To fend off a competitive attack, defensive-minded companies

Question

Quizplus · Accepted Answer

Using innovation and intellectual property protection to obtain product line exclusivity can help a company fend off competitive attacks because it forces competitors to use other distribution channels, making it difficult to compete directly with the company's products. This strategy also allows the company to maintain its current product features and models, avoiding the need for unproductive efforts and ensuring profitability levels remain stable. Avoiding warranties and competitor's clients may not be effective defensive strategies, while avoiding volume discounts or better financing terms for suppliers could negatively impact the company's supply chain and lead to decreased profitability.

To Fend Off a Competitive Attack, Defensive-Minded Companies