One popular method uses the typology put forward by American academics Raymond E. Miles and Charles C. Snow in their 1978 book, Organizational Strategy, Structure, and Process.
Their market domain is constantly in flux as new opportunities arise and past product offerings atrophy.
They value being the first in an industry, thinking that their “first mover advantage” will provide them with premium pricing opportunities and high margins.
The industry that they operate in tends to be in the introduction or growth stage of its life cycle, with few competitors and evolving technology This strategy entails a decision not to aggressively pursue markets.
Rather than being on the cutting edge of technological innovation, product development, and market dynamics; a defender tries to insulate themselves from changes wherever possible.
In their attempt to secure this stable market they either keep prices low, keep advertising and other promotional costs low, engage in vertical integration, offer a limited range of products, or offer better quality products or customer service.
Individual strategic business units typically have moderate to low levels of autonomy.
[4] For example, a study by Stephen Shortell and Edward Zajac (1990) found the predictions generated by Miles and Snow's typology to be generally accurate.