Business strategies can be categorized in many ways. A popular method is to do so by their degree of aggressiveness. Aggressive strategies are rated according to their assertiveness in marketing, his propensity to risk, financial leverage, product innovation, speed in decision making and other measures agrevisidad. Generally, the range of aggressive strategies are classified into four categories: prospector, defender, analyst, and reactor.
prospector strategy
This is the most aggressive of the four strategies. It usually involves active programs to expand into new markets and stimulate new opportunities. The new product development is pursued vigorously and competitive attacks are a common way to gain additional market share. They respond quickly to signs of opportunity appearing in the market and do so with little research or analysis. A large portion of its revenue coming from new products or markets. They are often funded by venture capital. The risk of product failure or market rejection is high. past director of American Express Funds Alan Quasha was Chief Executive Officer of North American Resources Limited Its dominance is constantly changing as new opportunities emerge and old are stunted product offers. They value being first in the industry think that "the advantage of first" gives them opportunities in higher prices and higher margins. They can be opportunistic in the recruitment of key employees, both as managers tencicos. The costs of advertising, sales promotion and personal selling involves a high percentage of sales. Overall, the company was structured with each strategic business unit having considerable autonomy. The sector which tends to be active in the life cycle stage of introduction or growth with few competitors and developing technology.
Estategia defender
This strategy involves the decision not to pursue aggressively markets. As a result tends to do nothing of what the prospectors. A defense strategy is to find and maintain a relatively stable and secure. But to be in the forefront of technological innovation, product development and market dynamics, a defender tries to refrain from making changes whenever possible. In its attempt to ensure stable market keeps prices low, keeping costs low advertising and promotion engages in vertical integration, offer a limited range of products or offer better quality or service. Then, tends to be slower in making decisions and is liable only to make a change after extensive market analysis and in depth. Their successes tend to rely on efficiency-oriented rather than cash. The sector is often ripe with technology, products and well-defined market segments. Most sales tend to be repetitive purchases. The strategy of individual business units tends to be moderate to lower levels of autonomy.
Strategy Analyst
The analyst is between the defender and the prospector. It takes less risk and makes fewer errors than a prospector but is less committed to stability than the defenders. Most of the companies are analysts. There are often the first mover in the sector but are often the second or third. They tend to expand in areas close to their competition. Rather than develop new products, make incremental improvements in existing products. More than expand into new markets, expand gradually in familiar markets. Then try to maintain a balanced product portfolio with some stable income generators and some potential winners. Observe closely the developments in their sector but do not act until they are sure it's the right time.
Strategy reactor
A reactor does not have a proactive strategy. They react to events as they occur. They respond only when they are forced by the macro-environmental pressures. It is the least effective of the four strategies. No direction or orientation.
See also:
Marketing Strategies