scorched-earth policy
The company adopted a scorched-earth policy by selling its most valuable patents.
Noun: 1. A military strategy: A defensive strategy where a retreating army destroys anything (crops, buildings, resources) that could be useful to an advancing enemy, leaving only barren land. 2. A business strategy: A defensive tactic used by a company facing a hostile takeover, where it makes itself less attractive to the acquirer by selling its most valuable assets (its "crown jewels").
The term describes a drastic, often self-damaging, defensive action taken to deny an opponent a victory or to make a victory not worth the cost. * In a military context, it is a strategy of total destruction to hinder an enemy's advance. * In a business context, it is a specific anti-takeover measure where a company deliberately reduces its own value.
- Military Context:
- The generals ordered a scorched-earth policy, burning villages and fields to slow the invading army.
- Historians debate the effectiveness of the scorched-earth policy used during that campaign.
- Business Context:
- To fend off the corporate raid, the board adopted a scorched-earth policy and sold the company's most profitable division.
- The hostile takeover bid triggered a scorched-earth policy that ultimately left the company weakened.
- The term is often used metaphorically in politics, law, or personal conflicts to describe an extremely aggressive and destructive defensive tactic where one party is willing to ruin everything to prevent an opponent from winning.
- The divorce proceedings turned ugly, with his lawyers employing a legal scorched-earth policy.
- The politician's scorched-earth policy against his critics damaged his own reputation in the process.
- Scorched earth (noun phrase): The resulting condition or the strategy itself. Often used attributively (e.g., , ).
- Crown jewel defense (noun phrase): A more specific term in business for the tactic of selling valuable assets to thwart a takeover, which is a type of scorched-earth policy.
- Burn-it-all-down strategy (idiomatic)
- Self-destructive defense
- Denial strategy (military)
- To burn one's boats/bridges: To commit to a course of action from which there is no return. A scorched-earth policy is a specific, extreme form of this.
- A Pyrrhic victory: A victory that inflicts such a devastating toll on the victor that it is tantamount to defeat. A scorched-earth policy aims to make any victory for the opponent a Pyrrhic one.
The company adopted a scorched-earth policy by selling its most valuable patents.
- the target company defends itself by selling off its crown jewels