Submitted to:- Prof.

Namrata Jain Submitted by:- Shweta Vishwakarma

A strategy is derived from a Greek word strategos , which means generalship related to pursuing those activities which move an organization from its current position to a desired future state. A tactic is a sub- strategy. It is an operating plan detailing how a strategy is to be implemented in terms of when and where it is to be put into action.

Tactics are narrower in their scope and shorter in their time horizon than are strategies.
Here we will be considering two tactics of Timing (when) and Market location (where) used in formulating and implementing business strategies.

The recognition of time as a strategic weapon and a source of strategic advantage came about in the late 1980s as a result of idea proposed by George Stalk Jr. head of innovation and marketing at the Boston Consulting Group. When to make a business strategy is as important as what move to make. Timing of the application of a business strategy becomes important. A business strategy of low cost, differentiation or focus may be essentially a right move, but only if it is made at the right time.

The first company to manufacture and sell a new product or service is called the pioneer or the first mover organization.

For example :- Parle, which was the first mover in the mineral water industry in India that has attracted brands and companies such as Coca Colas Kinley, Pepsi Companys Aquafina etc.

They can establish position as a market leader. They can establish business models and gain valuable experience that can enable them to reap the benefits of the learning curve, that can help them in attaining cost leadership. Moving first in an industry results in an early commitments to suppliers of raw materials, new technology and distribution channels, creating cost advantages over late movers. They develop an image of being a pioneer, which helps build image and reputation. First movers create an standards in different areas for all subsequent products and services in the industry. First time customers are likely to remain loyal.

Being a pioneer is often costly than being a follower. They have to spend resources on creating customer awareness and education for the products. Technological change is often rapid, creating obsolescence for the first movers. Customer loyalty is not guaranteed and can prove to be ephemeral.

The organizations which enter the industry subsequently are late mover organizations and can snatch market share from the first mover. Late movers can overcome advantage of first movers for example:- UTI was the first mover but Kotak Mahindra give stiff challenge to it. For the late movers imitation can be difficult and risky. Late movers face lesser risks when the markets are developed. Late movers can imitate technological advances, skills, know - how and marketing approaches early negating the advantage that first movers are likely to have.

This aspect deals with the issue of where to compete. It means the target market the organization aims at in applying its business strategies. Market location could be classified according to the role that organizations play in the target market and the type of business tactics they adopt to play such a role. Market location tactics could be of four types :1. 2. 3. 4.

Market Leader Market challenger Market follower Market nichers

These are the organizations that have the largest market share in the relevant product market and usually lead the industry in factors such as technological developments, product and service attributes, price benchmarks or distribution channel design. In order to take up the market leader position and to retain it, Kotler proposes these three strategies:Expanding the total market through new users, new uses and more usage. Defending the market share through position defensive actions. Expanding the market share through enhancement of operational effectiveness by means such as new product development raising manufacturing efficiency, improving product quality, providing super support services and increasing marketing expenditures.

1.

2.

3.

These are the organizations that have the second or lower ranking in the industry. These organizations can either challenge the market leader or choose to follow them. The tactics adopted by the market challenger has several components:The challenger has to define the objectives and the opponents. Choose a general attack strategy. Choose a specific attack strategy.

1. 2. 3.

The most common objective of the challenger is increasing the market share.

These are the organizations that imitate the market leaders but do not upset the balance of competitive power in the industry. They prefer to avoid direct attack, keep out of the way of other organizations and reap the benefits of the innovations made by the market leaders through imitation. Four broad approaches are:Counterfeiter strategy Cloner strategy Imitator strategy Adapter strategy

1. 2. 3. 4.

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. They target a market position which is small and unique and require special competencies in order to be served. They excel in providing a special product or service attribute, serving a distinct geographical area or offering a customized product or service to a select group of customers. Market niche strategies carry a risk.

Market nichers can adopt three approaches which are as under:Creating niches - It involves looking for ways and means by which niches can be identified or created in an industry. Expanding niches - It involves enhancing the coverage of present niche to include similar market niches or new niches. Protecting niches - It involves shielding the niches served from attacks by other organizations in the industry.