A defensive strategy is a business approach aimed at protecting a company's market share and profitability from competitors. This strategy often involves maintaining existing customers, improving product quality, and enhancing customer service. Companies may also focus on cost control and efficiency to withstand competitive pressures.
In addition to protecting market position, a defensive strategy can include diversifying products or services to reduce risk. By investing in research and development, companies can innovate and stay relevant in their industry. This approach is commonly used by established firms facing intense competition, such as those in the technology or automotive sectors.