wazua Thu, Apr 23, 2026
Welcome Guest Search | Active Topics | Log In

5 Pages123>»
Killer strategies for trouncing the competition.
muganda
#1 Posted : Tuesday, January 25, 2011 6:48:47 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
@Sasha @msotoville and other business strategists, noting current wars ongoing in Kenya telecoms, airlines, tobacco and bevarage, you must agree it's worth our time to review some Hardball smile

Hardball players play to win. They focus relentlessly on their competitive advantage to gain an unfair edge. They sometimes hurt their rivals, and risk being hurt themselves to get what they want.

Attack:
1. Devastate rival's profit sanctuaries
KQ knows only 4% of its revenues come from NBI-MSA route. To hurt Fly540 which earns most of its money here, they have cut to the bone.


2. Plagiarize with pride
Novida shamelessly went after Alvaro's malt barley drink.
Or Multichoice after GTV's pay per view model.


3. Deceive the competition
BP Africa PLC announced its intention to sell her shares in Shell BP. Kenya Shell quietly watched, disinterested, until BP Africa reached an agreement then making a preemptive offer.


4. Unleash overwhelming force
Zain got the formula right with the launch of Vuka. But who would have anticipated the overwhelming marketing of Masaa ya Kubamba, followed by Supa Ongea. Vuka died!


5. Raise competitors costs
We know how EABL successfully lobbied government to ensure Keroche drinks were in a category levied a higher tax rate;
Or Mastermind's failed attempt that saw BAT cut rates to ensure they were not paying in a tax bracket alone.

http://hbr.org/products/6549/6549p4.pdf
Hmmmn, that was part 1 of 2. Say something then we can tackle Curveballs.
propertyzote
#2 Posted : Tuesday, January 25, 2011 7:18:04 PM
Rank: Member

Joined: 8/25/2010
Posts: 283
Location: Nairobi
I like!! Very good examples of Killer strategies however, #4 on Zain and Safcom is vise versa don't you think? Kindly add EABL and Castle to #2or #5. EABL went to unprecedented heights to confirm themselves as a "market leader"de-facto monopoly. EABL made sure castle did not acess malt in kenya, a product EABL controls not to mention crude tiring down of Castle billboard adverts.
www.propertyzote.com the ultimate ‘one stop online shop’ of choice connecting more people with more properties at the click of a button
muganda
#3 Posted : Wednesday, January 26, 2011 9:32:35 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
@propertyzote, well said. EABL and Castle debacle and specifically EABL shenanigans with Malt and bottling (Central Glass Industries) was actually a very good case of #5 Raise Competitors Costs

In the literature #4. Unleash massive and overwhelming force they say must be equivalent to a hammer blow: focussed, direct, and swift.
I must credit Zain at the time for direct attacks, though they seem to get overwhelmed by Safaricom's response. According to a first hand account, the problem was always that Safaricom with its might would always respond and club subscribers together, out spend, and out manouvre.

Airtel seems to have landed a good punch with the 'bendover' mess though...

Intelligentsia
#4 Posted : Wednesday, January 26, 2011 11:02:58 AM
Rank: Elder

Joined: 10/1/2009
Posts: 2,436
Hmmm.. excellent topic away from the political shenanigans that rarely add value to our lives! Corporate Strategy interests me to no end, a kinda battle of wits/guerilla warfare in the trenches of the corporate world.

I would gladly like to hear each and every morsel of the full story on the Castle Brewing/EABL,and why some think its foray into Kenya (shs 2.5b then)was actually a decoy and its real interest lay in Tz...either upping its market share or keeping EABL out (am not sure which). But it carries a whiff of #3 above

#4. Interestingly, it is said the idea of sending cash by phone was first reportedly mooted by then Celtel (or is it Kencell), but the proposal got lost in the cracks of their corporate bureaucracy between kenya and their HQ abroad and this time lag made Safcon be aware and latch onto the idea, exploiting it ruthlessly as their own and the MPESA kid, now an adult with his own kid MKESHO, was born. You might have a brilliant idea, but your larger stronger competitor will take it and roll it out as their own and much later you will be hard pressed to explain the idea was your brainchild! Ouch, such pain...execution does matter.

@muganda, for #2 above the global stage is replete with examples where plagiarization (industrial espionnage really) is the buzz word:

1)Tu-144 supersonic jet: This was a Soviet equivalent to the British- French Concorde, whose blueprints were reportedly stolen from the West, who derisivley labelled the Tu-144, the Concordski. It was similar to the original Concorde in almost all aspects! Unfortunately the Tu-144 failed commercially,while its Western cousin was de-commissioned after the Paris aircrash. Wa, yaani even at internl. level simple copy paste can work...

2) Save on R&D costs! Let the competition, esp. those with overflowing R&D kitties, do all the donkey work then take the final product, break it down and find its make-up, then voila! copy paste and sell at cheaper cost. The Indians are good in that, esp. in the pharmaceutical arena and that is why we have so many generics - well, their cost of production was way cheaper than the West's. Ditto their auto industry.

