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9-2 Share maintenance: Primary objective of the early share leader in a growth market Share-growth: Strategies that market challengers use under different conditions

9-3 Gaining share is easier Share gains are worth more Price competition is likely to be less intense Early entry is necessary to maintain technical expertise

9-4 Based on arguments Potential new users can be easily attracted by a new competitor Established competitors are less likely to react aggressively to market-share erosion

9-5 Source: From Analysis for Strategic Market Decisions, 1st edition, by G. S. Day, Reprinted by permission of South-Western, a division of Thomson Learning:: Fax:

9-6 Depends on: Existence of positive network effects Future changes in technology or other key success factors Future competitive structure of the industry Future fragmentation of the market

9-7 When demand exceeds supply: Market exerts little pressure on prices initially When demand may not exceed supply: Penetration strategy is adopted and its initial prices are set relatively low

9-8 Necessary for high-tech industries Critical for staying abreast of technology Experience gained in developing the first generation of products helps in develop next generation of superior products

9-9 Dynamics Increasing number of competitors Fragmentation of market segments Threat of product innovation from within and outside the industry Firm can maintain its current share position in a growth market: If its sales volume continues to grow

9-10 Increase attention to quality control as output expands Continue product modification and improvement Focus advertising on stimulation of selective demand Increase salesforce’s servicing of current accounts Expand postsale service capabilities

9-11 Expand production capacity in advance Improve inventory control and logistics systems Continue to build distribution channels Consider negotiating long-term requirements contracts Consider developing automatic reorder systems

9-12 Develop a product line with appealing features Develop multiple-line extensions Meet or beat lower prices

9-13 Source: P. Kotler and R. Singh Achrol. “Marketing Warfare in the 1980’s,” Journal of Business Strategy, Winter Reprinted with permission.

9-16 Source: P. Kotler and R. Singh Achrol, “Marketing Warfare in the 1980’s,” Journal of Business Strategy, Winter Reprinted with permission.