Virgin Cola led an assault on Coca-Cola head-on in the US and failed to get more than 1% of the market. Red Bull, on the other hand, launched a niche brand distributed largely through bars and ended up with 65% of the $650 million energy drinks market.
Others find innovative ways to use their supply chains, such as offering a lower grade product or service to price-conscious customers, giving them time to get a foothold in the market before raising the quality. Skype allowed customers to make international calls through the internet, attracting 100 million subscribers.
Strategies to crack well-guarded markets
David J Bryce
Jeffrey H Dyer
Harvard Business Review, May 2007.