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Aggressiveness strategyFrom Wikipedia, the free encyclopedia

Business strategies can be categorized in many ways. One popular method is to assess strategies based on their

degree of aggressiveness. Aggressiveness strategies are rated according to their marketing assertiveness,

their risk propensity, financial leverage, product innovation, speed of decision making, amongst others. Typically

the range of aggressiveness strategies is classified into four categories: prospector, defender, analyzer, and

reactor.

Contents

1 Prospector strategy

2 Defender strategy

3 Analyzer

4 Reactor5 See also

6 Finding related topics

7 References

Prospector strategy

This is the most aggressive of the four strategies. It typically involves active programs to expand into new

markets and stimulate new opportunities. New product development is vigorously pursued and offensivemarketing warfare strategies are a common way of obtaining additional market share. They respond quickly to

any signs of market opportunity, and do so with little research or analysis.

A large proportion of their revenue comes from new products or new markets. They are often highly leveraged,

sometimes with a substantial equity position held by venture capitalists. The risk of product failure or market

rejection is high. Their market domain is constantly in flux as new opportunities arise and past product offerings

atrophy.

They value being the first in an industry, thinking that their first mover advantage will provide them with

premium pricing opportunities and high margins. Price skimming is a common way of recapturing the cost ofdevelopment. They can be opportunistic in headhunting key employees, both technical and managerial.

Advertising, sales promotions, and personal selling costs are a high percentage of sales.

Typically the firm will be structured with each strategic business unit having considerable autonomy. The industry

that they operate in tends to be in the introduction or growth stage of its life cycle, with few competitors and

evolving technology

Defender strategy

This strategy entails a decision not to aggressively pursue markets. As a result, they tend to do none of the things

prospectors do. A defender strategy entails finding, and maintaining a secure and relatively stable market. Rather

than being on the cutting edge of technological innovation, product development, and market dynamics; a

defender tries to insulate themselves from changes wherever possible.

http://en.wikipedia.org/wiki/Offensive_marketing_warfare_strategieshttp://en.wikipedia.org/wiki/Offensive_marketing_warfare_strategieshttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Referenceshttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Finding_related_topicshttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Reactorhttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Analyzerhttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Prospector_strategyhttp://en.wikipedia.org/wiki/Strategic_managementhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Recruiterhttp://en.wikipedia.org/wiki/Price_skimminghttp://en.wikipedia.org/wiki/First_mover_advantagehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Venture_capitalisthttp://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Offensive_marketing_warfare_strategieshttp://en.wikipedia.org/wiki/New_product_developmenthttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Referenceshttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Finding_related_topicshttp://en.wikipedia.org/wiki/Aggressiveness_strategy#See_alsohttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Reactorhttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Analyzerhttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Defender_strategyhttp://en.wikipedia.org/wiki/Aggressiveness_strategy#Prospector_strategyhttp://en.wikipedia.org/wiki/Strategic_management

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In their attempt to secure this stable market they either keep prices low, keep advertising and other promotional

costs low, engage in vertical integration, offer a limited range of products, or offer better quality products or

customer service. They tend to be slower in making decisions and will only commit to a change after extensive

research and analysis.

Their goals tend to be efficiency oriented rather than effectiveness oriented. The industry tends to be mature,

with well defined technology, products, and market segments. Most sales tend to be repeat or replacement

purchases. Individual strategic business units typically have moderate to low levels of autonomy.

Analyzer

The analyzer is in between the defender and prospector. They take less risk and make less mistakes than a

prospector, but are less committed to stability than defenders. Most firms are analyzers. They are seldom a first

mover in an industry, but are often second or third place entrants.

They tend to expand into areas close to their existing core competency. Rather than develop wholly new

products, they make incremental improvements in existing products. Rather than expanding into new markets,

they gradually expand existing markets. They try to maintain a balanced portfolio of products with some stableincome generators and some potential winners. They watch the developments in their industry closely, but dont

act until they are sure that the time is right.

Reactor

A reactor has no proactive strategy, often reacting to events as they occur. They respond only when they are

forced to by macro environmental pressures. This is the least effective of the four strategies. It is without

direction or focus.

Miles, Snow et al. (1978) have identified three reasons why organizations become Reactors:

Top Management may not have clearly articulated the organization's strategy.

Management does not fully shape the organization's structure and processes to fit a chosen strategy.

Tendency for Management to maintain the organization's current strategy-structure relationship despite

overwhelming changes in environmental conditions.

See also

marketing strategies

mark dominance strategies

marketing warfare strategies

strategic planning

strategic management

Porter generic strategies

innovation strategies

Finding related topics

list of marketing topics

list of management topics

list of economics topics

http://en.wikipedia.org/wiki/List_of_economics_topicshttp://en.wikipedia.org/wiki/List_of_management_topicshttp://en.wikipedia.org/wiki/List_of_marketing_topicshttp://en.wikipedia.org/w/index.php?title=Innovation_strategies&action=edit&redlink=1http://en.wikipedia.org/wiki/Porter_generic_strategieshttp://en.wikipedia.org/wiki/Strategic_managementhttp://en.wikipedia.org/wiki/Strategic_planninghttp://en.wikipedia.org/wiki/Marketing_warfare_strategieshttp://en.wikipedia.org/w/index.php?title=Mark_dominance_strategies&action=edit&redlink=1http://en.wikipedia.org/wiki/Marketing_strategieshttp://en.wikipedia.org/wiki/Environmental_scanninghttp://en.wikipedia.org/wiki/Product_portfoliohttp://en.wikipedia.org/wiki/Core_competencyhttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Quality_(business)http://en.wikipedia.org/wiki/Vertical_integration

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list of finance topics

list of human resource management topics

list of accounting topics

list of information technology management topics

list of business law topics

list of production topics

list of business ethics, political economy, and philosophy of business topics

list of business theoristslist of economists

list of corporate leaders

References

Miles, R.E. and Snow, C. (1978) Organizational Strategy, Structure and Process, New York,

McGraw Hill, 1978.

Walker, O. and Ruekert, R. (1987) Marketings role in the implementation of business strategies,

Journal of Marketing, July 1987, pg 31.Boyd, H. and Walker, O. (1990)Marketing Management, A Strategic Approach, Boston, Irwin,

1990, ISBN 0-256-05827-X

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