Creating sustainable competitive advantages - Offensive and defensive competitive strategies

6 important questions on Creating sustainable competitive advantages - Offensive and defensive competitive strategies

What are four competitive strategies?

- Hold (or maintenance) strategies

- Niche (or focus) strategies
- Harvest (or reaping) strategies
- Deletion (divestment) strategies

What is the difference between a holding and defensive strategy?

defensive strategies to enable them to hold the ground they have already won. A hold strategy may be particularly suitable for a business or product group designated as a cash generator for the company. Where that cash is needed for investment elsewhere.



Defensive strategies
While in some markets competitor aggression may be low, making a holding strategy relatively easy to execute, in most, especially where the potential gains for an aggressor are high, more constructive defensive strategies must be explicitly pursued

What is a market nich strategy?

Market niche strategies, focusing on a limited sector of the total market, make particular sense for small and medium sized companies operating in markets that are dominated by larger operators. The strategies are especially suitable where there are distinct, profitable, but underserved pockets within the total market, and where the company has an existing, or can create a new, differential advantage in serving that pocket. The two main aspects to the niche strategy are (1) choosing the pockets, segments, or markets on which to concentrate and (2) focusing effort exclusively on serving those targets.
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

What is a harvesting strategy?

obtain maximum returns from the product before its eventual death or withdrawal from the market.

What is a divestment/ deletion strategy?

Where the company decides that a policy of harvesting is not possible, attention may turn to divestment, or deletion from the corporate portfolio. Divestment – the decision to get out of a particular market or business – is never taken lightly by a company. It is crucial when considering a particular business or product for deletion to question the role of the business in the company’s overall portfolio. Once the decision has been taken, implementation involves getting out as quickly and cheaply as possible.

What type of manager fits to each strategy?

Ø Pioneers and conquerors for build strategies

Ø Administrators to hold position

Ø Focused creators to niche

Ø Economizers for divestment

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo