ABSTRACT
This chapter analyzes competition strategy. It also focuses on how companies choose to position themselves in order to compete. The chapter summarizes a variety of competitive positions. It then describes alternative competition strategies or competitive ploys ranging from the proactive and the aggressive through the defensive to co-operation and partnership. The competitive position will depend upon the relative strength of the enterprise within its competitive environment; and on its capability and its sources of competitive advantage. Proactive, offensive, or attacking strategies are predicated upon an aggressive determination to shape the nature of the competitive environment in the interest of the enterprise; and where possible to disadvantage competitors. Drucker describes the objective of the strategy as being to establish leadership in a new market or sector created or developed by the enterprise. A basic defensive strategy is that of protecting existing segment provision.
