| In the marketplace, different firms take different | | | | position in the industry, usually employs an |
| strategy stances. This is but natural. As long as | | | | offensive strategy. The crux is that the firm |
| their situational designs and consequently their | | | | adopting an offensive strategy automatically |
| specific requirements of strategy differ from | | | | assumes the position of the challenger; the leader, |
| each other, they will evidently follow different | | | | mostly, is its target of attack. |
| strategy stances. One firm may find it appropriate | | | | A defensive strategy is usually employed by the |
| to have a direct confrontation with the market | | | | leader who has the compulsion to defend his |
| leader; another may find it appropriate to keep | | | | position against the confrontation of powerful |
| aloof for some time from the heat of | | | | existing competitors or strong new entrants |
| competition; the third may find it relevant to chalk | | | | trying to dislodge the leader from his topmost |
| out a strategy of sheer survival. It is essential to | | | | position. The leader's concern is, how best can I |
| understand that there is no universally valid | | | | defend my position? The leader cannot assume |
| strategy stance. It is so because the various | | | | that its position in the industry is safe and its job |
| firms do not share the same situational design. | | | | easy. It has to maintain constant vigilance and |
| Companies draw relevant elements and forge | | | | defend its position against the attack of the |
| unique strategies to suit their unique situational | | | | challengers, because in any industry challengers |
| design and relative position in the industry. Broadly, | | | | keep appearing. |
| these strategy stances can be classified under | | | | A firm practicing the niche strategy neither |
| three heads- offensive/ confrontation strategy, | | | | confronts others nor defends itself. It cultivates a |
| defensive strategy and niche strategy. | | | | small market segment for itself with unique |
| Offensive strategy, also known as confrontation | | | | products/services supported by a unique |
| strategy, is as the name indicates a strategy of | | | | marketing mix. These segments will be too small |
| aggression/confrontation. A firm that is not | | | | to attract big competitors. Normally, smaller firms |
| presently the leader, but aspires to leadership | | | | with distinctive capabilities adopt a niche strategy. |