Aggressor firms need to analyze which of their rivals to attack as well as how
to attack them. There are basically three types of firms that can be attacked
offensively: 14
1. Market leader(s). Waging an offensive against strong leader(s) risks
squandering valuable resources in a futile effort and even precipitating
a fierce and profitless industrywide battle for market share. Offensive
attacks on a major competitor make the best sense when the leader in
terms of size and market share is not the "true leader" in terms of
serving the market well. Signs of leader vulnerability include unhappy
buyers, sliding profits, strong emotional commitment to a technology
the leader has pioneered, outdated plants and equipment, a
preoccupation with diversification into other industries, a product line
that is clearly not superior to rivals', and a competitive strategy that
lacks real strength based on low-cost leadership or differentiation.
Attacks on leaders can also succeed when the challenger is able to
revamp its activity-cost chain or innovate to gain a fresh cost-based
or differentiation-based competitive advantage15 Attacks on leaders
need not have the objective of making the aggressor the new leader; a
challenger may "win'' by simply wresting enough sales from the leader
to make the aggressor a stronger runner-up.
2. Runner-up firms. Offensives against weaker, vulnerable runner-up firms
entail relatively low risk. Attacking a runner-up is iln especially
attractive option when a challenger's competitive strengths match the
runner-up's weaknesses