Presentation of defensive strategies

defensive strategies used by an organization

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.