MKT 730 Chapter Notes - Chapter 13: Niche Market, Customer Retention, New Product Development
14 May 2015
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Document Summary
Perhaps the best example of a defensive strateg plan is general motor"s complete restructuring of its brand portfolio in 2009. Gm discontinued or sold four major brands that could not meet its requirements for profitability and strategic growth. The goal of defensive strategies is profit maximization, not sales or market share growth. Core strategy 1 protect position: strategic objective. Core strategy 2 optimize position: strategic objective. Core strategy 3 monetize, harvest, divest: strategic objective. Situation where companies must protect their market share are drastically different from one another, and thus their strategy to protect this market share will differ. Strategies to protect high-share positions are critical for short-run profit performance: they also provide a major source of cash for investment in offensive market strategies for future growth and profit performance. High-share businesses have to invest considerably more than do other businesses to protect share, independent of other share-eroding market forces.
