Presented by

Monika

Ashish

Offensive & Defensive Strategies

A type of corporate strategy that consists of actively trying to pursue changes within the industry. Companies that are managed as offensive competitive generally invest heavily in technology and Research and Development (R&D) in an effort to stay ahead of the competition.

Offensive Strategy

1.Initiatives to match or exceed competitor strengths ( Frontal Strategy )

2.Initiatives to capitalize on competitors weakness ( Flanking Strategy )

3.Simultaneous initiatives on many fronts ( Encirclement strategy )

4.End – Run offensives.5.Guerrilla offensive.6.Preemptive strikes

Basic types of Offensive Strategies

This is the direct, head on attack meeting competitors with the same product line, price, promotion, etc. Because attack is on the enemy’s strengths rather than weakness it is considered the most risky and least advised strategy.

Frontal strategy

The aim here is to engage competitors in those products markets where they are weak or have no presence at all. Its overreaching goal is to build a position from which to launch, an attack on the battlefield later.

Flanking strategies

On occasion a company may see merit in launching a grand offensive involving multiple initiatives ( price cuts, increased advertising, additional performance features, new models & styles, customer service improvements ) launched more or less concurrently across a wide geographic front. Such all out campaigns can force a rival into defensive actions to protect different pieces of its customer base simultaneously & thus divide its attention.

Encirclement strategy

This is the most indirect form of competitive strategy as it avoids confrontation by moving into new and as yet uncontested fields. Three type of bypass are possible; develop new products, diversify into unrelated products or diversify into new geographical markets.

Bypass strategy

It is particularly well suited to small challengers who have neither the resources nor the market visibility to mount a full – fledged attack on industry leaders. In this strategy an underdog tries to grab sales and market share wherever & whenever it catches rivals napping or spots an opening through which to lure customers anyway.

Guerrilla offensive

• Market leader that are vulnerable i.e. unhappy buyers, inferior product line, weak competitive strategy, outdated plants & equipment. To be judged successful, attacks on leaders don’t have to result in making the aggressor the new leader; a challenger may win by simply becoming a stronger runner up.

• Runner up firms with weakness where the challenger is strong – these firms a an attractive target as the challenger’s resource strengths & competitive capabilities are well suited to exploiting their weakness.

• Struggling enterprise that are on the verge of going under – challenging a hard pressed rival in ways that further sap its financial strength and competitive position can weaken its resolve & make it to exit the market.

Choosing which rival to attack

• Small local and regional firms with limited capabilities – because small firms typically have limited expertise and resources, a challenger with broader capability is well positioned to raid their biggest and best customers.

Choosing which rival to attack ( contd. )