Defend and Fortify Strategy

Question

What is a Defend and Fortify Strategy?

Answer 1

Defend and Fortify strategy:

The essence of this strategy to create it harder for challengers to gain ground and for new firms to enter. Specific defensive actions can contain: (i) attempting to hoist the competitive ante for new entrants and challengers via enhanced spending for advertising, higher levels of consumer service, and superior R&D outlays, (ii) introducing more product brands or versions to match the product characteristics that challenger brands have or to fill vacant niches that competitors could fall into, (iii) adding personalized services and other mores that increase consumer loyalty and make it more costly and harder for consumers to switch to rival products, (iv) keeping costs sensible and quality attractive, (v) making new capacity ahead of market demand to depress smaller competitors from adding capacity of their personal, (vi) investing enough to remain technologically progressive and cost-competitive, (vii) patenting the viable alternative technologies, and (viii) signing exclusive contracts with the best dealer and suppliers distributors. This strategy best suits firms that have already gated industry dominance and do not desire to risk anti-trust action. This strategy always entails trying to grow as quick as the market as a whole and needs reinvesting enough capital in the business to defend the leader’s ability to fight.