#1. Take on East Africa Industries (later Unilever kenya)?
The idea was suicidal in the 80s/part of 90s. Yet Bidco was small at the time and it's products gradually nibbled at the corporate fat of EAI's cooking fat market, packaging their products in smaller and smaller bags for the urban poor masses esp. in slums.
So they are amonth the first pioneers of the 'kadogo' economy and humbled a corporate Goliath...




petro08
#5 Posted : Wednesday, January 26, 2011 11:11:49 AM
Rank: New-farer

Joined: 9/20/2010
Posts: 90
Location: Nairobi
@muganda

Thanks for this. I like it.

TWENDE KAZI. Weka part two sasa.

You deserve a beer.
muganda
#6 Posted : Wednesday, January 26, 2011 1:32:44 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
@Intelligentsia hot examples. The article says Hardballs isn't just about the moves you make, it's about the attitude you bring to them - you can't feel squeamish about the hard stuff.

Some other good international examples cited include:
- Toyota steady attack of the big 3 moving from compact cars, to mid- and full-size vehicles, and on to Detroit's last remaining profit centres, light trucks and SUVs

- The day after HP announced weak results in 2004 because of price competition in PCs, Dell announced further across-the-board-cut delivering swift kick to a tough rival when it was down

- In 1996, Rubermaind $2b business, a few years earlier ranked as a Fortune most admired company, ventured to contest Wal-Mart's pressure on supplier to lower their prices. Walmart simply cut Rubbermain off. The company was sold off as a struggling enterprise in 1999.

- Ray Kroc who didn't invest McDonald's but simply took ideas from brother Dick and Maurice McDonald when he bought their small chain of bugger joints.



NEXT ON TO CURVEBALLS...
tony stark
#7 Posted : Wednesday, January 26, 2011 2:17:29 PM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
One notable corporate marketing fist fights was the ariel vs omo fight. Started with small attacks by the newcomer and these grew to a full scale smear campaign against each other that gave room for other "gentler detergent" to gain market share. Up to this day ariel which was the upstart newcomer still has has stinging adverts against omo who have "brightened up" and just ignore the adverts. This fight had no winner, no draw and 2 losers!

What i have always been surprised about is the silent coup d'etat by toyota against nissan. This is way before my reasoning ageand i can not comment exhaustively on this but nissans used to be all the rave in the 70s with nissan datsun being the car of choice for any well do do middle class kenyan family. I am not sure when and how toyota took over the market but they are clearly miles ahead of all the competition. Even though the car ahead of you is a toyota the car waaaaaaaayyy ahead of you is a subaru ... gone!
Sasha
#8 Posted : Wednesday, January 26, 2011 2:27:10 PM
Rank: Veteran

Joined: 9/5/2007
Posts: 627
@muganda et al! Wonderful topic again!

Killer strategies are normally more effective where the main competitor has a soft underbelly or jugular! This is the best place to attack so fiercely that they have no doubt about winning. Airtel/Zain thought they had discovered Safcom's underbelly (they may have!!) but the response from Safcom has been emphatic! That is the same thing that happened with Castle. They thought they had introduced higher quality products at cheaper prices. But EABL increased (quantitatively) the barriers to entry i.e. they made it very difficult for Castle to distribute their products forcing Castle to spend huge amounts of money to avail them. In the end, the heat was too much.

Where a competitor adopts a strategy to attack a bigger rival, the strategy has got to be on point! They need to actively adopt a different strategy or business model and aim to compete by changing the rules of the game. GTV thought that by simply offering the same service at a cheaper rate they would push DSTV aside. DSTV responded by offering higher fees for the channels which GTV were forced to match to maintain their market. This ultimately destroyed their cost/revenue structure.

Other Kenyan examples where attack strategies have worked:

- Nakumatt's attack on Uchumi's hypermart. Simple copy and paste and make it better.
- UoN vs KEMU: KEMU has totally changed the rules of PG studies. All other schools are simply trying to catch up with what KEMU has done.
- Dyer & Blair offering to do IPOs for free against other IB's quotes of millions!

tony stark
#9 Posted : Wednesday, January 26, 2011 2:53:00 PM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
MYTHS AND FOLKLORE
@ Intel ... mpesa is an off shoot of a microfinance payment scheme that was being piloted by safcom and faulu and some international ngo in thika. The scheme was a success and the rest is history. Mpesa is not an outstanding idea by safcom or an idea stolen from kencell/celtel.
@sasha .... The eabl vs castle battle has been retolded so many times that the story became how eabl acheived this amazing victory against a huge multinational. eable did make business for castle very difficult but that is not why castle left. Castle was in need of cash so that it could acquire miller in the usa and become the largest brewer. Losing money to eabl would not have augured well for their cash book and bid to acquire miller.
manuPK
#10 Posted : Wednesday, January 26, 2011 3:15:38 PM
Rank: New-farer

Joined: 2/16/2010
Posts: 92
Location: Nairobi
Thanks @Muganda, I'm undertaking a course that has a unit on strategic management and you've actually highlighted an area that I'll look into for my coursework. Cheers
Entrepreneurship is a cognitive bias. They can’t teach it to you.
5 Pages123>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Copyright © 2026 Wazua.co.ke. All Rights Reserved.