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Raiding Strategies

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Aravind Muthu
Aravind Muthu

the raiding strategies is followed to avoid competition head on and how to capture the market share, which has been neglected and ignored by the major players

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Raiding strategies A case of Interski, Telco vs. AT&T and Holiday autos
INTRODUCTION Companies pursuing these strategies use their small size advantage, by seeking weak spots that are unattractive to larger companies. Those following raiding strategies look for niche markets in two areas first they can identify products that are not being provided either properly or even at all by the market leaders. second they can identify individual customers who for some reason are not being serviced to their satisfaction.
AIM OF ATTACK A Head to head logistics strategy looks for temporary possession of customers whose needs are not being met While a raiding logistics looks for permanent possession of the market.
INTERSKI A UK company based in Nottingham specializing in providing skiing holidays. Opted for a raiding strategy whereby it concentrates on one small part of the market organized school trips. Schools obviously have very specialized needs, such as additional safety and security, extra instructional facilities, organized transport and appropriate evening activities. Though some competitors exist even in this market it has still segmented itself in focusing in one small geographic patch in northern Italy. RESULTS: The company is experiencing amazing growth rates, year on year that would envy most others in the travel industry, because of their raiding strategies.
Raiding Strategies
TELCO VS AT&T Market leader in the telephone industry in US for sometime. Tenth biggest company in the country in terms of revenue. POLICY: To qualify for AT&T`s discount schemes, customers had to be frequent users of long distance calls, which means millions of American's who were infrequent users were ignored by the company ENTRY OF TELCO COMMUNICATIONS GROUP They buy long distance calls in bulk from AT&T and then act as a wholesaler, reselling the calls to consumers at reduced rates. Telco grew sales by 99 % in 1996. they were called as Dial- arounds AT&T Reaction Starting of Lucky Dog company
HOLIDAY AUTOS A UK rental company, adopted a raiding logistics strategy aimed at one segment of the market- the provision of rental vehicles to UK holidaymakers going abroad. Holiday autos recognized that many were either finding it difficult to organize rental holiday in. e.g. Spain before leaving UK. Allied to this is a price guarantee , which says the company will undercut the best alternative by $5. Way of business: Low price strategy is achieved through pursuit of low cost one. It does not own any vehicles, but rents them en bloc from local operators. After a year turnover of 1 million euro the company became the market leader in holiday rentals in UK. Challenge: After becoming the market leader the question of how to achieve further growth was addressed. Rather than remain concentrated in UK, it chose to expand internationally. With over 4000 international locations, it operates in 50 countries.
Raiding Strategies
Thank you! ARAVIND MUTHU VARUN BANSAL

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Raiding Strategies

  • 1. Raiding strategies A case of Interski, Telco vs. AT&T and Holiday autos
  • 2. INTRODUCTION Companies pursuing these strategies use their small size advantage, by seeking weak spots that are unattractive to larger companies. Those following raiding strategies look for niche markets in two areas first they can identify products that are not being provided either properly or even at all by the market leaders. second they can identify individual customers who for some reason are not being serviced to their satisfaction.
  • 3. AIM OF ATTACK A Head to head logistics strategy looks for temporary possession of customers whose needs are not being met While a raiding logistics looks for permanent possession of the market.
  • 4. INTERSKI A UK company based in Nottingham specializing in providing skiing holidays. Opted for a raiding strategy whereby it concentrates on one small part of the market organized school trips. Schools obviously have very specialized needs, such as additional safety and security, extra instructional facilities, organized transport and appropriate evening activities. Though some competitors exist even in this market it has still segmented itself in focusing in one small geographic patch in northern Italy. RESULTS: The company is experiencing amazing growth rates, year on year that would envy most others in the travel industry, because of their raiding strategies.
  • 6. TELCO VS AT&T Market leader in the telephone industry in US for sometime. Tenth biggest company in the country in terms of revenue. POLICY: To qualify for AT&T`s discount schemes, customers had to be frequent users of long distance calls, which means millions of American's who were infrequent users were ignored by the company ENTRY OF TELCO COMMUNICATIONS GROUP They buy long distance calls in bulk from AT&T and then act as a wholesaler, reselling the calls to consumers at reduced rates. Telco grew sales by 99 % in 1996. they were called as Dial- arounds AT&T Reaction Starting of Lucky Dog company
  • 7. HOLIDAY AUTOS A UK rental company, adopted a raiding logistics strategy aimed at one segment of the market- the provision of rental vehicles to UK holidaymakers going abroad. Holiday autos recognized that many were either finding it difficult to organize rental holiday in. e.g. Spain before leaving UK. Allied to this is a price guarantee , which says the company will undercut the best alternative by $5. Way of business: Low price strategy is achieved through pursuit of low cost one. It does not own any vehicles, but rents them en bloc from local operators. After a year turnover of 1 million euro the company became the market leader in holiday rentals in UK. Challenge: After becoming the market leader the question of how to achieve further growth was addressed. Rather than remain concentrated in UK, it chose to expand internationally. With over 4000 international locations, it operates in 50 countries.
  • 9. Thank you! ARAVIND MUTHU VARUN BANSAL