Umair Habib presents on defensive strategies. Defensive strategies are marketing plans designed to protect a company's market share, profitability, product positioning, or mind share. They include joint ventures, retrenchment, divestiture, and liquidation. Joint ventures allow companies to share risks and resources. Retrenchment involves cost cutting during declining sales. Divestiture sells off divisions, while liquidation sells all assets. Defensive strategies strengthen a firm's position and lessen the risk of attacks from competitors.

1. In the name of Allah who is most merciful
and beneficial

2. Defensive Strategies
 Presented By
Umair Habib 11212

3. What is Strategies?
 A method or plan chosen to bring about a desired
future such as achievement of a goal or solution to a
problem.

4. Defensive Strategies
 Defensive strategies are marketing warfare strategies
designed to protect:
 Company’s market share
 Profitability
 Product positioning or
 Mind share.

5. Defensive Strategy-Principle
 Always counter an attack with equal or greater force.
 Defend every important market.
 The firm should be vigilant in scanning for potential
attackers. Assess the strength of the competitor.
 The best defense is to attack yourself. Attack your weak
spots and rebuild yourself anew.
 Defensive strategies should be the exclusive domain of
the market leader.

6. Types of Defensive Strategies
 Joint venture
 Retrenchment
 Divestiture
 Liquidation

7. Joint Venture Strategy
 Joint venture is a popular strategy that occurs two or
more companies form a partnership for the purpose of
capitalizing on some opportunity.
 This strategy allows companies to improve
communication and networking, to globalize
operation and minimize risk.
 Joint venture of Maruti(51%): Suzuki(49%)
 Joint venture of Tata(73.3%): Docomo(26.7%)

8. Retrenchment Strategy
 Retrenchment occurs when an organization regroups
through cost and asset reduction to reverse declining
sales and profits.
 In some case, bankruptcy can be an effective type of
retrenchment strategy.
 Vishal Mega Mart
 Subhiksha Stores

9. Divestiture Strategy
 Selling a Division or part of an organization is called
divestiture.
 Divestiture is often used to rise capital for further
strategic acquisitions or investment.
 This strategy is also useful to rid unprofitable activities
in a firm.
 IBM- PCD Divestiture (Lenovo)

10. Liquidation Strategy
 Selling all of company’s assets, in parts, for their
tangible worth is called liquidation.
 However, it may be better to cease operating than to
continue losing large sum of money.
 Satyam Scam
 Eckerd Pharmacy

11. Advantages of Defensive Strategy
 Increasing your marketing and advertising.
 The Defensive Strategies Typically less risky.
 Enhance the value of your product or services.

12. Disadvantages of Defensive Strategy
 Business does not understand its target market.
 Innovation and product development.

13. Conclusion
 Defensive Strategies strengthen the firm’s present
position and the lessens the risk of being attacked.
 They also help sustain any competitive advantage.