Competitive Positioning and Growth Strategies

The essence of competition is the interaction of players with different interests, each trying to improve their position.  In this pursuit, firms engage in competitive initiatives, such as introducing new products, entering new markets, vertically integrating or changing pricing structures.

Any such initiative will draw competitive responses and therefore the possible reactions of competitors, suppliers and distributors must be taken into account in a comprehensive strategic plan. Moreover, competition never stands still and other firms will be exploring new initiatives of their own which need to be anticipated and mitigated.

Most of Open Options’ cases involve some aspect of growth and expansion strategy. As a result, we commonly help our clients develop solutions to issues such as price wars, dealing with powerful distributors/suppliers/customers and anticipating competitive responses.  

Below is a selected list of some of our success stories, in helping our clients manage their competitive positioning issues and growth strategies. Please contact us to learn more about our process and review a relevant case study.

• Growth Strategy – “Finding the right Path” Show more

  A business unit of a major manufacturer needed to grow 10% by making the right investments in four different and complex markets. It could see the challenges but not the path forward. The degree of complexity was daunting and the client had to manage its investments, different markets, regulators and its own corporate parent.

• Product Launch Strategy – “Price it Right” Show more

  A Fortune 500 health care products manufacturer was launching a new segmented product line. The client’s business model was focused on premium priced products.  However, the client’s sales agents would regularly drop prices to match their price with basic-level products. In the Open Options process the client modeled the potential actions and interests of competitors, hospital administrators, sales reps, centralized buying organizations, and physicians.

• Pricing Strategy – “Fire a Warning Shot” Show more

  A utility was looking to anticipate competitive reactions and to create pricing strategies that would halt the loss of customers. They wanted to grow market share without triggering a price war but feared higher commodity prices and price aggression by competitors.

• New technology – “Changing the Industry” Show more

  A natural resource company had developed a new technology, Product X, that would revolutionize its industry. However, 80% market share was held by another firm, who could either work with the Client, or against them. The Client’s industry primarily produces Ingredient Y. The innovation, Product X, allows Customers to save money by using more Ingredient Y in their products. Consequently, all of the Client’s competitors can potentially benefit from Product X. The Client was years ahead of its competition in X tech… but that could change.

• Overseas Growth – “Crouching Tiger, Hidden Opportunity” Show more

  An American manufacturer wanted to establish an export base in China as well as capture the internal Chinese market.  Their business model had been based on premium priced products with value added services.  In this new arena, they faced a complex mix of powerful players including other multi-nationals, Chinese competitors, multinational competitors, a Japanese partner, and the Chinese Government.

• Expansion Strategy – “The Sacrificial Lamb” Show more

  A large telecommunications company was looking to expand its wireless business into several new regional markets.  However, competitive actions had surprised the client in the past and the future seemed uncertain.  The analysis showed a unique opportunity in which the client could sacrifice entering one of its intended markets to preserve high profits in the other new regions.

• Competitive Positioning – “Under Pressure” Show more

  A large consumer packaged goods company was suffering from intensifying competition and a loss of market equilibrium.  The market dynamics were being driven by several factors including the actions of its two main competitors, the increased buying power being exercised by a major retailer, and the increased threat of substitution due to an economic downturn.

• New Revenue Growth – “Rattling The Chain” Show more

  A global entertainment player wanted to achieve significant profitable growth by expanding its presence through organic activities and/or inorganic acquisition. The Client’s management team came to Open Options to understand the implications of various strategies associated with vertical integration.

Open Options has experience in the following aspects of competitive positioning and growth strategies:

• New product introduction
• New disruptive technology management
• Responding to a competitor’s new product
• Market entry
• Pricing and price wars
• Product life cycle issues
• Commoditization
• Grey market issues
• Dealing with State Owned Enterprises
• Dealing with foreign competitors
• Growing your business in China/India and other developing countries
• Rapidly evolving markets
• Dealing with a dominant competitor
• Dealing with a powerful customer
• R&D Planning
• Reviving stalled projects
• How to win a bidding process
• Long term growth strategy