Offensive competitive strategy is a corporate strategy where the company or the business entity tends to pursue the changes in the market in a vigorous and active manner. The major objective behind this strategy is to adopt the changes in the market in a rapid manner so that the business entity or the company can compete well within the market. In order to pursue market changes and to conduct a competitive analysis the companies run a spate research and development department that is also called as R&D department. Most of the companies following offensive competitive strategy invest a lot in their R&D department so that they can compete well in the market.
Most of the companies that actively follow and analyze other companies in order to occupy them as a part of their growth and use them as a fuel for their growth used offensive competitive strategy. These kinds of firms are known for their risk taking ability and are always high risk as compared to those companies that don’t take any risks and tend to play defensive. The companies that are following offensive competitive strategy are considered to be high risk because they tend to be fully invested for each day of the entire accounting period and this feature of these companies can tend to be a risk factor and can prove fatal when the market slows down in any case.
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