; Chapter _9
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Chapter _9


  • pg 1
									Chapter #9
   Nike
       Market leader early product innovator outsource production spend lots of
        money on marketing
   Puma
       European stylish
   K-Swiss
       Hip image
   Vans
       Niche market Skate boarders
   Sketchers
       Cool younger market
   New Balance
       Older audience endorsed by no one
   Adidas
       Leader in Soccer, recently acquired Reebok
   Starbury One
       Low Price endorsed by Stephan Marbury
   Share Maintenance
     Repeat business from current customers
     Capture new customers

   Share growth
   Growth stage often short (8 years)
Opportunities and risks in a growth
   It is easier to gain share when a market is
   Share gains are worth more in a growth market
    than in a mature market
   Price competition is likely to be less intense
   Early participation in a growth market is
    necessary to make sure that the firm keeps pace
    with the technology
         Gaining Share is Easier
   No established preferences/special needs not
    yet identified
   Established competitors less likely to act
    aggressively as long as their growth rate is
    satisfactory (Dell example)
      Share Gains are worth more
   Can hold share as market grows
   The existence of positive network effects
   Future changes in technology (hd TV v Blue
   Future competitive structure of the industry
   Future competitive structure of the industry
   Future fragmentation of the market
      Early Entry Is Necessary for
          Technical Expertise
Stents 5.3 billion in 2006
Johnson & Johnson 1994
Guidant 1997 (70%)
J&J 2003 (huge demand)
Boston Scientific 2004
  (65% market share)
        Market Leaders (retain current
   Maintaining/Improving satisfaction and loyalty
     Improve Quality
     Selective Product modification
     Better service

   Encouraging/simplifying repeat purchases
       Distribution
   Reducing attractiveness of switching
     Functional barriers to switching
     Compete on Price
    Market Leader (stimulate selective
     demand among later adopters)
   Head-to-head positioning
     Fighter brand
     Match competitor offering (confrontation strategy)
     Strategic withdrawal

   Differentiated Positioning
       Market expansion
          New lines
          New channels
          New messages
    Followers deciding whom to attack
   Attack the market-share leader
       Frontal or Leapfrog
   Attack another follower
   Attack one or more smaller competitors who
    have limited resources
   Avoid direct attacks
       Flanking (Citrus World)

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