Question

The threat of competitors swooping in to steal your customers or your share of the market can sometimes seem overwhelming for a small-business owner. Competition is inevitable in the business world. Understanding Strategy: Defensive strategies are management tools that can be used to fend off an attack from a potential competitor. Defending your business strategically is about knowing the market you're best equipped to operate. Other word In contrast to offensive strategies which are aimed to attack your market competition defensive strategies are about holding onto what you have and about using your competitive advantage to keep competitors at bay.

McDonald is using offensive strategy by launching 1 dollar menu to the market. This offensive strategy will hit the burger Burger king. Burger King could launch their own value menu as a defensive strategy to prevent customers from switching brands. Already Burger King launched their value menu to defend them self by advertising fresh and healthy.

Do you agree with the posted above? why?

Answer 1

Yes, I do agree to the above post.

McDonald uses offensive strategy to launch a dollar menu onto the market. This aggressive tactic would target the burger competitors like Wendy's and Burger's king. Wendy and Burger King may announce their own value menu as a protective plan to deter consumers from swapping brands. Burger King has also introduced a value menu and by promoting new and safe, Wendy's are seeking to protect themselves. The older the company becomes, the easier it can be to raise market share or earnings, particularly when you are aiming for rapid development. Diversifying into new business areas not only gives you the ability to boost your profits dramatically, but it also prevents you in case your main company takes a short or long term nosedive. Analyze plans for diversification based on their future profits and impact the main sector to accomplish them.

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