Respond to the following:
Attack, Follow or Create a Niche Collapse
Total views: 3 (Your views: 1). My most recent purchase was based on habit. I bought the usual brand that I buy because of its ability to meet and exceed my expectations.
To gain some to the target customer base a market challenger must first define the strategic objective and opponent(s). Once choice is to attack the market leader at great risk but high reward if successful. A challenger can also set their sights on companies of similar size that are not satisfying the consumer or lastly overtake smaller firms.
The next step would be to choose an attack strategy.
A general attack strategy. The attack options will be to match the attacker's product (frontal attack), fill gaps that have been developed (flank attack), launch a grad offense on several fronts (encirclement attack), create new products that are diversified into new geographical markets (bypass attack), and intermittent attacks that harasses the opponent to eventually secure permanent footholds (guerrilla attacks). A challenger should combine several, more specific, strategies to improve its position over time. How they go about the attack determines how successful the attacks will be in putting their product into the hands of the target customer.
If an attack is not an option then a firm can choose to follow or create a niche.
A market follower strategy. A follower earns less than a leader, usually not a rewarding path at all. However the stability of the product is there because the advantages to the target market is to bring location, services, and financing while keeping costs low and quality/services high.
A market niche strategy. A company can be a leader in a small market by offering high value, charging premium prices, maintaining lower manufacturing costs which create a strong corporate culture and vision. Market-nichers must continuously create new ones to avoid weakening due to be attacked or the niche drying up.
Glitz can catch the eye of the consumer but it's not enough for the market challenger to gain control of the market. The performance of the product ultimately will be the deciding factor of catching up to or passing the market leader.
In order to attack a category leader it is important to offer a product with a discernible difference. This might be in price, quality, or features. As the poster notes, often products are purchased based on habit. A new product must gain the attention of consumers to break their attention. To do this, a comprehensive attack strategy must be formed. This involves study ...
This solution discusses different attack strategies to gain share of market.