What identifies a defensive strategy in a competitive market?

A defensive strategy in a competitive market primarily involves maintaining the existing market share. This approach is typically adopted by companies that are looking to protect their current customer base and position against potential threats from competitors. The focus is on ensuring stability and minimizing losses, rather than aggressively pursuing growth opportunities or innovation.

By prioritizing the preservation of market share, companies can allocate resources towards customer retention efforts, improving customer satisfaction, and enhancing the quality of their existing offerings. This strategy is essential in highly competitive markets where acquiring new customers may be challenging or where aggressive competitors are actively seeking to entice customers away.

In contrast, other strategies such as innovation in product design, exploring new market segments, and enhancing customer outreach generally emphasize growth and expansion. While these approaches can be beneficial in a competitive landscape, they do not specifically align with the goals of a defensive strategy, which is centered on safeguarding current successes rather than seeking new ones.