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Defensive Strategies

The document discusses defensive marketing strategies employed by market leaders when new threats to market share emerge. It provides examples of how Google stays ahead of competitors by introducing new products, how Tesco responded to competition from Walmart by lowering prices and improving promotions, and how Starbucks offered free WiFi to protect its market share from other businesses doing the same. The types of industries that employ defensive strategies do not matter - market leaders in any industry will implement such strategies when new threats appear.

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357 views

Defensive Strategies

The document discusses defensive marketing strategies employed by market leaders when new threats to market share emerge. It provides examples of how Google stays ahead of competitors by introducing new products, how Tesco responded to competition from Walmart by lowering prices and improving promotions, and how Starbucks offered free WiFi to protect its market share from other businesses doing the same. The types of industries that employ defensive strategies do not matter - market leaders in any industry will implement such strategies when new threats appear.

Uploaded by

karen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Who employs defensive strategy?

For
Employed by market example:
leaders, defensive
marketing strategies are
implemented any time a
new threat to market
share appears. The type
of industry doesnt
matter.
is the market leader in cloud technology
services. To stay ahead of new competitors, the
company actually attacks itself by producing
new products that force their old ones into
obsolescence. It thus presents a moving target
for new competitors, who end up competing
primarily against the old Google products.

was the market leader in general


merchandising when Wal-Mart began to move
in, threatening to attract their customers with
lower prices. Tesco responded with lowering the
price on many items, while simultaneously
improving the personalization of coupons and
promotions. In so doing, and despite Wal-
Marts ongoing success, Tesco kept hold of its
customer base in many cities.
was not the first coffee shop or restaurant to
offer free Wi-Fi, and to promote that fact to
customers; but it started doing so in order to
protect its market share from other
businesses that were doing just that.

the market leader for social media, updated


their options for friends lists as a direct
response to the circles offered on Google+.
This allowed users to establish different levels
of involvement in their social media contacts.
Retrenchment

Liquidation Divestiture
1 . Retrenchment
When the organization faces The basic distinctive
declining sales and profits competence of an
then it considers the organization is fortified
retrenchment strategy in through effectively designed
which it reorganizes its retrenchment strategy.
activities by reducing its
assets and costs.

By doing so the organization


actually reverses the affects
of declining profit and sales.
It is also called as
reorganization or turnaround
strategy.
Following are some of the activities that come under the
retrenchment category:

Selling of building
and lands for The product lines
raising certain cash are pruned.
for the business.

The marginal
The obsolete
businesses that are
factories are closed
not profitable are
down.
closed down.

The expenses of the


The number of
business are
employees are
controlled in an
reduced.
effective manner.

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