Investment dictionary

OFFENSIVE COMPETITIVE STRATEGY

A type of corporate strategy that consists of actively trying to pursue changes within the industry. Companies that are managed as offensive competitive generally invest heavily in technology and Research and Development (R&D) in an effort to stay ahead of the competition.

Companies that actively look to acquire other firms to fuel growth are often deemed to be using an offensive competitive strategy. These firms are often regarded as higher risk than those that are defensive because they are more likely to be fully invested, which could prove problematic in the event of a market slowdown.