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Business Strategies

Offensive and defensive strategies are by products or results of the corporate strategies. A corporate strategy is a comprehensive set of activities developed by top management to aid an organization achieve its corporate objectives. Involving all parts of an organization, these strategies consider both internal and external environments.

As the name suggests these strategies are aimed at placing the organization in a 'attack mode' of sorts. Organizations employing such strategies generally believe in acting before their opponent. Such strategies are usually achieved through internal growth, though some like mergers and acquisition, etc are external.

Concentration on a single product or service

The firm chooses to specialize in a single product, product line, or service. It plans to do one thing with great effectiveness and efficiency. This specialization allows an organization to do whatever it does extremely well, perhaps even better than other organizations. Used mostly by small organizations, it reduces the amount of resources required and as such is a low risk strategy. However, it ties up all of the firm's resources on a single product, service, or product li


This occurs when a firm decides to branch out and add products or services that are unrelated to its existing products and services. Conglomerate diversification can occur through acquisitions or it may be based on management decisions. The purpose in employing such a strategy is to increase sales and earnings, spread risks, or in the case of acquisitions simply to make an attractive investment.



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Approximate Word count = 1122
Approximate Pages = 4 (250 words per page double spaced)


  

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