tailoring its products or services to exactly match the needs of targeted customers - it starts with a deep down obsession with customer service 3) Product leadership – the company provides superior value by offering a continuous stream of leading- edge products or services Treacy and Wiersema found that leading companies focus on and excel at a single value discipline, while meeting industry standards on the other two Competitive Positions – competitive strategies are based on the roles that firms play in the target market – leader, challenger, follower, or nicher leader – firm with the largest share o leader strategies – find ways to expand total demand (discovering/promoting new uses for the product, OR encourage more usage of products), protect current market share (prevent/fix weaknesses and continuous innovation), expand market share further challenger – runner up firms that are fighting hard to increase their market share (challenge the market leaders in an aggressive bid for more market share OR play along with competitors o full frontal attack – matching a competitor’s product, advertising, price and distribution efforts o indirect attack – attack competitors weaknesses vs. their strengths or concentrate on gaps in the competitors market coverage follower – other runner-up firms that want to hold their share without rocking the boat o learns from leaders mistakes o copy or improve upon leaders products/programs (with much less investment) nicher – firms that serve small segments not being pursued by other firms o often smaller firms w/limited resources o nicher ends up knowing target customer group so well that it meets their needs better than other firms that casually sell to that niche. o The key idea in niching is specialization o Risks Market niche may dry up, or may grow to the point that it attracts larger competitors By developing multiple niches a company increases its chances for survival Balancing Customer and Competitor Orientation Competitor-centred company – is one that spends most of its time tracking competitors moves and market shares and trying to find strategies to counter them Customer-centred company – focuses more on customer developments in designing its strategies Market-centred company – watching both their customers and their competitors Companies can have 4 orientations (See Figure 18.3 on page 617)
1. Product oriented 2. Customer oriented 3. Competitor oriented 4. Market oriented
You've reached the end of your free preview.
Want to read all 9 pages?
- Spring '15