Fortify-and-defend strategy: The essence of “fortify-and defend” is to make it harder for challengers to gain ground and for new firms to enter. Specific defensive actions can include: (1) attempting to raise the competitive ante for challengers and new entrants via increased spending for advertising, higher levels of customer service, and bigger R&D outlays, (2) introducing more product versions or brands to match the product attributes that challenger brands have or to fill vacant niches that competitors could slip into, (3) adding personalized services and other extras that boost customer loyalty and make it harder and more costly for customers to switch to rival products, (4) keeping prices reasonable and quality attractive, (5) building new capacity ahead of market demand to discourage smaller competitors from adding capacity of their own, (6) investing enough to remain cost-competitive and technologically progressive, (7) patenting the feasible alternative technologies, and (8) signing exclusive contracts with the best suppliers and dealer distributors. A fortify-and-defend strategy best suits firms that have already achieved industry dominance and do not wish to risk antitrust action. A fortify-and-defend strategy always entails trying to grow as fast as the market as a whole and requires reinvesting enough capital in the business to protect the leader’s ability to compete.

Advertisement
Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
72 Comments

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account