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Introducing new brand into a market - Case Study Example
Author : norwoodbarrows
Pages 12 (3012 words)
To introduce a new brand into a market which is dominated by one company is important to define the role of the firm in the competition, to illustrate the roles that a company may have, I will expose the example of Auchan France as a challenger, Archos France as a runner-up, and Geox Italy as a nicher.
Currently, Auchan has formed an alliance with the telecommunications operator Wind, in Italy, to build the strongest virtual operator, supported physically by Wind to offer telecommunication services as well as attractive promotions and fidelity options to give customers a reason to choose its supermarket over the current leader. This is an example of the "flanker strategy" - the objective of this strategy is to defend an exposed flank, which in business terms, is translated into a weakness in the leader's offering. "a follower may try to capture a leading share in a market segment with a differentiated product where the leader is not strong." (Avlonitis, 2006, p. 49). Attacking a non natural action field will give them an advantage over Carrefour that will require time for them to regain.
Archos France is a company that produces electronic components, specifically those dedicated to multimedia applications. The role of Archos is the one of a company that follows the pace of the technology dictated by other leaders like Apple. ...