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Market Defense is the strategic actions that try to minimize or deter threatening activities by existing or potential competitors. Strategic moves can deter all or a few of the potential challengers by making the gain prospects so unpleasant and risky that market share profits are not value pursuing. Deterrence strategies involve the following:
(1) Signaling objectives to defend,
(2) Foreclosing avenues for attack by making barriers to entrance or mobility,
(3) Rising entry costs or investments,
(4) Decreasing market attractiveness by reducing prices.
If challengers cannot be discouraged, then the aim of market defense is to have challengers' moves and reduce the damage.
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