Market & Product Strategies

This video is on Market & Product Strategies
Market Position refers to the space captured by an already established organization, product or brand in a market.
Gaining Market Position refers to the tactics and actions through improved customer relationships, innovation, and smart hiring practices that help an organization to maintain, manage and increase its market share.
Methods to Gain Market Position
Steal Share Strategy
The Steal Share Strategy refers to attracting or stealing the customers of your competitors. By offering a good value proposition it is possible to switch customer’s loyalty from a competitor brand to yours.
Example -
1. Burger King using Steal Share Strategy to steal customers from rival brand McDonald’s
Steal Share Strategy - Differentiation Strategy
In the Differentiation Strategy, an organization can lure in customers from the competitors by offering superior quality products, low-cost products, and technologically advanced product
Example -
1. Tesla targeting Toyota’s Prius with Model 3
Steal Share Strategy - Similarity Strategy
In Similarity Strategy an organization offers similar products to the customers who are purchasing from the competitors and try to lure them towards their offerings.
Example
1. Amazon Echo & Google Home
2. Xiaomi’s similar interface to Apple’s
Market Growth Strategy
The Market Growth Strategy refers to targeting new customers through overall category demand
Example
1. Tinder
Market Innovation Strategy
In Market Innovation Strategy the organization targets customers for a completely new and specific product and service category. Also referred to as the Blue Ocean Strategy it puts the onus on uncontested markets for rapid growth and high profits.
Example
1. Netflix
2. iTunes
Cost Leadership Strategy is an effective marketing strategy that helps marketers to establish their organization in the market through competitive advantage.
Cost Leadership Strategy refers to having the lowest cost of operation and producing the lowest-priced goods in the market. It helps the organization to outbid rival brands and gain a large chunk of market share.
What is Cost Leadership Strategy?
- Maximize profits by cutting the costs so that the product prices are industry-average
- Increase market share by cutting the price as this will lower costs and earn decent profits per sale.
Cost Leadership Strategy Features
- Investing available capital in technology to minimize costs
Example - Walmart
- Efficient logistics
Example - Amazon
- Low-cost base strategy to lower cost
Example - Chinese contract manufacturers
Cost Leadership Strategy Risks
- The cost lowering methods can also be used by the competitors.
- The strategy puts a burden on the firm to maintain its position which means reinvestment.
Cost leadership vs. Price Leadership
Cost leadership refers to having the advantage of lower operational costs and Price leadership refers to offering products at the lowest prices.
How to Achieve Cost Leadership?
Economies of Scale
Following a large-scale production method will minimize production costs and this will achieve economies of scale.
Size Advantage
A large size organization produces enormous product quantities and requires raw material in bulk. It can easily bargain for discounts and lower costs.
Technology
Adapting to technological innovation lowers the cost
Focus
Business organizations focused on one product and a specific market share can achieve low costs
Access to raw materials
Having access to raw materials at lower prices automatically cuts down the costs
Efficient operations
Utilizing the available resources, minimizing waste, and automating processes leads to better efficiency and reduced costs
Cost Leadership Strategy Advantages
- Expansion in the market size
- Low financial threats and strengthened business sustainability
- Higher revenues and profit maximization
- Raises barriers of entry for competitors and gains competitive advantage
Cost Leadership Strategy Examples
1. Walmart
2. IKEA
3. McDonald's
This video is on Market & Product Strategies and it has
the following sub-topics.
Time Stamps
0:25 - Gaining Market Position
7:00 - Cost Leadership Strategy
13:40 - Differentiation Strategy
18:56 - Diversification Strategy
25:43 - Defending Market Position
30:38 - Flanking
33:55 - Strategic Alliance
41:55 - Glocalization
46:52 - Competitive Intelligence
53:22 - Barriers to Entry
59:57 - Exit Strategy