Defensive Strategies - Defensive core strategy 2: optimise position
4 important questions on Defensive Strategies - Defensive core strategy 2: optimise position
What happens when optimising a position?
When does the optimisation of the position happen?
What could a company do to maximise its NMC?
- Focus on the margin-volume rather than the price-volume.
- Reduce marketing expenses in order to grow NMC.
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When should a company reduce its market focus as part of optimising the position?
- When a company does not have the resources to invest in protecting its current share position.
- When more profit can be derived from a narrower/more selective market.
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