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Killer strategies for trouncing the competition.
muganda
#21 Posted : Thursday, January 27, 2011 5:36:00 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Aaah late to the Wazuazu party today... but so informative so far.

@tony stark, maybe Ariel is trying to Unleash overwhelming force but let's see how it ends. On the Nissan/Toyota issue, this is a classic curveball read next post

@Sasha agree good examples; and very good insights from @tony stark
@Intelligentsia he is right - I also know a friend who claims MPesa was stolen from him.

@gathinga thanks for MKESHO input. I wonder to what extent it reflects lack of carry through from MJ's tenure?

@Toshi suspended terror smile

@Ric dess I think this discussion falls squarely on Porters competitive rivalry in the market. Innovation is covered by threat of substitutes but Hardball/Curveballs are competitive rivalry.


@mukiha introduced thus: [i]Winners in business play rough and don't apologize for it. Softball players, by contrast, may look good - report decent earnings and favourable press - but they aren't intensely serious about winning.

So the answer is winning - market share, profit, accolade. The 'killer' here is just a literary device.


ON TO CURVEBALLS...
muganda
#22 Posted : Thursday, January 27, 2011 5:38:04 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
CURVEBALLS
After 2 years, one of the authors of Hardball, feeling misunderstood after his first article which seemed to imply playing dirty or mean - not true - authored Curveballs.

Hardball is getting rough and tough with the competition.
Curveball is a strategy that fools them to do something dumb that they otherwise wouldn't have done; or not to do something smart that they otherwise would have done.

So the recommended curveball strategies:
1. Draw your rival out of the profit zone
When Barclays and SCB were kingpins, SCB starts pursuing efficient banking model to serve up-market shutting down branches everywhere. Barclays follows, without too much thought yet their profits came from the more middle class customer.

2. Let Rivals Misinterpret your Success
Is it fair to say Uchumi misinterpreted Nakumatt's rapid growth? It seemed the answer was mega stores with everything (furniture, wheelbarrows, cars) in them. And go after them Uchumi did buying land everywhere, building bigger prettier warehouse stores, and rounding up all the inventory a household would dream of. But they overlooked the secret, that Nakumat was like a mall - they owned no assets!


3. Employ unfamilar techniques
Classic one is when Zain launched Vuka across network tarrif of 8.00/= for first time in Kenya. Safaricom was so surprised that they launched Mpaka Che - tarrif for prostitutes, crooks, and watchmen - much to the indignation of loyal subscribers.


4. Disguise your Success
Heaven knows why Unilever decided in 1998 to sell its seed crushing plant to a little known Thika firm, run by two brothers and their father, known as Bidco - Who the hell was Bidco? Unilever must have been happy getting rid of this brand, not knowing how successful Bidco had become. In the year prior to this sale, Bidco had expanded its capacity by 500%. And soon it was Elianto, Kimbo, and entire edible oils category of Unilever; before it became hygiene products and margarines under threat!


5. Stick rivals with Unprofitable Customers
For years, Safaricom made about 7% of its money from Postpaid customers. They were few, pickier, with bargaining power, and very demanding. And surprisingly often postpaid customer rued how all promos or campaigns seemed to overlook them.
Many a postpaid account KQ/Coke furiously marched out of Safaricom to the competitor, but heck how much did they change the fortunes of Zain?

mukiha
#23 Posted : Friday, January 28, 2011 8:43:04 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
It is not always desirable to be the market leader... Xerox worked overtime trying to get people to stop calling "photocopying" 'xeroxing"! The habit presents annoying legal issues... can you really claim to own a generic name? Ask Coca-Cola what they think about anyone making this-cola and that-cola [the drink is made from Kola-nut extracts - Coca-Cola invented the spelling with a C ]

Right here at home, market leaders in especially in FMCG have a big problem dealing with counterfeit. Not so long ago some one complained about poor quality TOSS detergent - he was told he must have bought a fake package!

