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Understanding Defensive Strategy
This is a management tool which is used to stop attacks from various potential competitors. It is a battleground. No need to defend so that the market share is protected and so that customers can be kept happy, as well as profits, stay constant. Strategically defending a business is knowing about the market. To make sure an organisation is equipped so that it can operate well and also knowing when is the right time to add new markets.
Defensive strategies are all about controlling what a company has and use competitive advantage for keeping competitors away. To understand it in detail, order our Defensive Strategies homework help from our website.
Benefits of this Strategy
There are various benefits of this approach. Some are mentioned below:
- First, a company’s advertising and marketing increases. It is an efficient way to get both new and old customers
- Second, this approach consists of very less risk when compared to offensive plan. Here the option of passive pressure is available to ensure market share so that one does not feel insecure at every point
- The third advantage is enhancing value of goods and services. Emphasizing one brand’s benefit but simultaneously devaluing competitors value. It can be a long-term strategy efficiently securing market for goods and services.
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Disadvantage of this Strategy
The most prominent drawback of this method when a business is not clear about the target market. All goods and services should aim at broader marketplace at a specific demographic. The key is to know the share in the market and try to hold on to that. Other than this there is no product development or innovation when implementing this strategy.
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