1. 1

2. 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

3. 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

4. 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

5. 9-5 Source: From Analysis for Strategic Market Decisions, 1st edition, by G. S. Day, 1986. Reprinted by permission of South-Western, a division of Thomson Learning:: www.thomsonrights.com. Fax: 800-730-2215.

6. 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

7. 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

8. 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. 9-9 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

10. 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

11. 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

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

13. 9-13 Source: P. Kotler and R. Singh Achrol. “Marketing Warfare in the 1980’s,” Journal of Business Strategy, Winter 1981. Reprinted with permission.

16. 9-16 Source: P. Kotler and R. Singh Achrol, “Marketing Warfare in the 1980’s,” Journal of Business Strategy, Winter 1981. Reprinted with permission.