Competition Strategy for Market Leader

Being a market leader tends to be the center of attention. Competitors observe movements, strengths and weaknesses. Competitors try to beat, imitate the actions of market leaders. Competitors attempt to investigate products, materials, cost components, and marketing methods. At times competitors use weakness and weakness. The strategy of the market leader according to Porter is 3. That is to increase the demand market, maintain the acquisition of market cakes that have been obtained, and increase the percentage of market cakes obtained, or reduce the competition cakes.

Total demand development

The market leader strategy in developing this total demand does not attack competitors, but increases the number of consumers. For example Aqua as a market leader enlarges its consumers by removing gallon products for the housing market. Aqua bottles are usually used for consumers who travel. By issuing a special housing product, the bottled water market is getting bigger. In addition, when a provider of gallon water with a home water distiller made by a local factory appeared, a large bottled water company reacted by creating advertisements that discredited the home water distiller. He doesn’t attack competitors, but attacks other cheaper product categories.

Market leaders can develop market demand by encouraging more new consumers and new benefits from existing products. This is done by promoting more existing goods to new markets or promoting new benefits to old and new markets.

Maintain the share that has been obtained

The total demand development strategy has weaknesses. Strategy can drain energy. The risk, the share that has been obtained can be neglected. That is an entry opportunity for competitors to seize existing shares. Therefore there are market leaders who use defensive strategies.

Indomie has developed a market to the upper class by making premium products. Then Sedaap’s noodle appeared to rival the standard indie. Sedaap Mie offers more onions. Indomie reacts by removing a variety of fried noodles with lots of onions. That’s Indomie’s way to maintain the market share it has.

Attacking Competitors

In an attack strategy, the market leader narrows the competition space. This is done by promoting, controlling raw materials, lowering prices. Can happen, market leaders reduce prices, sell losses. So that competitors do not move. When competitors leave, the market leader raises prices as usual.

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