OFFENSIVE

AND
DEFENSIVE
STRATEGIES
Presented By:
RACHNA MISHRA (A50001920024)
BAANI PASRICHA (A51339520005)

Presented To:
DR. VIKAS MADHUKAR
 OFFENSIVE
STRATEGY

Offensive strategy is focused on

achieving competitive advantage.
 “
OBJECTIVES OF OFFENSIVE STRATEGY

▪ To maximize the sales

▪ To destabilize the current market leader
▪ To acquire market share
▪ Leapfrog the competitor

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 ▪ Offensive competitive strategies seek to shape
an industry.
▪ This can be an expensive strategy.
▪ Offensive strategies may be contrasted with
defensive ones.

“Do not to assume the enemy will not

come, but rather to rely on one's
readiness to meet him; not to presume
that he will not attack, but rather to
make one's self invincible.”
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 Types of
Offensive
Strategy
• Frontal Attack
• Flank Attack
• Encirclement Attack
• By-pass Attack
• Guerilla Attack

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 Frontal Attack
▪ Attack with similar products, price quality promotions and
distribution.
▪ It is considered to be highly risky unless attacker has a clear
advantage.
▪ It is focused on competitor’s strengths rather than weaknesses.
▪ Example- Pepsi Vs Coke

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 Flank Attack
▪ A flank attack is when a challenging company attacks the
blind and weak points of the competitor.
▪ Companies do it to secure their market leadership position.
▪ Examples- LG v/s other TV producers in India
▪ - Woodland v/s Bata and Liberty

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 Encirclement Attack
▪ Encirclement attack is when you attack the competitor based
on its strengths and weaknesses and don’t leave any margin of
error.
▪ This strategy requires more resource and potentially high
investment on the part of the challenger company.
▪ Example- E-commerce companies

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 By-pass Attack
▪ This type of strategy is found in a firm which has the brains to
innovate and when it innovates, it bypasses the complete
competition and creates a segment of its own.
▪ Example- Ipod by Apple
▪ - Walkman by Sony

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 Guerilla Attack
▪ A strategy in which a company uses surprise and/or
unconventional interactions in order to promote a product or
service.
▪ Guerrilla marketing works on account of three effects which
are Surprise Effect, Diffusion Effect and Low-Cost Effect.
 Example- Coca Cola and McDonalds’

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DEFENSIVE
STRATEGY
Defensive strategies are marketing warfare
strategies designed to protect:
• Company’s market share
• Profitability
• Product positioning
• Mind share
.
 Principles
▪ Always counter an attack with equal or greater force

▪ Defend every important market.

▪ The firm should be vigilant in scanning for threats and access

the strength of the competitors.

▪ Defensive strategy should be the exclusive domain of the

market leader.

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 APPROACHES TO DEFENSIVE
STRATEGY
▪ Active approach:
▫ To block the competitors that are planning to steal the market
share.

▪ Passive approach:
▫ New product innovation
▫ Company expansion
▫ Reconnect with old customers
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 Types of Defensive Strategy
▪ Joint venture

▪ Retrenchment

▪ Divestiture

▪ Liquidation

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 JOINT VENTURE STRATEGY
▪ Two or more companies form a partnership for the purpose of
capitalizing on some opportunity.

▪ This strategy allows companies to improve operations and

networking and minimize risk.

▪ Example: -
▫ Joint venture of Maruti(51%) & Suzuki(49%)
▫ Joint venture of Tata(73%) & Docomo(27%)
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 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.

▪ Example: -
General Motors
Ford

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 DIVESTITURE STRATEGY
▪ Selling a Division or part of an organization is called divestiture.

▪ It is often used to raise capital for further strategic acquisitions or

investment.

▪ Example: -
▫ IBM- PCD Divestiture (Lenovo)

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 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.

▪ EXAMPLE: -
▫ Satyam Scam

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 ADVANTAGES AND
DISADVANTAGES

ADVANTAGES DISADVANTAGES

• Increasing your marketing ▪ Business does not

and advertising. understand its target
• The Defensive Strategies market.
Typically less risky. ▪ Innovation and product
• Enhance the value of your
development.
product or services.
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 “
REFERENCES

• Woolley, A. (2009). Offensive vs. defensive strategic

orientation and collective information processing in
teams. Academy of Management Proceedings. 2009.

• Yannopoulos, P. (2011). Defensive and Offensive

Strategies for Market Success. International Journal of
Business and Social Science. 13(2), 1-12.

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 THANKS!
Any questions?

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