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How Should Market Challengers Attack Market Leaders?
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ATTACK THE MARKET LEADER
ATTACK THE FIRMS OF IT’S OWN SIZE
ATTACK SMALL LOCAL AND REGIONABLE FIRMS
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Attack The Market LeaderHigh risk but potentially high-payoff strategy
Canon Grabbed Large Chunk Of Xerox Market By Introducing Desk Copiers
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Attack The Under Financed Companies Or Local And Small Regional FirmsThese firms have aging products, are charging excessive prices, or are not satisfying customers in other ways
Many Market Challengers have become Market Leaders by Acquisition and Mergers only.
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Choosing A General Attack Strategy
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FRONTAL ATTACKMatching Opponent’s Product , Advertising , Pricing , And Distribution .Modified Frontal Attack Slightly Modifies Strategies From Opponent .
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FLANK ATTACK
To Serve The Uncovered Market NeedsTo Attack At Underperformed Areas Of OpponentTo Fill The Gaps Developed Due To Shifting Market Trends
Ariat’s Boots launched new comfortable shoes to sweep out pre-existing companies
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Launching Grand Offensive Attack On Several Fronts
Sun Microsystems’s Attack On Microsoft
Makes Sense When Challenger Commands Superior Resources
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Diversifying into unrelated products.Bypass Attack
Diversifying into new geographical markets.Leapfrogging into new technologies.
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1997-PEPSI 1998-COCACOLA Pepsi’s Bypass Attack On Coca-Cola In Late 1990’s
Pepsi Purchased Tropicana In 1998 Competing Coca-cola’s Minute Maid
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Google used technological leapfrogging to overtake Yahoo! and become the market leader in search.
Challenger patiently researches and develops the next technology, shifting the battleground to its own territory.
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Guerrilla attacks consist of small and intermittent attacks.
Include price cuts, promotional blitz, and occasional legal action to harass opponent . Can Be Expensive And Must Be Backed By Stronger Attacks.