Professional Documents
Culture Documents
LAUNCHING A
STRATEGIC
OFFENSIVES TO
IMPROVE A
COMPANY’S
MARKET POSITION
Launching a Strategic Offensives to Improve a
Company’s Market Position
• Rapid growth
Choosing the Basics for Competitive Attack
▫ Grounded strategic offensives
▫ Exploiting competitor’s weaknesses
▫ Ignoring the need to tie a strategic offensive
2. Leapfrogging
6. Using hit and run or “guerilla warfare tactics” to grab sales and
market share from complacent or distracted rivals.
FIRST MOVER,
FAST
FOLLOWER,
LATE MOVER
First Mover
• Pioneering helps build a firm's image and reputation with buyers.
A COMPANY'S
MARKET
POSITION VIA ITS
SCOPE OF
OPERATIONS
Scope of the Firm
Scope of
Operation Via
Vertical
Integration
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Vertical Integration
Forward Integration Partial integration
-distribution -selected stages of
vertical chain
Backward integration
-supply chain Tapered integration
-outsourcing and
Full integration performing the activity
-all stages of vertical internally
chain
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▫ Differentiation
▫ Eliminate dependency from suppliers
▫ Reduced cost
▫ Knows what is selling well
▫ Better quality of products/services
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Outsourcing
Strategies:
Narrowing the
Scope of
Operations
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Outsource
• An activity can be performed better or more cheaply outside.
• The activity is crucial to the firm’s ability to achieve sustainable
competitive advantage
• It improves organizational flexibility
• It reduces the company’s risk of exposure to changing technology
or buyer preferences
• It allows company to concentrate on its core business
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