Competition Strategy for Challenger
Market challengers are companies number two, three and so on in acquiring market share that attacks the market. These challengers are aggressively expanding the percentage of their market share and undermining market leaders. The way to offer products with the same function, the same category in the same market as the market leader. This strategy promises a large share, but also risks and large costs. Market leaders generally react when they get an open attack. He can make special products to destroy competitors, or predator products. The fight is not only product, but price, distribution channel, promotion.
With the science of war parables, market challengers attack with one or a variety of strategies.
• Attack the strong side of the market leader. Attacking the strong side of the market leader requires a lot of energy too.
• Attacking the weak side. Challengers attack the weak side of the market leader. Weakness can be from various sides, product quality, service, price, distribution range, and promotion.
• Guerrilla. The guerrillas carry out small, disjointed and invisible attacks.
The followers referred to here are companies that imitate and modify market leaders. This company is still below the market leader. Followers avoid turmoil. Because it is risky to cause resistance reactions from market leaders who usually have strong resources. Followers have advantages, namely not spending a lot of money, energy and time to research products and introduce products to the market. He just imitates and modifies proven products and markets that have recognized the benefits. Followers can then become challengers.
Examples of followers are LA Light, Star Mild, Class Mild, GG Mild, Black Mild, U Mild who follow A Mild. A Mild controls 50-60 percent of mild cigarettes. Followers do not need to educate the market about the mild cigarette category, because A Mild has done that.