Every organization tries to be at the safer side and want it to be risk free from any kind of dangers. The dangers for any organization exist in two types:
1. New entrants
2. Existing competitors
In order to protect, organization use various kinds of defensive strategies (Retrenchment, Divestiture and Liquidation) with the help of which it can be protected by its competitors. Defensive strategies thus play an important role in lowering the risk of any danger. It easily converts the risk and helps to work in an organized manner. It helps in making the sustainable advantage of any organization stable enough so that it can work and gain profits in the long run too. Defensive strategies are thus difficult to apply but once apply; they will help the organization forever. Therefore, it is important for any organization to apply defensive strategies in order to be at the safer side and no new entrants or the existing competitors can thus harm the organization. In order to have long-term sustainability, most of the firms do ignore the short-term profitability. This is in practice now days in order to make an organization strong enough and stable too. Various set of techniques and strategies are included in this in order to make an organization strong enough to compete with the competitors. Defensive strategies helps in making any firm or organization strong enough and it also helps in making it innovative too. Marketers try to adopt various techniques with the help of which they can differentiate their firm with others. They add uniqueness and thus protect their organization too by applying various defensive strategies, when two firms are competing with each other; every firm has some threat from the other one. Therefore, it is mandatory to first build a boundary wall in order to protect your organization from the competitors.
Once defensive strategies are applied, no external source can harm your organization and therefore you can work and can gain maximum potential outcomes. This is the first and an important rule that is being applied by most of the organization to be the first one in the race.
Joseph B. Walker (2003), "Self-defense techniques & tactics", Human Kinetics, pg 189