Competitive Dynamics - Competitive strategies for market leaders
6 important questions on Competitive Dynamics - Competitive strategies for market leaders
Goals of market leaders:
- Expand total market demand
- Protect current market share
- Increase market share
Two ways to expand total market demand:
- New customers
- More usage
Two ways to protect market share?
- Proactive marketing
- Defensive marketing
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
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Three distinctions between proactive marketing:
- Anticipative marketing; looks ahead to needs customers may have in the near future.
- Creative marketing; discovers solutions customers did not ask for but to which they enthusiastically respond.
- Responsive marketing finds a staded need and fills it in.
Six types of defense strategies:
- Position defense
- Flank defense
- Preemtive defense
- Counteroffensive defense
- Mobile defense
- Contraction defense
Four factors a company should consider before buying a higher market share:
- Possibility of provoking antitrust action
- Economic cost; there exists an optimal market share, after that percentage profitability might fall.
- The danger of pursuing the wrong marketing activities;
- The effect of increased market share on actual and perceived quality.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
