Transcript
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.
Defensive Strategies Defensive strategies are marketing warfare strategies
designed to protect:
Company’s market share
Profitability
Product positioning or
Mind share.
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.
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%)
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
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)
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
Advantages of Defensive Strategy
Increasing your marketing and advertising.
The Defensive Strategies Typically less risky.
Enhance the value of your product or services.
Disadvantages of Defensive Strategy
Business does not understand its target market.
Innovation and product development.
Conclusion Defensive Strategies strengthen the firm’s present
position and the lessens the risk of being attacked.
They also help sustain any competitive advantage.
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