This strategy suggests that
attack your enemy when you are hurt by him. Market leaders, when
attacked by their competitors, launch counterattacks to protect their
positions. Competitors may attack the leader through price cuts,
improved products, or even straight invasion into the leader’s
territory. Market leader has got few options in this situation. He may
counterattack competitors directly, attack a particular corner of the
competitors, or launch all-out attack. The frontal or direct attack is
undertaken when leader starts loosing his market share rapidly. When
the leader does not face such a situation, he may wait for the
opportune moment and should launch the attack when time comes. If
the competitors invade directly into the leader’s territory, the leader
should also launch attack into the major territories of the attackers so
that they re-treat from his territory to protect their ones. The leader
may also exploit his economic as well as political strengths so that the
attackers fall back to him. Using his economic muscle, the leader may
offer the vulnerable products at lower prices which will jeopardize the
attackers’ positions. He may also discourage people from buying
competitors’ products by announcing in advance the product
improvements he is contemplating.
