Counteroffensive defense is a defensive strategy that entails responding to a business competitor’s offensive tactics. The response is usually a counterattack wherein the victim firm tries hampering its competitor’s major business segment(s), forcing the competitor firm to spend considerable time and resources to recover that particular aspect of the business. This keeps the competitor deviated, and also the move serves as a warning.
Let’s understand this with an example. There are two motorbike manufacturing companies – one makes higher-end bikes; and the other commuter motorcycles. The commuter vehicle producer now considers foraying into the higher-end bike segment, turning into a potential threat to the high-grade bike manufacturer. If the premium bike manufacturer retaliates by launching its own commuter bikes, the move will be seen as a counteroffensive defense.
Primary Counteroffensive Defense Tactics
Besides venturing into new business domains or product categories, companies may resort to counteroffensive defense strategies such as cutting their current product prices, intensifying existing promotion plans, enhancing products, and expanding their geographical reach. The targeted company may implement one or more of these strategies based on the attacker’s challenge or weakness.