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Offensive and Defensive Strategies

• Offensive Strategies
• Used to build new or stronger market
  position and/or create competitive
  advantage
• Defensive Strategies
• Used to protect competitive advantage
Offensive Strategies
• Direct attacks: Price cutting, adding new
  features, or going after poorly served markets
• End-run offensives: Seeking unoccupied
  markets
• Preemptive competitive strategies: Being first
  to obtain particular advantageous position
• Acquisitions: Buying out a competitor
Defensive Strategies
• Attempts to reduce risks of being attacked
• Convince an attacking firm to seek other
  targets
• Blunt the impacts of any attack
  – Exclusive contracts with best suppliers
  – New models to match competitor’s lower prices
  – Public announcements about the willingness to
    fight
Counter-parry
• Popular strategy for multinationals
• Respond to attack by attacking competitor in
  another country
  – Ex.: Kodak—When Fuji attacked Kodak in the U.S.,
    Kodak retaliated by attacking Fuji in Japan.
  – Goodyear also attacked Michelin in Europe as
    response to attack in U.S.

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Offensive & deffense strategies

  • 1. Offensive and Defensive Strategies • Offensive Strategies • Used to build new or stronger market position and/or create competitive advantage • Defensive Strategies • Used to protect competitive advantage
  • 2. Offensive Strategies • Direct attacks: Price cutting, adding new features, or going after poorly served markets • End-run offensives: Seeking unoccupied markets • Preemptive competitive strategies: Being first to obtain particular advantageous position • Acquisitions: Buying out a competitor
  • 3. Defensive Strategies • Attempts to reduce risks of being attacked • Convince an attacking firm to seek other targets • Blunt the impacts of any attack – Exclusive contracts with best suppliers – New models to match competitor’s lower prices – Public announcements about the willingness to fight
  • 4. Counter-parry • Popular strategy for multinationals • Respond to attack by attacking competitor in another country – Ex.: Kodak—When Fuji attacked Kodak in the U.S., Kodak retaliated by attacking Fuji in Japan. – Goodyear also attacked Michelin in Europe as response to attack in U.S.