Offensive strategies in business are those that are proactive rather than reactive. They attempt to cause change rather than a response to a marketplace or competitor's action or disruption. To take your small business to the next level, look at offensive strategies you can use to increase market share or make it more difficult for competitors to keep up with you.
Offensive vs. Defensive Strategies
When you respond to marketplace conditions or your competition, you are in a defensive mode. For example, if you are a restaurant and your competitor begins offering free delivery, your competitor is on the offensive if it is the first one to do this. If you respond by offering free delivery, you are responding and are defending your market share.
If you are the first one in your space to offer 24/7 customer service, free shipping or a long-term warranty, you are using an offensive strategy to increase your sales.
Research and Development
Spend money on researching and developing new products, distribution methods or service offerings. These don’t have to be disruptive technologies. For example, if you can switch delivery companies, and the change allows you to offer free shipping because the new company's rates are lower, you have taken an offensive step.
If you create an area on your website with rich content and make it available only to your customers, that is another offensive strategy. You might create a loyalty program with discounts, free products, an extended warranty or other perks for customers who sign up for your loyalty program.
Research your marketplace with customer surveys and focus groups to develop new ways to sell. If you can invest in technology research and development, such as a way to add new features to an existing product, look at the costs to do so and the potential payback. Just because you do R&D doesn't mean you have to go ahead pay for what you discover. However, having that knowledge helps you make a decision to move forward later when the timing is better.
Introducing Marketplace Disruptions
Laptops made external hard drives, monitors and keyboards almost obsolete. Online air ticket booking sites signaled the end of many travel agencies. When online retailers began offering free or low-cost shipping and overnight delivery, many others were forced to offer the same or be left behind.
You don't have to create significant marketplace disruptions to develop an offensive strategy, according to Marketing Tutor. For example, if none of your competitors offer online sales, you create a marketplace disruption if you are the first to provide this option. If you are a tennis facility and offer a free beginner tennis racquet to everyone who signs up for your six-week beginner tennis course, that's a marketplace disruption.
Investing in R&D is often the best way to create the most profitable marketplace disruptions because they can make a competitor's products or business model obsolete.
Eliminate Underperforming Products
Another way to be proactive in running your business is to analyze your product or service lines to see which of your offerings aren't profitable and eliminating them. This allows you to put more money and effort into your core products.
Make Direct Comparisons
Offensive strategy types include making direct comparisons to your competitors, explains the Marketing Schools website. This can consist of side-by-side listings of product features, price comparisons or showing how your customer service, warranty and replacement policies are superior.
Open New Markets
You might be competing in a space that has an underserved or non-served customer group because they aren't large and profitable enough for larger companies to pursue. House painters might add a cabinet painting or refacing business to their companies as one offensive strategy of brand building. They can do this by buying a small cabinet business or training or hiring internal staff.
Adding a new product or service line, even if it only breaks even, can help you pay overhead costs and reduce the percentage these costs contribute to your core business, increasing your profits.
Offering expanded products or services that aren't profitable might position you as a more full-service provider and help you come to be seen as an expert or authority among your target customer base.
Another way to expand your market is to pair with complementary businesses using referral programs. For example, a banquet hall could create partnerships with DJs, photographers, florists and limo companies. These offensive tactics in strategic management expand the role and value of the banquet hall.
