Military history is replete with sensational
frontal attacks of armies led by brilliant commanders. The epic battle fought
between Alexander the Great and Darius II of Persian Empire is indeed a
startling example of frontal attack where Darius II fled the battle field
leaving his army leaderless. In business strategy too, frontal attack is
treated more with mystique and mystery.
As in war, a frontal attack involves pitting a
challenger against the market leader who is not only strong but has the
capacity to withstand and mount counter attack that can devastate the attacking
firm. Because the point of attack is the strength of the leader and not his
weakness, challenging firm runs a high risk profile between phenomenal success to
total destruction in the market place.
Before undertaking frontal attack business strategy,
firm must evaluate its power equation and the amount of resources in men,
material and money it can marshal to carry out its attack. An absolute
advantage can arise either from quantitative strength or more importantly in
qualitative one up-man ship.
Secondly, challenging firm must appraise its edge over
the leader on the basis of product, pricing and promotion arising from the use
of innovative technology. A superior product at lower cost and heavily promoted
can take daylight out of the leader. Once again I must repeat that a leader is
not going to hang his boots. It is a fight between the best against the best
where the competition is watched eye-ball to eye-ball the leader will resort to
every business tactics to cut through challenger’s frontal attack business
strategy.
Challengers mounting frontal attack can either have
track experience and market following in the same product or previously unknown
in this line.
Perennial frontal attacks take place between giants
like Coca cola and Pepsi cola. For example when Coca cola introduced Diet Coke,
Pepsi responded with Diet Pepsi to neutralize frontal attack. In the smartphone
market Apple brought out iPhone and had remarkable success. Samsung came with surprisingly
low cost but much more techy alternative of Galaxy amounting to a successful
frontal attack.
Frontal attack by McDonald in taking on established
coffee houses was a classic example where a company that was not previously known
for coffee marketing challenging the leader in that segment, Starbucks. McDonald
is a fat-food restaurateur and McCafe was one of the products served therein. But
there were two tweaks in its business strategy: Firstly mode of distribution is
drive thru and not the coffee house. Secondly McDonald marketed premium coffee
at lower price. That was a massive assault!
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business
Strategist
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