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MARKETING DISCUSSION
Pick an industry. Classify firms according to the four different roles they might play: leader,
challenger, follower, or nicher. How would you characterize the nature of competition? Do the firms
follow the principles described in the chapter?
Suggested Response:
Student answers will differ according to the industries picked and the role the firms play in that
industry. All answers should contain some of the following:
Leaders: largest market share, leads on price changes, new-product introductions, distribution
coverage, and promotional intensity. Have products that generally hold a distinctive position in the
minds of the consumers.
Can use strategies that expand the total market demand: (new customers—market-penetration
strategies, new-market segment strategies, geographic-expansion strategies).
More usage (level of quantity or frequency of consumption).
Protect its current market share through good defensive action (position defense, flank defense,
preemptive defense, counteroffensive defense, mobile defense, contraction defense).
Challengers, followers: can attack the leader for increased market share, (challengers), or followers
(“not rock the boat”), through:
Frontal attack.
Encirclement attack.
Flank attack.
Bypass attack.
Guerrilla warfare.
Marketing Excellence: SAMSUNG
1. What are some of Samsung’s greatest competitive strengths?
2. Samsung’s goal of $400 billion in sales by 2020 would bring it to the same level as Walmart.
Is this feasible? Why or why not?
Marketing Excellence: IBM
1. Few companies have had such a long history of ups and downs as IBM. What were some of
the keys to its recent success? Can its plans to solve some of the world’s most challenging
problems succeed? Why or why not?
2. Who are IBM’s biggest competitors today, and what risks do they face with their current
strategy?
