Strategies Based on a Companys Market Position

Market Leaders
Stay-on-the-offensive Strategy
A type of corporate strategy that consists of actively trying to pursue changes within the industry. Companies that are managed as offensive competitive generally invest heavily in technology and Research and Development (R&D) in an effort to stay ahead of the competition.

Fortify-and-Defend Strategy
Protect Market share. Make it harder for challengers to gain ground and for new firms to enter.

Muscle-Flexing Strategy
Dominant leader plays a competitive hardball when smaller rivals rock the boat with price cuts or mount any new market offensives that directly threaten its position.

Runner-up Firms- Types

Market challengers
Leapfrog attack: indirect assault, avoid enemy; attack easier markets Flanking maneuver: concentration against weakness Frontal attack: head-on attack. Attacker matches opponent along all parts of MM Encirclement attack : attacker offers everything leader offers & more Guerilla attacks: harassing & demoralizing opponent , excellent for small companies

Followers
Cloner (emulator) Imitator Adapter

QUESTIONS
Q. Market leadership is the position of a company with the ________in a given market for goods and services. A. Largest market share B. Highest profitability margin C. A & B D. A or B

Q. Market leadership is the position of a company with the ________in a given market for goods and services. A. Largest market share B. Highest profitability margin C. A & B D. A or B

Q. Which of these is a market leader strategy? A. Flanking maneuver B. Muscle-flexing strategy C. Leapfrog attack D. A and B E. A and C

Q. Which of these is a market leader strategy? A. Flanking maneuver B. Muscle-flexing strategy C. Leapfrog attack D. A and B E. A and C

Q. Which of these is not a market challenger strategy? A. Frontal attack B. Fortify-and-defend strategy C. Encirclement attack D. A and B

Q. Which of these is not a market challenger strategy? A. Frontal attack B. Fortify-and-defend strategy C. Encirclement attack D. A and B

Q. Followers prefer to challenge rather than staying parallel to the market leader. a. True b. False c. Depends on the product/service d. Depends on the stage in the product life cycle.

Q. Followers prefer to challenge rather than staying parallel to the market leader. a. True b. False c. Depends on the product/service d. Depends on the stage in the product life cycle.

Q. Patenting, keeping prices competitive, providing higher level of services, signing exclusive contracts with best suppliers and distributers are a part of which strategy? a. Encirclement attack b. Fortify-and-Defend Strategy c. Muscle-Flexing Strategy d. Guerilla attacks

Q. Patenting, keeping prices competitive, providing higher level of services, signing exclusive contracts with best suppliers and distributers are a part of which strategy? a. Encirclement attack b. Fortify-and-Defend Strategy c. Muscle-Flexing Strategy d. Guerilla attacks