Defensive Marketing Strategies for F. Kotler
Many industries are led by recognized leader companies that hold the largest market share. Such companies usually set an example to competitors, changing the price policy, introducing new products, expanding distribution channels and increasing the intensity of promotional activities. The leader of the market should not lose vigilance, as other companies are constantly trying to challenge his position or cash in on his weakness. The dominant position obliges the firm to conduct active actions on three fronts simultaneously: expansion of the total demand for manufactured products, an attempt to increase its market share and, of course, protection of the existing market share with the help of well-planned defensive and offensive actions.
The principles of defense according to J. Trout and E. Rice differ from the strategies of F. Kotler. According to F. Kotler, the dominant company on the market has the opportunity to use six defensive strategies.
1. Positional defense. The basic principle of any defense is the construction of impregnable fortifications on the borders of its territory.
2. Defending the flanks. Responding to the actions of competitors can be the release of another brand leader, aimed at surpassing the competitive advantage of the pursuer.
3. Proactive defensive actions. If the company does not accept the passive position, it is ahead of the concentrating forces of the opponents and strikes a preemptive blow, thereby violating the plans of each of them.
4. Counterattack. An effective counter-attack method is an invasion of the enemy's main territory. Another common form of counterattack is the economic or political blockade of the competitor. A leader can subsidize a reduction in the prices of some products (usually the most profitable for competitors) when they are raised to other goods, or announce preparations for the production of a new product, so that consumers stop buying from the rival. In addition, the arsenal is still lobbying political decisions that are unprofitable for the competitor.
5. Mobile Protection. The leader extends its boundaries by expanding and diversifying markets. With the expansion of the market, the company shifts attention from a particular product to the needs that satisfy this class of products in general, conducts research work throughout the entire technology chain.
6. Forced reduction. The planned reduction (strategic waste) implies the concentration of resources on promising directions.
Robert Pino's corporate aikido strategy
The corporate Aikido strategy is aimed:
a) to strengthen the company's own power through concentration on development and self-improvement;
b) to neutralize the strengths of the competitor;
c) to subordinate the competitor to their actions.
Marketing strategy based on the principles of aikido, involves the development of a policy that would ensure the protection of their positions and improve the organization of management of the company and improve business processes. In doing so, special principles are used to develop a competitive strategy. The company does not ignore rivals, but not their actions determine the company's strategy.
The aikido strategy demonstrates that the "do it your way" principle is more effective when the company's management has managed to balance the mission, strategy and organization (Spirit, Reason and Body) than with traditional forms of competition. Aikido does not accept either selfishness or heroism. There are also no such concepts as failure and success; there is only a result, and thanks to him we become a little better than before. "
So, in aikido strategy there are no such concepts as failure and success; there is only a result (positive or negative), through which the company becomes more experienced, and therefore stronger. Therefore, the long-term goal of the company can not be the destruction of competitors.
Corporate Aikido assumes a special strategy with an emphasis on avoiding aggressive actions of competitors. Instinctive reactions, for example, the response to the opponent's actions in a similar way, are replaced by more refined techniques that ensure evasion or neutralization. Due to this, it is possible to achieve competitors who adhere to the principles of aikido, mutual benefit.
The corporate Aikido strategy consists of two concepts: attack theory and its underlying factors, and defense theory.
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