Offensive & defensive strategies

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Offensive & defensive strategies

  1. 1. Offensive & Defensive Strategies By Nagarjuna Adiga
  2. 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. 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. 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. 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. 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. 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. 8. Why Defensive Strategies?  Retention of market share  Raising the barriers of entry  Long term contracts  Intact reputation  Market leadership
  9. 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. 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. 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. 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. 13. 4. Bypass Attack  Also called leapfrog strategy  Overtake the competitors by introducing new technologies  Diversifying the products  Example - PepsiCo
  14. 14. 5. Guerilla Attack  Small hit-and-run attacks to destabilize the competitor  Attacks take several forms  Example – Pepsi vs. Coca Cola
  15. 15. Why Offensive Strategies?  Destabilize the leader  Acquire market share  Sales Boost  Leapfrog the competitor
  16. 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.”

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