how should market challengers attack market leaders
TRANSCRIPT
Market challenger
A market challenger is a current non-market leader actively trying to move up within their industry.
Choosing a general attack strategy
Frontal attack
Flank attack
Encirclement attack
Bypass attack
Guerrilla attack
Frontal attack
• Attacker matches its opponent’s product, advertisement, price, and distribution.
EXAMPLE
Flank attack
• Identifying shifts that are causing gaps and filling them
Mercedes flanked Cadillac in US by introducing more expensive cars in the luxury car segment .
Encirclement attack
• When challenger commands superior resources and attacks several fronts
Example: Seiko attacked on fashion, features, and user preferences and anything that might interest the customer
Bypass attack
• Diversifying into unrelated products• Diversifying into new geographical markets• Leapfrogging into new technologies
Pepsi uses bypass strategy against Coke
Guerrilla attack
• Selective price cuts, intense promotional blitzes, occasional legal attacks on opponents