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PRESENTERS
17. Discuss strategies that can be put in place by an organisation of your choice so as to adjust to
the growing and changing needs of the environment.
27. Distinguish between offensive strategies and defensive options and highlight situations under
which these strategic moves can be taken.
Question 10b.
Fragmented markets are markets where no single company or organization has
adequate influence to move the industry in a specific direction.
Characteristics:
• Characterized by many small to medium businesses eg the take away industry, grocery
• No one business has enough influence to move the industry
• Low entry barriers
• High level of unlicensed product e.g. food being sold in the streets(uz gate),
clothes(mabhero)
• Low level of production innovation
• No real economies of scale
Strategic options that can be adopted in this market
• Branding e.g. KFC, RocoMamas, e.t.c. in the take away industry
• Niche strategy e.g. a hotel may focus on only tourists i.e. rather than mass
marketing
• Focusing on limited geographical area e.g. super markets, convenience
stores , shoe repairs
• Low cost strategy e.g. bakers inn
• Operating standardized outlets in many cities e.g. Enbee
Question 17
A company like Coca Cola implements strategies to adjust to the changing needs of the
environment. Such strategies help the organization to adapt quickly once changes start
occurring. Such strategies can be to:
Continuously innovate
By doing so, an organization is able to stay prepared for future changes which can lead to
increase in revenue if changes support the new products. This also encourages adaptability to
change as innovation would come easily to the organization.
On top of the first coke drink variety, Coca Cola introduced diet coke, started Coke Studio and
made mobile vending machines.
• Over-communicate
By increasing communication with all members of the supply chain, the organization is
able to stay up-to-date with most changes occurring in its environment which can help it
to adjust.
Coca Cola employs extensive advertisement to increase awareness of its products to its
customers and other stakeholders.
Differences
• Companies pursuing offensive strategies directly target competitors from which they want
to capture market share. In contrast to offensive strategies, which are aimed to attack your
market competitive advantage to keep competitors at bay. Defensive strategies are used to
discourage or turn back an offensive strategy on the part of the competitor.
• Objectives of offensive are to gain more market share, maximize sales and to destabilize
competitors so as to gain competitive advantage. Whereas the objectives of defensive
strategies are to maintain the existing markets, safeguard the existing levels of competitive
advantage, keep up top position in local and existing markets and maximize profitability.
Situations for Offensive strategies
• When a firm wants to attack market competition, in a competitive industry.
• When the player wants to dominate the market ie to increase market share.