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This module presents the pros and cons of each of these measures that round out a company’s overall strategy.

7.1. Launching Strategic Offensives to improve a company’s market position
Generally, strategic offensives should be grounded in a company’s competitive
assets and strong points and should be aimed at exploiting competitor
weaknesses

Ignoring the need to tie a strategic offensive to a company’s competitive
strengths are like going to war with a popgun-the prospects for success are dim.
For instance, it is foolish for a company with relatively high costs to employ a
price-cutting offensive

Here are the principal offensive strategy options:
1. Offering an equally good or better product at a lower price;
2. Leapfrogging competitors by being the first to market with
next-generation technology or products;
3. Pursuing continuous product innovation to draw sales and market
share away from less innovative rivals;
4. Pursuing disruptive product innovation to create new markets; and
5. Adopting and improving on the good ideas of other companies

These two factors give rise to the five competitive strategy options:

1. A low-cost provider strategy-striving to achieve lower overall costs
than rivals and appealing to a broad spectrum of customers, usually
by underpricing rivals;
2. A focused low-cost strategy-concentrating on a narrow buyer
segment (or market niche) and outcompeting rivals by having lower
costs than rivals and thus being able to serve niche members at a
lower price;
3. A focused differentiation strategy- concentrating on a narrow buyer
segment (or market niche) and outcompeting rivals by offering niche
members customized attributes that meet their tastes and
requirements better than rivals’ product; and
4. A best-cost provider strategy-giving customers more value for the
money by satisfying buyers’ expectations on key
quality/features/performance/service attributes while beating their
price expectations

7.1.2. Choosing which rivals to attack
Offensive-minded firms need to analyze which of their rivals to challenge as well as how to mount that challenge. The best targets for offensive attacks are;
1. Market leaders that are vulnerable-offensive attacks make good sense when a company that leads in terms of size and market share is not a true leader in terms of serving the market well;
2. Runner-up firms with weaknesses in areas where the challenger is strong- they are especially attractive targets when a challenger’s resource strengths and competitive capabilities are well suited to exploiting their weaknesses;
3. Struggling enterprises that are on the verge of going under-challenging a hard-pressed rival in ways that further sap its financial strength and competitive position can hasten its exit from the market; and
4. Small local and regional firms with limited capabilities-because small firms typically have limited expertise and resources, a challenger with broader capabilities is well positioned to raid their biggest and best customers.