Assuming that competitors responds to your firm’s new approach to marketing, your strategic agenda at that point should be to select the best battleground for fighting it out with them.
Whether you like it or not, you’ll get to a point where you don’t have any other option than to face your competitors squarely and fight for the survival of your company.
This battleground must be the market segment or dimensions of strategy in which competitors are ill-prepared, least enthusiastic, or most uncomfortable about competing. It could be on cost, inventory or product designs.
The ideal is to find a strategy that competitors are frozen from reacting to given their present circumstances. Their current situation may make some moves very costly for them to follow. Meanwhile, it is cost effective for you.
For example, if a competitor decides to fight with you in the area your products are already known, it will be costly for them because they may resort to price war. At the end of the day, they will loose more because you are well-rooted in that area.
Another key strategic concept is creating a situation of mixed moves or conflicting goals for competitors. This strategy involves finding moves for which retaliation, though effective, would hurt the competitor’s broader position.
For example, when IBM responded to the threat of the minicomputer with its own minicomputer, it derailed it’s large computer position in the market.
So, placing competitors in a situation of conflicting goals can be a very effective strategic approach for attacking established firms that have been successful in their markets.
Small firms and newly entered firms often have very little legacy in the existing strategies in the industry and can reap great rewards from finding strategies that make it difficult for established firms to compete.
If you want to gain more market share, strategically deal with competition, or expand your marketing and sales frontiers, kindly send an email to firstname.lastname@example.org or call 07032681154, or simply chat with me on any social media platform.
Wars are won in the strategy room, not in the marketplace.
Get in touch with us right now.