Strategy is Partly Proactive and Partly Reactive

A company’s actual strategy is typically a blend of two: 

(1) Proactive strategy or planned strategy.  

(2) Reactive strategy to adopt changing circumstances or Reactive strategy to unanticipated developments and fresh market conditions

In other words, a company uses both proactive and reactive strategies to design growth strategy of the company. Example- kargil war, India planned with tank and tope, but there on height so, Indian soldier had to get back and call Indian army

 

Proactive Strategy 

Proactive actions are on the part of managers to improve the company’s market position and financial performance

• Proactive strategy is a deliberate game plan of management

• Proactive strategy is based on past performance and procedure

• Proactive strategy is based on set standard

• Proactive strategy is intentionally made for buyer’s patronage

• Proactive strategy is pre planned strategy

• Proactive strategy is largely based previously initiated actions and business approaches 

 

Reactive Strategy 

• Reactive strategy is adaptive reaction to changing circumstances

• Reactive strategy is adopted when past performance and procedure does not work

• Reactive strategy is adopted when set standard does not work because of change

• Reactive strategy is adopted to adjust with changing mood of customers and market  

• Reactive strategy is adopted when pre planned strategy fails and pushed to wall.

• Reactive strategy is adopted to match with unexpected turn of a company’s strategy and it hits a stone wall

 

Some kind of strategic reaction or adjustment is required. Every strategic move cannot be proactive planning and deliberate management design. Things happen that cannot be fully anticipated or planned for.

 

Hence, a portion of a company’s actual strategy is always developed in response of unexpected events. Reactive strategy is also needed to accommodate the emerging changes in the economy. Crafting a strategy, thus, involves stitching together a proactive/intended strategy and then adapting first one piece and then another as circumstances surrounding the company’s situation change or better options emerge—a reactive/adaptive strategy