I guess that's why Bidco doesn't want to own a market leader brand: They control over 50% of the cooking fat segment [by my estimation], but none of their brands is a market leader. That way, counterfeiters don't know which one to copy... but Bodco still rakes in the money.

Same can be said about CMC; even though counterfeiting a car is a little more difficult...
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
gathinga
#24 Posted : Friday, January 28, 2011 10:40:55 AM
Rank: Veteran

Joined: 11/30/2006
Posts: 635
Toshi wrote:
Zain vs. Safaricon - real application of Henry Kissinger's "Mad Dog" Theory. Louis IV used the same tact; they've caused a few ripples, they've created suspended terror. Who knows what they'll do next?
@


seems Airtel's strategy is to WIPE OUT ALL COMPETITIVE ADVANTAGES OF SAFCOM. Basically;
(1)redistribute subscriber numbers by pushing for double sim onwership (2)cut of safcom fiancial muscle buy ruthlessly slashing margins so Safcom investment plan in new technologies gets slowed down and so is its ability to pay high wages to staffers (3)cut into subscriber loyaty by branding safcom as the expensive operator.

Airtel must have figured that after wiping out the competitive advantage of their rivals, then everyone in the industry will be on the same footing and the race starts again.

From indicatins, Airtel might just succeed in cutting off the competitive advantages of safcom. But will they win the race when it starts a second time. Orange could as well run with it
Kwanini
#25 Posted : Friday, January 28, 2011 11:14:45 AM
Rank: Member

Joined: 1/28/2009
Posts: 353
Location: Cloud
@muganda, heeeei!! u sound so much like a certain marketing lecturer ? too good.
"For i am the master and the captain of my fate"
amga
#26 Posted : Saturday, January 29, 2011 9:49:30 PM
Rank: Member

Joined: 8/16/2010
Posts: 149
Location: hapa Kenya
Intelligentsia wrote:
"let not this thread die, its very enlightening,again thanks muganda!
tony, its the first time am hearing of the microfinance thingy and safcon and somehow i doubt it"

yes its true how best to try a mass market product than use faulu and DFID which sponsored the entire thing
KenyanLyrics
#27 Posted : Sunday, January 30, 2011 12:55:16 AM
Rank: Veteran

Joined: 4/16/2010
Posts: 906
Location: Nairobi
From my experience, you can run yourself into the ground trying to sabotage the competition. Striving to be the best is much more fun
JkMwatha
#28 Posted : Sunday, January 30, 2011 3:27:50 PM
Rank: Veteran

Joined: 9/11/2007
Posts: 816
'Society' taught me that I have to get a good education and "do something" with my life, so I blindly engage in educational and self development programs and activities, and then sit back and wait for my reward to come.

And so I wait. Then wait some more. When I’m done waiting, I wait a little longer.

What happens? Nothing! Absolutely nothing...... ABK!

Discussion above relates to mainly large organisation..... but let me give it a shot.

I acquire a small business… a bar. Small bar in an area where there are several other bars. Bigger pubs/bars. More established ‘bar & restaurants’.

My small bar does not even have space to set up a kitchen… but I can probably out source food from Kamande's butchery-come-nyama-choma joint nearby.

The bar+sitting area is not exactly spacious… but a few large mirrors seem to do a trick.

Very few customers…. mainly my relas & friends (out of pity)consume 1 or 2 crates on average per day during these tough 'Mututho days'.

What killer strategies could I use to trounce the competition?
erifloss
#29 Posted : Sunday, January 30, 2011 8:06:09 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
What i've come to learn over the years is that the only way of outwitting a competitor is by creating an illusion of 'beneficial partnership' eabl did it to castle, google to yahoo, venture capitalists, goldman sachs on lehmann, US to Iraq & Afghanistan and so many other companies and countries do the same....
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
thuks
#30 Posted : Sunday, January 30, 2011 10:13:16 PM
Rank: Veteran

Joined: 10/8/2008
Posts: 1,575
Why is KTB not using one of this colourful strategies to market Kenya while one of the pharaohs are down ? I wonder what some fellows are paid to dosmile
I care!
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