What are the competitive strategies? Complete Guide

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What are the competitive strategies? Complete Guide

Competitive Strategies are a part of marketing strategies, where companies make strategies to make a company grow, make their brand grow stronger and make a significant number of the customer base. Competitive strategies can also be coined as SWOT analysis as SWOT is used as a strategy for challenges which a company has to face in the long run and stand out from the crowd. 

What’s in it For Me?

  1. What are the competitive strategies?
  2. Challenging For Market Leaders 
  3. Competitive Strategies
  4.  Example of competitive Marketing Strategies  
  5. Advantages of Competitive marketing strategies
  6. Strategies for High Market-Share Companies
  7. Risk Reduction

1. What is competitive strategy?

A competitive strategy is defined as a long-term plan of any organization for challenging competitive marketing over its other organization after examining the strengths and weaknesses of the market.

The strategy can challenge competitive pressures; different market positions can suggest different market strategies. attract customers and assist in cementing the company’s market position.

Suppose a market is occupied by the share show 50 % is in the hands of a market leader; another 30 % belongs to a market challenger, and 20 % belongs to the market follower.

A market leader has the largest market share in market distribution coverage. Some historical market leaders are Microsoft (computer software), Best Buy (retail electronics), McDonald’s(fast food), and Visa (credit cards).





A defensive strategy aims to reduce the attack of market shares, every interval of time a new item is launched of three to six brands so the market leader must have ready to defend their share of the market.

The defensive strategies can be described as a set of actions being used by the market leader of the organization to protect its market share from its competitors.

Competative Strategy
Competative Strategy

Defensive marketing is depending on the quality of the items where they are applied. if the public purchased products for their quality such as cosmetics, medicine, clothes, etc. then the existing customer will be your customer.

For example:-

Dabur chyawanprash

The quality of Dabur chyawanprash remains constant, so this is the reason behind chyawanprash that it holds a market share in the market.


Cost Leadership Strategy

Cost leadership is a challenging task for an organization to implement because it takes a long-term dedication to sell products at an affordable price.

The challenge is that the organization also has to produce these products at an affordable cost; otherwise, you will lose your profit margin. A large organization that can make their products at low cost and sells them at a concession while still making a profit can drive competitors by consistently sell the products at the lowest cost.

Differentiation Strategy

Identifying an attribute that makes your product or service unique is the driving factor in a differentiation strategy.

If your organization can differentiate its products or services in the minds of the customer, it can hold the market share of the market and higher sales volume in the market, which your organization offers, but your competitors do not.

Cost Focus Strategy

A cost focus strategy is same as a cost leadership strategy, but the major difference is that in a cost focus strategy your organization pic out a very specific part of the market and discount that market the affordable prices, available in the market.

For example, a company that sells mobile phones could target a country that has a high percentage of people where the people want to buy mobile at affordable prices and sell those mobile phones at affordable cost than its competitors, but your competitors do not. The fact that this part of the market is much more likely to buy by a customer.

Differentiation Focus Strategy

Like the cost focus strategy, the differentiation focus strategy targets a very specific part of a market, but rather than offering at affordable prices to the customer in the market, an organization offers unique products that competitors do not offer.


Case Study of MI Smartphone


MI company is the manufacturer and marketer of smartphone and consumer electronic products, including mi band, mi trolly, mi smartwatch, and music players.

The company has achieved a perceptible position in the industry through its competitive strategy, which is at affordable and premium pricing policy. MI has a consistent practice of developing new products and its ability to make a product.

The company also sets premium prices for its products. The company has intention is to offer a good quality product with features and uses at low prices to the market of added value along with maintaining ing profitability.

Case study of Motorola phone

Case study of Motorola phone

MOTOROLA smartphone company is the manufacturer and marketer of smartphone and consumer electronic products and music players.

The company had achieved a percentile position in the industry, but it can’t compete in the market for a long time because the Motorola smartphone company strategy is not a pricing policy.

It did not seem consistent practice of developing new products and its ability to make a product.

The company had no intention to offer a good quality product with features and uses at low prices to the market.

5. Advantages of Competitive Marketing strategies

Before a competitive advantage can be established, it is important to know the:

1.  Useful:

A company must know what its product or service provides. And what they can affect in the market It must offer real cost and cause interest.

2.  Market Aim:

A company must set up who can purchase from their organization and how they can reach their target market.

3.   Competitors:

An organization needs to understand other competitors in the competitive market.

6. Strategies for High Market-Share Companies

Some companies examine the profit and risk associated with their market share may conclude that they had extended themselves in the market or certain sub-markets. Their large share puts them on the top too often or includes too many marginal customers.

These circumstances can lead the company to think about how to reduce its presence in the market.

Share relaxation for the application of general or selective demarketing principles, such as reducing product quality or convenience features.

In a period of shortages in the market, these steps may be especially necessary. Several high market-share companies have slightly used demarketing too.


Companies concluding that their high share is dangerous may want to adopt strategies reducing the risk rather than strategies reducing the share.

We have stated that the optimal market share is a function of both profitability and risk and that any success in reducing the risk surrounding a high share is tantamount to optimizing that share.

Your defensive strategy can require tactics like brand position, improvement in brand features and affordable price, advertising strategies, and sales promotion campaigns. A combination of aggressive marketing tactics and actions will make your defensive.

Frequently Asked Questions

What competitive strategy does Walmart use and why?

Walmart uses the “cost leadership strategy”.If we go back into the time the founder, Sam Walton’s primary motive was to make a high volume of profit by selling goods at a lower price than his competitors. 
Do check out our blog on Walmart case study for more information

What competitive strategy is used by Apple Inc.?

Apple Inc. uses the competitive strategy of innovation and premium pricing policy. The constant development of new products with the most exceptional quality enhances their customer loyalty as well as sets the bar high for its competitors.
A video on Master strategies of Apple

What is Under Armour’s competitive strategy?

Under Armour’s(Sportswear and Apparel) competitive strategy is of differentiation where they stand out among its top competitors, With its secret recipe of innovation.

What competitive strategy does Amazon use?

The core competitive strategy used by Amazon is the cost leadership strategy with which it established itself as the “Top global online Retailer”. 
Check out our blog on Amazon case study

What’s the difference between Competitive Strategies and Organization design?

Competitive Strategies is a long term action plan linked to the comparison between both the company and its rivalry’s SWOT  & Organization design is basically the creation of roles and structure for better knowledge of the organization’s goal. Organization design and competitive strategies are both interdependent processes.

Competitive Strategies
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