Defensive Strategy Analysis
The evaluation of strategies used by competitors to defend their market position, such as legal actions, increased marketing spend, or aggressive pricing tactics.
Implications
The assessment and planning of strategies designed to protect a company from competitive threats, market downturns, or other external risks, often involving contingency planning, cost control, and market positioning.
Example
Example: An automotive company conducts defensive strategy analysis to prepare for potential new entrants in the electric vehicle market, identifying ways to protect its market share through innovation and strategic partnerships.
Related Terms
Different from offensive strategies, which aim to grow market share or enter new markets, defensive strategies focus on protecting existing positions and mitigating risks.
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