This chapter looks at designing "winning strategies" for organisations that takes into account; the competitor situation of a market, stages in the organisation's product life cycle and global opportunities & challenges.
Kotler argues; "Competitors in a particular target market will, at any point in time, differ in their objectives and resources, and hence in their strategies."
I have often come across companies that claim they have "maxed out" in their market - I think they mean that they have probably reached the maximum market share level possible. In this case, the objective maybe to maintain this position and defend against competitor attack - not easy but with a well planned strategy, this is achieveable.
Also, many companies are not number one in their market and they look to get to that position - should you attack the number one player or is there a 'softer' target ?
This chapter by Kotler looks at various positions an organisation can take within their market - he actually lists six positions that he has taken from Arthur D Little, a management consultant firm.
Kotler goes onto discuss how a 'market leader', 'market challenger', 'market follower' and 'market nicher' can design their strategy based upon their objectives, resources and competitive strengths.
In summary, Kotler says that a 'market leader' faces three options; i) expand the total market and by retaining the same share position, their business will grow, ii) protect current position by defending off attacks from competitors, and iii) growing market share.
Kotler also covers options fro the other three positions of the organisation.
This chapter is still, I think, very real and relevant for today's marketer - we are all faced with the dynamics of whatever market we are working in. And it is true to say that when I work with an organisation on their strategy, their competitors are also working on theirs - and if they are not, we should adopt the position that they could be.
