The market leader represents the most dominant form of market interferes in a specific
market industry. Usually, there is in one industry one firm that interacts as the market
leader. It is characterized by having the largest market share. Furthermore, the market
leader determines pace and bases of competition as for example the pricing or advertising
intensity and last its ability to create a benchmark which means that it then influences the
activities of other companies (Wilson and Gilligan, (2006)). For example the sports brand
NIKE is the market leader in the sports industry in the USA but also operating strongly on a
global basis due to an enormous potential purchasing power worldwide. However, regarding
the European market, ADIDAS dominates the sports industry market (Smit, 2006).
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Inhaltsverzeichnis (Table of Contents)
- Market Competitive Positioning
- Market Leader
- Market Challenger
- Market Follower
- Market Nicher
- Exit Strategies
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment explores various competitive positioning strategies for companies within a market, focusing specifically on the sports industry. The text examines the characteristics and key strategies of different market positions, including market leaders, challengers, followers, and nichers. It also explores the importance of exit strategies and outlines potential approaches for withdrawing from a market.
- Market competitive positioning strategies
- Key strategies for different market positions
- The importance of exit strategies
- Methods for withdrawing from a market
- Examples from the sports industry
Zusammenfassung der Kapitel (Chapter Summaries)
- Market Leader: This section defines the role of market leaders and explores three key strategies for achieving and maintaining their dominant position: expanding the overall market, guarding existing market share, and expanding market share. Examples of market leaders such as NIKE and ADIDAS are used to illustrate these strategies.
- Market Challenger: This section discusses the characteristics and strategies of market challengers, companies aiming to gain more market share and potentially dethrone the leader. The text examines different approaches to challenging the leader, including frontal attacks, flank attacks, and bypass attacks, with examples such as ADIDAS challenging NIKE and Nike challenging ADIDAS in different markets.
- Market Follower: This section defines market followers, companies that choose to follow the leader rather than challenge them, adopting a less aggressive strategy to maintain a status quo. The text explores different strategies market followers can employ, including close following, following at a distance, and selective following, with examples such as FILA and UMBRO in the sports industry.
- Market Nicher: This section introduces market nichers, companies that find and occupy specific market niches untouched by major competitors, often focusing on specialized products or target groups. The text highlights the advantages of niching, such as avoiding direct competition and potential market growth, with examples such as Quiksilver and Billabong in the surf market.
Schlüsselwörter (Keywords)
This document explores key concepts and strategies related to market competitive positioning, including market leaders, challengers, followers, and nichers. It examines the importance of exit strategies in business and analyzes various methods for withdrawing from a market. Specific examples from the sports industry, such as NIKE, ADIDAS, FILA, and Quiksilver, are used to illustrate different competitive strategies and market dynamics.
- Quote paper
- Christian Berger (Author), 2008, The 4 types of market competitive positioning and its key strategies, Munich, GRIN Verlag, https://www.grin.com/document/118064
