attack. Preemptive defense-more aggressive maneuver is to attack before the enemy starts its offence.

 Counter offensive defense-the leader is to invade the attacker s main territory so that they will have to pull back to defend the territory. Mobile defense-leader moves to new territories that can serve as future centers for defense and offense through market broadening and market diversification.

 Contraction defense-planned contraction ie giving up weaker territory and reassigning resources to stronger territories.

Market challenger strategies

They are in second ,third and lower ranks in an industry. It can attack the market leader. It can attack firms of its own size. It can attack small local and regional firms. Different types of attackfrontal attack on product,advertising,price and distribution; the principle of force says that the greater the manpower the side will win.cutting price visa vis the opponent.

 Flank attack-attack on enemys weak points, on the basis of geographic and segmental by identifying the weak spots of the opponents. To serve uncovered market needs. encirclement attack to capture a wide slice of enemy teritory.Bypass attackbypassing the enemy and attacking easer markets, guerrilla warfare-waging small ,intermittent attacks to demoralise the opponent like selective price cuts ,intense promotional .

Market challenger strategies

Choosing a specific attack strategy-price discount, lower price goods, valued priced goods and services, prestige goods, product innovation, product proliferation, distribution innovation, manufacturing cost reduction ,intensive advertising promotion.

Market follower strategies

Counterfeiter-they duplicate the leaders product and package and sell it on the black market. Cloner-emulates the leaders products, name and packaging with slight variation Imitator-copies some things from the leader but maintains differentiation in packaging ,advertising ,pricing or location. Adapter-improves the product of the leader, and sells it in different markets.

 Market nicher strategies-leader in a small market or niche.