Definition of non-market strategy

A way to pursue strategic goals through political and social leverage.

Non-market strategy helps groups gain soft power and influence and use them to their competitive advantage. It is developed towards government, press and influential groups.

Through non-market strategies, groups can reshape the rule of the game through laws and regulation. It can also be driven by social pressure, media and education. Tools for non-market strategies are: events, demonstrations, networking, sponsoring, research, publications, but also the consequences of law suits.

Connected to lobbying, nonmarket strategies are more global and long term focus. Managing nonmarket strategies invite firms to care about their reputation, values and social impact.

Example

To protect its market position in France in the period of liberalization, EDF managed to defend the vision and the interest of a large integrated utility firm. Thanks to its powerful network and influence, in Paris but also in Brussels, EDF has achieved not be divided and split, like other European firms.

This defensive strategy helped the firm to protect its position on its domestic market. In the same time on a more offensive way, allowed EDF to gain market shares and assets in newly open markets that were looking for new competitors. [1] 

See

Article: Fresh mix of politics with big business

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