STRATERGY’S OF RUNNER UP FIRMS

Stratergies for Runner-up firms in India

What is meant by a runner up firm/company ?
• A runner up company is a company that stands at
second position in the industry in terms of market
share,sales with respect to the leading firm in the
industry.
• Runner up firms acquire weaker market positions
than the industry leaders.
• Some runner up firms play the role of market
challengers.
 Characteristics of the runner up firms
• The runner up firms are the ones which are
second best in the industry and use various
stratergy's to compete the leading
company in the industry.
“Rarely can a runner up firm improve its
market position by imitating the leading firm.
• Runner up firms have more strategic
flexibility and can consider appropiate
strategy.
 Strategic approaches followed by the
runner-up firms in industry
• Vacant niche approach:- in this approach the runner-
up firm concentrates on the consumer or the end
product that the major firms have neglected.
• Specialist strtegy: by using this approach the runner
up company operates a specialist on specific product
or end use, or geographic area.
The purpose is to build a competitive advantage.
• “Ours-is-better-than-their strategy”: this strategy
uses a combination of focus-differentiation strategy
keyed to product quality.
 • Content follow strategy: the runner up company focuses on
strategy that will provoke competitive retaliation from the
major firm.
They follow focus and differentiation strategies that keep them
out of the leader's strategies.

• Growth via accquisition strategy: strengthening a company's

position to have a larger market share is possible through
merger with or acquire weaker rivals.

• Distinctive image strategy: runner-up firms use a variety of

strategic approches by standing out from competitors.
Ex: creating a reputation for lowest price,desiging unique
product attributes,devising creative advertising.
GENERIC STRATERY’S IN THE
INDUSTRIES
Every firm has a set of strategy and each
strategy has a unique set of components.
Each strategy ultimately yields many business
opportunities, however we can list down three
basic strategy’s in the industry.
1. striving to be overall low-cost producer in the industry.
2. seeking to differentiate product offering in one way ore
another from rivals’ products.
3. A focused approach via low-cost or differentiation to a
narrow portion of the market rather than going after the whole
market.
Runner up firm from various
industries
•Automobile industry
•Fmcg industry
•Telecommunication industry
•Pharmaceutical industry
 Automobile industry-HYUNDAI
• Hyundai Motor India Limited (HMIL) is a wholly owned
subsidiary of Hyundai Motor Company (HMC), South
Korea and is the largest passenger car exporter and
the second largest car manufacturer in India.
• HMIL presently markets 6 models of passenger cars
across segments.
• The A2 segment includes the Santro, i10 and the i20,
the A3 segment includes the Accent and the Verna,
the A5 segment includes the Sonata Transform and
the SUV segment includes the Santa Fe.
Strategy of Hyundai
• Hyundai has announced to launch more
new cars in India, to be able to capture the bigger
part of the market.
 
• In addition company plans to expand
their dealership for deeper market penetration in India
the company's managing director Han Woo Park
revealed.

• In the Indian market, Hyundai produced 600,000 cars

per annum, which releases from two units in Chennai.
One third of the cars are exported. 
• Hyundai is the India's largest exporter of cars and second
largest in Asia in production of passenger cars.
• The companies Indian arm, exports cars to 110 countries
including, Africa, Middle East, Asia and Australia.
• Santro King, i10, i20, Accent, Verna
and Sonata Transform are the Hyundai cars which rule a
major part of Indian automobile market.
• The companies strategy is to reach the domestic market
which is witnessing a higher demand of automobile.
• Hyundai is planning to extend it's dealer network
keeping in mind the rural India. 
Pharmaceutical industry- Ranbaxy
• Ranbaxy Laboratories Limited (Ranbaxy), India's largest
pharmaceutical company, is an integrated, research based,
international pharmaceutical company, producing a wide
range of quality, affordable generic medicines,
trusted by healthcare professionals and patients across
geographies.

• Ranbaxy today has a presence in 23 of the top 25

pharmaceutical markets of the world. The Company has a
global footprint in 46 countries, world-class manufacturing
facilities in 7 countries and serves customers in over 125
countries. 
Strategy of Ranbaxy

• Ranbaxy is focused on increasing the momentum

in the generics business in its key markets
through organic and inorganic growth routes.
• It is the Company’s constant endeavour to
provide a wide basket of generic and innovator
products, leveraging the unique Hybrid Business
Model with Daiichi Sankyo.
• The Company will also increasingly focus in high
growth potential segments like Vaccines and
Biogenerics. These new areas will add significant
depth to the existing product pipeline.
 FMCG industry-ITC
• ITC was incorporated on August 24, 1910 under
the name Imperial Tobacco Company of India
Limited. As the Company's ownership
progressively Indianised, the name of the
Company was changed from Imperial Tobacco
Company of India Limited to India Tobacco
Company Limited in 1970 and then toI.T.C.
Limited in 1974.
• ITC is a board-managed professional company,
committed to creating enduring value for the
shareholder and for the nation. 
Strategy of ITC
• ITC is focusing on delivering value at competitive prices.
• Its tremendous reach through extensive distribution chain
has been a competitive advantage.
• Additionally, the company’s e-choupal model for direct
procurement is well known under which ITC partners with
over 100,000 farmers for spices and wheat procurement
and an even larger number for oilseeds.
• A rich product mix, along with ramp-up of investments in
its new sectors, will be instrumental in charting ITC’s
growth path.
Telecommunication industry-BSNL
• Bharat Sanchar Nigam Ltd. formed in October, 2000, is
World's 7th largest Telecommunications Company
providing comprehensive range of telecom services in
India: Wireline, CDMA mobile, GSM Mobile, Internet,
Broadband, Carrier service, MPLS-VPN, VSAT, VoIP
services, IN Services etc.
• BSNL has the privileges which companies like Airtel,
Vodafone and IDEA can only dream of. It always gets
the preferential treatment along with MTNL.
• Be it the existing spectrum or the additional spectrum,
BSNL is always at an advantage. It is one of the oldest
telecom providers in India.
Strategy of BSNL
• BSNL is the only service provider, making focused
efforts and planned initiatives to bridge the Rural-
Urban Digital Divide ICT sector.
• BSNL is focusing on provision of value added
services/features to attract high end customers
and to double its revenues from VAS.
BSNL is participating/member of the following submarine cable
systems:
• Bharat Lanka Cable System
• Europe India Gateway (EIG) Cable System
• Millennium Cable Sub-System West (MCSS-W):
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