OFFENSIVE
OFFENSIVE
AND
AND
DEFENSIVE
DEFENSIVE
STRATEGIES
STRATEGIES
PRESE
PRESENTED BYNTED BY::
ROHIT G
ROHIT GUPTUPTA (13)A (13)
VRUSHAL
VRUSHAL JADHAV JADHAV (15)(15)
RAKSHA
RAKSHA KHETKHETAN AN (23)(23)
LA
LATIKA TIKA AGRAWAL AGRAWAL (02)(02)
SAQIB AZAM QADRI (42)
SAQIB AZAM QADRI (42)
MUKUL SOHONI (52)
WH
WH
A
A
T I
T I
S
S
COMP
COMP
ETI
ETI
TIV
TIV
E ADV
E ADV
ANT
ANT
AGE?
AGE?
«
« a basis for the fira basis for the firm·s long term success?m·s long term success?
«
SUST
SUST
AINABLE CO
AINABLE CO
MPETIT
MPETIT
IVE
IVE
ADVANTAGE
ADVANTAGE
´
´ A good strategist seeks not only to ´win the hA good strategist seeks not only to ´win the hill, but holdill, but hold
on to it.µ
on to it.µ Subash JainSubash Jain
´
´ Sustaining competitive advantage requires erecting Sustaining competitive advantage requires erecting
barriers against the
barriers against the competcompetitionition
´
´ AakAakersers suggessuggesteted looking at the folld looking at the followiowing:ng:
«
« How you competeHow you compete
«
« Basis of competitionBasis of competition
«
« Where you Where you competcompetee
«
EXAMPLES OF SCA
´ For many years, Singapore Airlines were riding on
its SCA of having the best in-flight service
´ As more airlines improved their service
and narrowed the gap, SIA sought other competitive advantages among which are
« The most modern fleet
« Outstanding Service on the Ground
« A super entertainment system in its cabins
MARKETING WARFARE STRATEGIES
Offensive Marketing warfare strategies Defensive Marketing warfare strategies Guerrilla Marketing warfare strategies
O
FF
ENSIVE
STRATEGY
DEFINITION
´ Offensive marketing warfare strategies are
designed to obtain an objective, usually market share, from a target competitor.
OFFENSIVE STRATEGY
According to Sun Tzu ´ There are two strategies
´ Overt offensive strategy
to knock out a business rival so as to take-over his company To knock out a competing product so as to take-over it·s market
share.
Covert offensive strategy
TYPES OF OFFENSIVE STRATEGY
´ FRONTAL ATTACK ´ FLANKING ATTACK ´ ENCIRCLEMENT ´ BYPASS
FRONTAL ATTACK
´ It occurs when the company takes all their
forces and face the opponent directly. e.g. IBM
´ Types of frontal attack: ´ 1) pure frontal attack ´ 2)limited frontal
´ 3) price based frontal attack ´ 4) research and design attack
FLANKING ATTACK
´ It occurs when the company focuses its forces
on the weaker sides of its competitors. E.g Xerox and Canon.
´ Types of flanking attack:
´ 1) geographical e.g coca-cola
ENCIRCLEMENT
´ The basic idea of encirclement is to force the
competitor to protect their product from all sides. E.g Smirnoff Vodka
´ Types of encirclement:
´ 1)Product e.g japanese in us market ´ 2) market e.g Seiko
BYPASS STRATEGY
´ A bypass attack wins the battle through
attacking areas not defended. E.g. Colgate-Palmolive
´ Types of bypass:
´ 1)develop new products
GUERILLA
WARFARE
´ Involves winning small victories that can over
time amount to a large gain in market share.
´ Example : IBM won law suit against Hitachi
´ Implemented by company who are smaller
CASE STUDY (OFFENSIVE):
COMPANY PROFILE
´ BMW (Bayerische Motoron worke
Aktiengesellschaft) was founded in 1916
´ The company produces and markets a varied
range of higher end sporty cars, motorcycles and passenger cars
BM
W¶S PRODUCT OFFENSIVE
STRATEGY:
´ In early 2000s, BMW focused on strengthening
its position as market leader in premium segment
´ Product offensive strategy ² new launches
every 3 months
Some of new launches were:
1. Mini One
2. Mini Cooper
3. New BMW 3 series compact 4. New BMW 7 series
By 2002, the company overtook Mercedes
´ Increase in car sales from 671850 units to
805800 units in late 2002
PROMOTIONS:
´ Launched BMWFilms.com, ´the hireµ (film
series)
´ News of the BMW Films at key Internet
entertainment rumor sites and a radio DJ program in 20 key metro markets.
RESULTS:
´ In 2001, BMW sales increased by 12.5%
compared to 2000
´ During the four month core of the promotion,
the films were viewed more than 11 million times
DE
F
ENSIVE
STRATEGY
DEFENSIVE STRATEGY
´ According to Sun Tzu ´Do not assume that
enemy will not come but be prepared for his coming «
Do not presume he will not attack but instead make your own position unassailableµ
DEFINITION
´ Defensive Marketing Warfare Strategy Are
Designed To Protect A Company·s Market Share, Profitability, Product Positioning, Or Mind Share.
TYPES OF DEFESIVE STRATEGY
« POSITION « FLANK « MOBILE « COUNTER ATTACK « CONTRACTIONPOSITION
´ Position defense involves occupying the most
desirable market space in the minds of the consumers, making the brand almost secure.
FLANK
´ Attack the enemy at its weak points or blind
spots i.e. its flanks
MOBILE
´ This involves constantly shifting resources and
developing new strategies and tactics. Involves shifting focus from the current product to
underlying generic need.
´ Example:Petroleum companies get involved into
CONTRACTION
´ Withdraw from the most vulnerable segments
and redirect resources to those that are more defendable
´ e.g. TATA Group sold its soaps and detergents
COUNTER-ATTACK
´ Responding to competitors· head-on attack by
identifying the attacker·s weakness and then launch a counter attack .
CASE STUDY
( DEFENSIVE):
PEOPLESOFT
ORACLE
¶S BACKGROUND
´ Founded in 1977 as Software Development
Labs (SDL).
´ Launched relational database technology in
1979.
´ In 1983, renamed Oracle.
´ Specialises in ERPs, CRMs, SCMs.
´ Flagship product the Oracle Database
´ Oracle employs 105,000 people worldwide. ´ Oracle had the third-largest software revenue,
BACKGROUND OF PEOPLESOFT
´ Founded in 1987 .
´ Specialises in HRMS and CRM software.
RATIONALE BE
HIND T
HE
TAKEOVER
´ Eliminate its major competitor.
´ Capitalize on the perceived strong brand
loyalty.
´ Launch a new product called FUSION that
will merge best aspects of the PeopleSoft, JD Edwards and Oracle Applications and merge them into a new product suite.
DEFENSE STRATEGIES EMPLOYED
BY PEOPLESOFT
´ Poison Pill
