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Offensive & defensive strategies

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  • 1. Offensive & Defensive Strategies By Nagarjuna Adiga
  • 2.  Primary Purpose is to make possible attacks unattractive or discourage competitors.  It is a developed to protect market share, position and profitability.  It is a strategy that can be used to keep up top position in local and existing market.  This strategy is most successful to keep up the customer’s confidence which no new competitor can disturb. Defensive Strategies
  • 3. 1. Position Defense  The position defense is the simplest defensive strategy.  It simply involves trying to hold your current position in the market.  To do this, you simply continue to invest in your current markets and attempt to build your brand name and customer loyalty.  Only negative aspect of this strategy is that it can make you a target for new entrants to the market.  Example – Rin soap by HUL
  • 4. 2. Mobile Defense  Making constant changes in the business.  Involves new product introduction, entering new market or simply making changes in existing products.  Business must be flexible enough to adapt new environment.  Example - ITC
  • 5. 3. Flanking Defense  Defending the market share by entering new market and diversification.  If you lose your market share in the existing market you can make up for it in these new markets.  Negative aspect is that there are chances of losing main focus.  Example – FOGG deodorants
  • 6. 4. Counter-Offensive Defense  The counter-offensive defense is a retaliatory strategy  When a competitor attacks your business, you strike back with your own attack
  • 7. 5. Contraction Defense  Least desirable defense because it involves retreating from markets.  This allows you to redeploy your resources into other areas.  Example – TATA selling its soap making company to Unilever
  • 8. Why Defensive Strategies?  Retention of market share  Raising the barriers of entry  Long term contracts  Intact reputation  Market leadership
  • 9. Offensive Strategy  Improving own position by taking away market share of competitors.  Involves direct & indirect attacks  Retaliatory in nature.  Example – Samsung vs. Apple
  • 10. 1. Frontal Attack  Attacking a competitor head-on  Attacking with similar products, price, quality, promotion & distribution.  Highly risky unless attacker has a clear advantage  Focused on competitors strength rather than weakness
  • 11. 2. Flank Attack  Attacking the competitor at the weak point or blind spot  Less risky when compared with frontal attack  Follows the path of least resistance where competitor is incapable of defending  Example – Titan on HMT
  • 12. 3. Encirclement Attack  Combination of frontal & flank attack.  Attacker must have superior resources.  Surrounding with various brands so as to make competitor difficult to defend  Defender’s attention gets spread across various products making him harder to defend  Example – Maruti Suzuki
  • 13. 4. Bypass Attack  Also called leapfrog strategy  Overtake the competitors by introducing new technologies  Diversifying the products  Example - PepsiCo
  • 14. 5. Guerilla Attack  Small hit-and-run attacks to destabilize the competitor  Attacks take several forms  Example – Pepsi vs. Coca Cola
  • 15. Why Offensive Strategies?  Destabilize the leader  Acquire market share  Sales Boost  Leapfrog the competitor
  • 16. “Do not assume the enemy will not come but be prepared for his coming… Do not presume he will not attack, but instead make your own position unassailable.”