Effective Strategies for Runner-up Firms.
Suggested Strategies that should be beneficial especially for Runner-up Firms
Effective Strategies for Runner-up Firms
Offensive strategies to build market share.
Rarely can a runner-up improve its competitive position by imitating the strategy of leading firms? An ordinal rule into this offensive strategy is to avoid attacking a leader head-on. Offensive strategies have many forms.
Some vital forms are indicating here :
Involve into Strategic Encirclement,
Involve in Predatory Strategy,
Engage in the Judo strategy.
Most frequently used is merging with or acquiring to form an enterprise that has greater strength and a large share in the market.
Focus on leader has bypassed or neglected.
The aim is to train the company’s resource strength and capabilities in a specific area.
Superior Product Strategy.
The approach here is to superior product quality or unique attributes.
Distinctive Image Strategy.
To Make stand out from the competitor’s Reputation for charging the lowest prices, superior customer services, designing unique products.
Content Follower Strategy.
Steal customers away from the leaders Prefer defense to offense simply maintain market position. What strategic change the leaders initiating and what we need to do to maintain our present position.
Strategies for Runner-up Firms
Runner-up firms are also called second-tier firms. They have a lesser market share than first-tier industry leaders. Some of them are upcoming market challengers who use offensive strategies in order to gain market share and build a good market position whereas some firms try to improve their cost by concentrating only on serving a small portion of the market.
The combination of turnaround strategies can be used in unpleasant situations where it is essential to quick actions. Similarly, combined actions are taken when new managers are brought in and are freely allowed to make the necessary changes, if the problem is more critical more would be its strategic initiatives.
Thanks for highlighting these strategies, possibly these strategies will be helpful into real situations.
Usman Adamu Bayero says
It’s indeed a helpful one, more wisdom sir.
Thanks you man it helped me