Question

Comment on the conditions that lead to defensive strategies. Use examples from the South
African retail industry to support your answer.

Answer 1

Defensive strategy is a marketing tool used by businesses to retain their valuable customers that could be easily taken by competitors. There are conditions that may lead to a company to employ defensive strategy. The conditions include; intense competition, loss of potential employees and liquidation which results to a company losing a lot of money. Defensive strategy should be encouraged by a partnership between private sector and government sector. For instance in South Africa, the retail industry has utilized the strategy as financial growth tool as well as creating job opportunities