How should market challengers attack market leaders

Market challenger

A market challenger is a current non-market leader actively trying to move up within their industry.

Defining Opponent(s)

Market leader

Firms of same size that are underperforming

Local and regional firm

Choosing a general attack strategy

Frontal attack

Flank attack

Encirclement attack

Bypass attack

Guerrilla attack

Frontal attack

• Attacker matches its opponent’s product, advertisement, price, and distribution.

EXAMPLE

Flank attack

• Identifying shifts that are causing gaps and filling them

Mercedes flanked Cadillac in US by introducing more expensive cars in the luxury car segment .

Encirclement attack

• When challenger commands superior resources and attacks several fronts

Example: Seiko attacked on fashion, features, and user preferences and anything that might interest the customer

Bypass attack

• Diversifying into unrelated products• Diversifying into new geographical markets• Leapfrogging into new technologies

Pepsi uses bypass strategy against Coke

Guerrilla attack

• Selective price cuts, intense promotional blitzes, occasional legal attacks on opponents