Offensive and Defensive Strategies Flashcards
Types of strategies
Build, hold, niche, harvest, deletion
Build strategy
Aims to improve organisational performance through expansion of activities
Market expansion - new users, uses, up frequency
Market share through competitor confrontation - frontal, flanking, encirclement, bypass, guerilla
Frontal Attack (Build)
Objective: Capture defender’s market
Can be costly to implement - must have sufficient resources
Requires substantial superiority in at least one area of marketing programme
e.g. Pepsi blind taste tests
Flanking Attack (Build)
Objective: Concentrates on aggressor’s strengths against competitor’s weaknesses
Identify gaps (underserved, underrepresented segments) to attack
e.g. Tesla attack share of luxury brands without EV
Encirclement Attack (Build)
Two approaches - cut off competitors from resources, support, access to supply/market OR offer customer an all-round better product
e.g. Coca Cola secured exclusive dist rights in stores/restaurants - Virgin Cola out of business
Bypass Strategy (Build)
Avoid competing where competition is strong and go around to new positions
e.g. iPhone created new smartphone maarket
Guerilla Tactics (Build)
Weaken competition through attrition and surprise attacks
e.g. Price reductions, sales promotions
Hold Strategies
Firms already have strong positions in the market so employ defensive strategies to hold this position.
Position, flanking, pre-emptive strike, counter-offensive, mobile defence, contraction defence
Position Defence (Hold)
Aim: Shut out competition by erecting barriers around the firm and its market offerings
e.g. Ecosystems that characterise tech giants
Flanking Defence (Hold)
Strengthen flanks without providing weaker and more vulnerable target elsewhere
e.g. ‘Essential Waitrose’ to offer lower price point
Counter-Offensive Defence (Hold)
When aggression can’t be deterred, try to strike back hard.
e.g. Mercedes Benz and Jaguar ads
Mobile Defence (Hold)
Shift resources to where they are needed
e.g. Persil updates dosing, packaging and energy consumption in line with changing consumer attitudes towards environment
Contraction Defence (Hold)
More to a more defensible position - reduce overstretching, concentrate on the core business
e.g. Tesco withdrew Fresh & Easy in US
Market Niche Strategies
Focus on a limited sector of the total market and gearing product specifically to them
Harvest Strategies
Minimise costs, maximise revenues and take cash out for other projects
Maximise returns from a product before it’s dead/withdrawn
