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Thursday, 21 November 2019

Demystifying frontal attack as business strategy


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


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