Timing and Location Tactics

What is a Tactic?

A tactic is a sub strategy and a specific operating plan detailing how a

strategy is to be implemented in terms when and where is to be put
into the action. Tactics are narrower and shorter in terms of scope and
time horizon than the strategies.
 Timing Tactics

When to make a business strategy and the

timing of the application of a business
strategy is very important.
Timing Tactics
 First movers and Late Movers

The first company to manufacture and sell a new

product or service is called the first mover and the
organization which enters the industry
subsequently are late mover organizations. eg.
Parle’s Bisleri is the first mover.
 Advantages of Being First Movers
 They can establish position as the market leader. They can
establish business models and gain valuable experience. This
can help them to attain the cost leadership.

 It results in early commitments to the suppliers, new

technology and the distribution channels.

 It helps them to build an image and reputation and they also

create standards.

 They create the first time customers which are likely to remain
loyal to the company.
 Advantages of Being Late Movers
 Late movers have to face lesser risks as they get the developed
markets .

 Late movers can imitate technological advances, skills and the

marketing approaches very easily.

 Technological change is very rapid. Late movers can jump

technological thresholds and can use the latest technology
available.

 Customer Loyalty is not guaranteed. Late movers can snatch

the market share from the first movers.
Market Location Tactics
 Market Location Tactics
The second important aspect of the business tactics is market
location. This aspect deals with the issue WHERE to compete.
This means the target market of the organization. Every
industry has a number of organizations that offer the same or
the substitute product. The total market share is carved up
these organizations. Market location can be classified
according to the role that organizations play and the type of
tactics they adopt.
Types of Market Location
Tactics

Market
Market Leaders
challengers

Market Followers Market Nichers

Market Leaders

These are the organizations that have the largest

market share in the relevant product market and
usually lead the industry factors such as
technology,product,service,price and distribution
channel. eg. Maruti Suzuki Limited and ICICI Prulife
Insurance are the market leaders.
Market Leaders
 Three Strategies to be the Market Leader

 Expanding the total market through new users, new

uses and more usage.

 Defending the Market Share through position

defense, counteroffensive, mobile defense and
contraction defense.

 Expanding the Market Share through enhancement

of the operational effectiveness.
 Market Challengers

These are the organizations that have the second

or the lower ranking in the industry. These
companies can either challenge or choose to
follow the market leader. When they challenge the
leader they seek to gain the market share. They
have to decide the general attack strategy.
Examples Market Challengers
 Five General Attack Strategies

Frontal Attack involves matching the opponent in every aspect.

Flank Attack involves challenging the opponent’s uncovered segment.

Encirclement Attack involves a grand move to capture the opponent’s market share.

Bypass Attack involves ignoring the opponent and attacking the easier markets by
diversifying into unrelated products.

Guerilla Attack involves small, intermittent attacksto harass and demoralize the opponent
organization.
 Market Followers

These are the organizations that imitate the market

leaders but do not upset the competitive power in
the industry. They prefer to avoid the direct attack,
keep out of the way of the other organizations and
reap the benefits of the innovations made by the
market leaders through imitations.
 Followers may adopt the following strategies

Counterfeiter Strategy involves duplicating the market leader’s product, packaging

and selling.

Cloner Strategy involves emulating the market leaders product.

Imitator Strategy involves copying some things from the market leader while retaining
the others.

Adaptor Strategy involves adapting one’s own products to those of the market leader
and selling them in the different markets.
 Market Nichers

These are the organizations that carve out a

distinct niche that is left uncovered by the other
organizations in the industry or a niche that is of
little or no interest to others. The niche strategies
are akin to focus business strategies as they
target a market position that is small and unique.
Examples of Market Nichers
 Market Nichers adopt the following strategies

Creating Niches, involving looking for ways to

identify and create Niches.

Expanding Niches, involving enhancing the

coverage of present niche.

Protecting Niches, involving shielding the niches

served by the other organizations .