The Assignment on Offensive Strategies In Business

OFFENSIVE STRATEGIES IN
BUSINESS
“Offense is the best
defense” – An English
proverb

DEFINITION:
Also called “hardball approach” where the rival makes every possible
move (ethical/ non ethical) to disrupt cash flow of the competitor (Yannopoulos, 2011)
.
PROS:
 Risky but profitable; risk is equal to returns.
 Not only efficient, but also intense.
 Increases strength of the enterprise
 Acts as a cleansing agent of the market by eliminating unnecessary rival firms
(Thompson, 2016).
CONS:
 Risky endeavor; involves a plethora of anti- social and unethical initiatives, therefore,
high chances of getting criminalized.
 Unethical and immoral that can harm the reputation of the company if the endeavor
goes wrong.
 Involves huge monetary funds and other resources that can make the company incur
huge expenditure.
1. ATTACK A RIVAL’S PROFIT
SANCTUARIES

Definition: Also known as
“predatory pricing”, the companies reduce price of a product
up to a level where the competitors cannot compete (Leslie, 2013).
PROS:
 Disallows new entrants in the market, thereby, reducing market commotion and traffic.
 Predatory pricing reduces competition by driving out financially weaker competitors from
the market.
 Firms following predatory pricing acquires dominant positions in the market perpetually
(Thompson, 2016).
CONS:
 Illegal in nature. The methods utilized in predatory pricing are unethical, illegal and
immoral, therefore, risky in terms of social and entrepreneurial policing.
 Predatory pricing is sometimes questionable regarding its utility and authenticity in
certain areas and period of time.
 Predatory prices seem to be less feasible in the long run. For short run, predatory prices
might as well work but it becomes impossible for the firms to maintain their profit
margin if predatory pricing is carried out throughout a longer period of time.
2. DUMPING GOODS AT CUT RATE PRICES
IN THE MARKET OF IMPORTANT RIVALS