Offensive Defensive Strategies

OFFENSIVE AND DEFENSIVE STRATEGIES PRESENTED PRESE NTED BY: BY: ROHIT GUPT G UPTA A (13) VRUSHAL JADHAV (15) RAKSHA KHET KHETAN AN (23) LATIKA LA TIKA AGRAWAL (02) SAQIB AZAM QADRI (42) MUKUL SOHONI (52)

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a basis for the firm·s fir m·s long term success? «

 AT T WH A

a basis for value creation?

IS COMP IS COMPETI ETITIV TIVE E ADVANT ADVANTAGE? AGE?

SUSTAINABLE COMPETIT SUSTAINABLE CO MPETITIVE IVE  ADVANTAGE ´

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A good strategist seeks not only to ´win the hill, h ill, but hold on to it.µ Subash Jain Sustaining competitive advantage requires erecting  barriers against the compet competition ition Aakers Aak ers sugges suggeste ted d looking at the followi following: ng: « « « «

How you compete Basis of competition Where you compet compete e Whom you are competing against

EXAMPLES OF SCA ´

For

many years, Singapore Airlines were riding on its SCA of having the best in-flight service

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As more airlines improved their service and narrowed the gap, SIA sought other competitive advantages among which are «

The most modern fleet

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Outstanding Service on the Ground

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A super entertainment system in its cabins

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Comfort in its First Class cabins at an unparallel level

MARKETING WARFARE STRATEGIES 

Offensive Marketing warfare strategies

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Defensive Marketing warfare strategies

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Guerrilla Marketing warfare strategies

OFFENSIVE STRATEGY 

DEFINITION ´

Offensive marketing warfare strategies are designed to obtain an objective, usually market share, from a target competitor.

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Choosing rivals to attack:

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

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To knock out a competing product so as to take-over it·s market share.

Covert offensive strategy 

keep as low a profile as possible while making offensive movesµ

TYPES OF OFFENSIVE STRATEGY ´

FRONTAL

ATTACK

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FLANKING

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ENCIRCLEMENT

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BYPASS

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GUERILLA WARFARE

ATTACK

FRONTAL ATTACK ´

It occurs when the company takes all their forces and face the opponent directly. e.g. IBM

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Types of frontal attack:

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1) pure frontal attack

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2)limited frontal

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3) price based frontal attack

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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.

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Types of flanking attack:

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1) geographical e.g coca-cola

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2) segmented

e.g japanese in us markets

ENCIRCLEMENT ´

The basic idea of encirclement is to force the competitor to protect their product from all sides. E.g Smirnoff Vodka

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Types of encirclement:

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1)Product e.g japanese in us market

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2) market e.g Seiko

BYPASS STRATEGY ´

A bypass attack wins the battle through attacking areas not defended. E.g. ColgatePalmolive

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Types of bypass:

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1)develop new products

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2)diversify into unrelated products e.g Sony

GUERILLA W ARFARE ´

Involves winning small victories that can over time amount to a large gain in market share.

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Example : IBM won law suit against Hitachi

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Implemented by company who are smaller market position

CASE STUDY (OFFENSIVE): BMW

COMPANY PROFILE ´

BMW (Bayerische Motoron worke Aktiengesellschaft) was founded in 1916

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The company produces and markets a varied range of higher end sporty cars, motorcycles and passenger cars

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Operates in 13 countires

BMW¶S PRODUCT OFFENSIVE STRATEGY: ´

In early 2000s, BMW focused on strengthening  its position as market leader in premium segment

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Product offensive strategy ² new launches every 3 months

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Increased R&D expenditure by 53%

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Some of new launches were:

1.

Mini One

2.

Mini Cooper

3.

New BMW 3 series compact

4.

New BMW 7 series

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By 2002, the company overtook Mercedes and stood 2nd in premium segment in US

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Increase in car sales from 671850 units to 805800 units in late 2002

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20% increase in sales

PROMOTIONS: ´

Launched BMWFilms.com, ´the hireµ (film series)

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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

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During the four month core of the promotion, the films were viewed more than 11 million times

DEFENSIVE 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

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FLANK

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MOBILE

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COUNTER ATTACK

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CONTRACTION

POSITION ´

Position defense involves occupying the most desirable market space in the minds of the consumers, making the brand almost secure.

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Example: Pepsi Vs Coca Cola

FLANK ´

Attack the enemy at its weak points or blind spots i.e. its flanks

Example: Mc Donald Vs Burger King 

MOBILE ´

This involves constantly shifting resources and developing new strategies and tactics. Involves shifting focus from the current product to underlying generic need.

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Example:Petroleum companies get involved into oil, coal, nuclear and hydroelectric industries

CONTRACTION ´

Withdraw from the most vulnerable segments and redirect resources to those that are more defendable

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e.g. TATA Group sold its soaps and detergents business units to Unilever in 1993

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).

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Launched relational database technology in 1979.

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In 1983, renamed Oracle.

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Specialises in ERPs, CRMs, SCMs.

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Flagship

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Oracle employs 105,000 people worldwide.

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Oracle had the third-largest software revenue, after Microsoft and IBM.

product the Oracle Database

BACKGROUND OF PEOPLESOFT ´

Founded

in 1987 .

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Specialises in HRMS and CRM software.

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Friendly

merger with smaller rival JD Edwards

RATIONALE BEHIND THE TAKEOVER ´

Eliminate its major competitor.

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Capitalize on the perceived strong brand loyalty.

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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

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Customer Assurance Plan (CAP)