Offensive Business Strategies
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"Another characteristic of offensive strategy is that it focuses on price-cutting and adding new features to create competitive advantage in the global market." This statement makes me want to ask the following two questions:
1. To achieve its objective using an offensive strategy, can an organization sell at loss?
2. Could this strategy provide a sustainable competitive advantage?
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Solution Summary
This solution discusses the characteristics of offensive strategy.
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For achieving the business objective, an organization can sell its products and services at a loss or below the costs of the products. Under a predatory offensive strategy, the business organizations often take the form of predatory pricing, which is cutting down pricing of the products below original costs of products to eliminate competition from markets with an objective to increase prices again after competitors have exited from the market (Peng, 2013). At the same time, it is a short term business strategy with the vision of earning revenues in future for the company. It is necessary for this strategy that opponents of the company must be financially weak.
Another feature of the offensive strategy, which ...
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