What's the name of bus. strategies, where a company add branch in a place in order to protect it's customer?

What's the name of bus. strategies, where a company add branch in a place in order to protect it's customer?

For example Company A has a bigger market share and customer than company B.

Company B open in X City. Company A see that to open in X city is not really profitable, but they open it, in order to protect their customer that located in X city to move into B company.

What's the name of the strategy used?

Thanks in advance.

1 Answer

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  • 9 years ago
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    never heard of that - but such an activity would be defensive or protective. I don't want to quibble but don't see how that would count as a strategy - it might be a response or an activity or a tactic but when you think of what strategy is all about - then doing something non profitable for no other reason than to protect yourself is not good business, and is no form of strategy (imho).

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