Seven reasons why firms carry out tactical withdrawal?

Like in military, business also does tactical withdrawal either from a particular market or from a specific product once in a way. The central purpose is to improve the future prospects of the firm in contrast with the current position that may be untenable. There are seven reasons intertwined with this purpose:

1. As part of the planned withdrawal, retreat as business tactics is made so that the firm can be in comfort zone where it has good knowledge of the terrain and ready availability of resources in the form of men & methods that it can deploy to withstand intense competition

2. Done in order to improve the quality and features of a specific product either by innovating or improving in such manner that the product can be re-launched with gusto to beat competitor’s products.

3. Buying time so that firm can study the market leisurely to observe how market dynamics work in the absence of the withdrawn product. Secondly re-assess the future market position to facilitate a fresh foray into the market place armed with an improved product or an improved distribution method or both.

4. Fool the competitors to think that the firm is finished with it so that they relax and take no further action. This provides the firm with breathing space

5. Make a feigned withdrawal to lure the enemy to move forward and be ambushed by the marketing staff of the firm ending in a merciless massacre of the enemy

6. Relocate the battle to another territory or terrain that is much more advantageous to the firm than the present one

7.  Elude the attacking competitor so that current level of resources can be saved for future action against the competitor at the time and place chosen by the firm.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist