Strategic Objective
Strategic
Management
The Concept of Market
Position
and
The Strategic Objectives
Objectives
The Concept of Market Position
Philip Kolter
Ries and Trout
The Strategic Objectives
Strategic Thrust
Strategic Objectives
Build
Hold
Niche
Harvest
Divest
The Concept of Market
Position
by Philip Kolter
Market Leader
Market Challenger
The firm has a relatively large share of the market, but a smaller share than the market leader.
Market Follower
The firm which has the largest share in the relevant product market.
The firm holds a market share smaller than the market leader or potential challenger; it prefers to follow rather than to attack.
Market Nicher
A smaller firm which targets segments within segments (or market niches).
The Concept of Market
Position
by Ries and Trout
Defensive
Offensive
The firm is the “second player” in the market; its strategy must be aimed at increasing its market share by taking share from the dominant player and/or smaller player.
Flanking
The firm is the dominant force in the market; its strategy must be aimed at holding its market share, and defending its position. The firm is a smaller player; its strategy must be aimed at increasing its market share by attacking the flanks (points of weaknesses) of its rivals; it should avoid head to head battles with the stronger players.
Guerilla
The firm is a minor player but it can be successful if it looks for small (or specialized) segments of the market which the larger players overlook or avoid.
The Concept of Market
Position: Competitive
Behaviour
Conflict
Competition
Co-existence
Cooperation
Collusion
Strategic Objectives
The results of the environmental analysis and SWOT analysis lead to the strategic objectives. Two types of objective need to be considered: strategic thrust and strategic objectives.
Strategic Objectives:
Strategic Thrust
The strategic thrust defines the future
Management
The Concept of Market
Position
and
The Strategic Objectives
Objectives
The Concept of Market Position
Philip Kolter
Ries and Trout
The Strategic Objectives
Strategic Thrust
Strategic Objectives
Build
Hold
Niche
Harvest
Divest
The Concept of Market
Position
by Philip Kolter
Market Leader
Market Challenger
The firm has a relatively large share of the market, but a smaller share than the market leader.
Market Follower
The firm which has the largest share in the relevant product market.
The firm holds a market share smaller than the market leader or potential challenger; it prefers to follow rather than to attack.
Market Nicher
A smaller firm which targets segments within segments (or market niches).
The Concept of Market
Position
by Ries and Trout
Defensive
Offensive
The firm is the “second player” in the market; its strategy must be aimed at increasing its market share by taking share from the dominant player and/or smaller player.
Flanking
The firm is the dominant force in the market; its strategy must be aimed at holding its market share, and defending its position. The firm is a smaller player; its strategy must be aimed at increasing its market share by attacking the flanks (points of weaknesses) of its rivals; it should avoid head to head battles with the stronger players.
Guerilla
The firm is a minor player but it can be successful if it looks for small (or specialized) segments of the market which the larger players overlook or avoid.
The Concept of Market
Position: Competitive
Behaviour
Conflict
Competition
Co-existence
Cooperation
Collusion
Strategic Objectives
The results of the environmental analysis and SWOT analysis lead to the strategic objectives. Two types of objective need to be considered: strategic thrust and strategic objectives.
Strategic Objectives:
Strategic Thrust
The strategic thrust defines the future