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Defensive Strategies are pursued by an organization only when some sort of adjustments is required in any kind of circumstances in the structure or functioning of the organization. In the field of strategic management, most commonly, the market leaders use the Defensive Strategies. In cases where a small – business has reached a market – leading position, then there may be the need of the Defensive Strategies. Generally, the main aims of Defensive Strategy is to hold onto the market – leading position and also to fight with the competitors who intend and try to take away the market share and also the market – leading position. In Defensive Strategy Assignment Help, it is given that Defensive Strategy is that management tool which can be used to keep away an attack from any probable competitor. An organization has to keep its share of the market so as to keep its customer happy and a perfectly stable profit. Basically, there are different types of Defensive Strategies which is given in Defensive Strategy Assignment Help. They are: – divestiture, retrenchment, liquidation. Retrenchment Strategy is used or implemented only when the organization faces declining sales and profit. By using this Strategy, the organization recognizes its activities by reducing its assets and costs and thus reverses the effects of declining profits and sales. The Defensive Strategy which is used during the sale of a part or division of an organization. During the selling off of all the assets of an organization in small parts or divisions in order to convert them into cash according to their tangible worth, liquidation is pursued. It is a form of emotional strategy as the defeat of the organization is recognized in this part of Defensive Strategy.
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Advantages and Disadvantages of Defensive Strategy
There are certain advantages which are given in Defensive Strategy Assignment Help.
• Pursuing Defensive Strategy in an organization may lead to real benefits and stable profits.
• Defensive Strategy is comparatively less risk – laden as compared to other strategies like offensive strategies.
• Another advantage of Defensive Strategy is that, after implementing this strategy, the organization enhances the value of their products.
Along with the advantages, Defensive Strategy also has some disadvantages which are given in Defensive Strategy Assignment Help. They are
• The main and the biggest disadvantage of this strategy occur when the target market is not at all understood by the business.
• Another disadvantage occurs when the products and services are not aimed by the organization or the business.
• There may also be a risk on the glory in case of innovations and product development.
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