Hedgehogging

Hedgehogging is a defensive strategy employed by companies to protect their market share and profits. It involves intentionally slowing down or halting the growth of a product or service, often by reducing investment or limiting features, to prevent competitors from gaining a foothold in the market. This strategy is particularly common in industries with high barriers to entry, such as technology and pharmaceuticals.

The term "hedgehogging" originates from the animal's defensive posture, where it curls into a ball to protect itself. Similarly, companies using this strategy protect their core business by making it difficult for competitors to enter or expand within their market. This can be achieved through various means, including patenting key technologies, maintaining strong brand loyalty, and leveraging economies of scale.

Hedgehogging can have both positive and negative effects. On one hand, it allows companies to maintain a competitive advantage and protect their market share. On the other hand, it can stifle innovation and limit consumer choice. Critics argue that this strategy can lead to monopolistic practices and hinder overall market growth.

In recent years, there has been a growing debate about the ethics of hedgehogging. Regulators and policymakers have begun to scrutinize companies' practices, leading to increased scrutiny and potential legal consequences for those found to be engaging in anti-competitive behavior. Despite this, hedgehogging remains a prevalent strategy in many industries, reflecting the ongoing tension between the need for market protection and the desire for innovation and competition.