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by raganwald 5011 days ago
what kind of strategy is "We want to be #3"?

It is not a strategy. It is a futile attempt to make it sound like they have a strategy. In most businesses, there is a natural market for #2. Somebody, somewhere, wants to be different. Somebody, somewhere, is offended by #1's size. Somebody, somewhere, finds #1's product too bland and watered-down for the masses. There will always be a Pepsi for every Coke.

The trouble with trying to be #3 is that even in saying it, you're talking about going after #1's market. And you will lose to #1 and #2 so huge that you'll be bankrupt.

The right way to be #3 in smartphones is to be #1 in education, or #1 in the 10-12 adolescent market, or #1 in the handheld gaming market, or #1 in the dweebs-who-use-Linux-on-their-phones market, or what-have-you.

This was detailed decades ago in Reis & Trout's "Marketing Warfare" book. There are four strategies:

- Defence (#1 in the market)

- Offence (#2 in the market)

- Flanking (Disrupt the market through an indirect approach)

- Guerilla (Dominate a niche market)

Nowhere in this list do you find "Lose the major market to the Offence and Defensive players."