What is the encirclement?
Definition: The Encirclement Attack is a war strategy adopted by the challenger firm intended to attack the competitor on all the major fronts. Under this strategy, the challenging firm considers both the strengths and weaknesses of the opponent and then launch the attack simultaneously.
It is assumed that only those firms that are 10 times stronger or powerful than the opponent firm can launch the encirclement attack. The attacking firm must be adequate in its resources, then only it will be able to launch a grand offensive on several fronts.
The two strategies that can be used under the encirclement attack are Product and Market Encirclement. In product encirclement, the challenger firm may introduce different types of products with varied features and quality and may price these differently on the basis of their utility (as in this case study).
In the case of market encirclement, the firm may introduce the product for such a market segment, which left untapped by the competitor and thus enjoys the huge market share.
What has this got to do with Express Exchange and Express Union
Express Union and Express Exchange are key players in Cameroon’s money transfer market. With Express Union deploying a distribution strategy that highlights “proximity”, that is an Express Union office at almost every turn and present even in the most remote communities. Its growth has been very rapid. This growth has been helped with the development of partnerships such as the one with AES SONEL which permits customers to pay electricity bills via Express Union, which has been another magnetic force for traffic into Express Union offices.
This growth however has been fraught with slow customer service and perennially full Express Union offices. With bad news spreading faster than wild fire, Express Union developed a brand for slow customer service and full offices (a rather unwanted image, I must say). Over the years this has built a brand for Express Exchange which has capitalized on the spillover effect of Express Union’s calamity. With customers avoiding perpetual queues at Express Union they would start developing an affinity for Express Exchange whose empty offices meant the customers “turnaround” time would be swift. Ergo the corrosion of Express Union market share.
Emi money saves the day
If you notice, there’s an Emi money everywhere there’s an Express Exchange. That said they both use the red color on their buildings, their logos, and they are both always empty. All these are, well thought out attempts to muddle the differences in our minds between Emi money and Express Exchange. And as if that wasn’t enough an Express Union form is very valid at Emi money to either send or receive money. Ergo if you’ve received money from an Express Union office and the one in your town is full you could just go to the Emi money in your town and fill the receivers form with your Express Union information.
Poor Express Exchange, now she’s fighting both Express Union and Emi money who are working together against her. I guess all’s fair in love and war. Thanks for reading, hope it was enriching. Remember to like our page.
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