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Competitive struggle: strategies and methods of confrontation

Ministry of Education and Science of the Republic of Kazakhstan

University of International Business

Department "Management"

COURSE WORK

On the topic:"Competition strategy".

Completed by the student:

Kochetygova Anastasia

gr. No. 330

Checked by the supervisor

Borovskaya I.L.

Almaty, 2011

Introduction

Conclusion

Bibliographic list

Introduction

1. Relevance of the research problem

The world market places very strict demands on the competitiveness of firms. International business faces a number of difficulties: cultural differences, problems with exchange rates and currency transfers, taxation and pricing difficulties, product adaptation to the requirements of foreign consumers, difficulties in choosing the optimal organization structure for conducting international business, and high political risk. At the same time, the main principles of the strategy of the competitiveness of firms is a competitive advantage resulting from the improvement of technology, the introduction of innovations, and financing of R&D. Also, a competitive advantage is often created in market niches in which large competitors did not show interest due to their insignificant profitability and low capacity at the time of development.

Competition is the rivalry between people, firms and territories and organizations interested in achieving the same goal. And this is the cheapest and most effective method of economic control, it costs the society minimal costs. Such control is a kind of force that pushes the manufacturer to reduce production costs and prices, to increase sales, to fight for orders and the consumer, to improve quality.

Companies can provide greater customer value by offering customers lower prices than competitors for similar goods and services, or by offering substantial benefits that justify higher prices. Thus, marketing strategies must take into account not only the needs of customers, but also the strategies of competitors. The first step in this direction is competitor analysis. The next step is to develop specific competitive strategies that allow the company to take a strong position in the fight against competitors and give the strongest possible advantage over them.

In the modern world, and in our country in particular, the topic of competition and competitive strategies is very relevant, since “healthy” competitive relations are just beginning to develop in Kazakhstan, and, therefore, in order to enter the market and survive on it, a firm or an enterprise needs to develop strategic plans and apply competitive strategies.

Companies can achieve competitive advantage by developing offerings that meet the needs of their target customers more than those of competitors.

2. Object and subject of research

The object of research in this work is such a phenomenon as competition.

The subject of research of the course work is modern competitive strategies.

3. Goals and objectives of the study

Purpose of the study:

Expand and analyze the concept of "modern competitive strategies", identify their main types and requirements for them and determine their effectiveness.

Research objectives:

1. find and analyze the concept of "modern competitive strategies"

2. to identify the main types of competitive strategies and the requirements for their implementation. Give examples of the application of strategies.

3. to determine the effectiveness of competitive strategies in market relations.

The essence, forms and methods of competition

The interaction between supply and demand and the functioning of the price mechanism take place in the market in a competitive environment between buyers and sellers. Competition (translated from Latin means "converge", "collide") is economic rivalry, the rivalry of isolated producers and consumers for maximum income. A. Smith figuratively called this process “ invisible hand»The market, thanks to which the selfish motives of individual individuals to obtain their own economic benefit are turned for the benefit of the whole society, serve the forward movement of the economy.

In the broadest sense of the word, the concept of "competition" is used in economic science as an element of the market mechanism that ensures the interaction of subjects of the market economy in the process of production, purchase and sale of goods, as well as in the sphere of capital investment.

In a narrower sense, the concept of "competition" is used as rivalry within an industry, as rivalry between individual firms in different industries or individual producers for more profitable terms management, for maximum profit. 1

Competition is considered the most important element in the regulation and development of the market as an economic system.

The participants in the competitive struggle are, first of all, firms and commercial organizations that compete with each other for sales markets, Better conditions purchases or sales, for resources, both material and intellectual, compete in the field of R&D ( scientific research and R&D), etc. On the other hand, competition is inherent in all living organisms, including people - they compete in the labor market, offering their labor, their skills and abilities, for different wages, people compete with each other within organizations, for the opportunity to occupy a certain position or the opportunity to complete a certain task, for the opportunity to possess any property, the opportunity to receive free education etc. Competitive struggle is inherent in various groups, associations and entire countries. Each of which seeks to get ahead of other countries (or catch up with those that have gone ahead), in the struggle for better conditions for their citizens and for domestic entrepreneurs. Thus, competition is an integral part of human life.

The essence of competition lies in the wide dispersal of economic power within the two main aggregates that make up the economy - enterprises and households. When there are a large number of buyers and sellers in a competitive market, no buyer or seller can demand or supply enough of a product to significantly affect its price. Consider this thesis from the side of sales, or supply, in the commodity market. It is worth noting that when the product is unusually small, the price goes up. For example, an unseasonal frost in Kazakhstan can seriously reduce the potato crop and sharply increase the price of it. Likewise, if a single producer or a small group of producers acting together are able to somehow regulate and constrain the total supply of a product, then the price can be increased to the benefit of the seller.

The important role of competition in the mechanism of market functioning is determined by the functions that it should perform.

First, competition must ensure the assertion of consumer sovereignty, as well as the implementation of the optimal combination and efficient use of factors of production. In other words, competition should ensure the adaptation of production to changed conditions, i.e. to the preferred interests of consumers; and to new production methods. This is the adaptive function of competition.

Secondly, competition should ensure such development that the desire of enterprises to maximize profits contributes to technological progress, i.e. competition has the function of ensuring progress.

Third, competition has a distributional function. It must create such conditions when the distribution of income from production factors is carried out depending on their productivity. Such a distribution is the best basis for stimulating an increase in production efficiency and thereby ensures the maximum growth in the volume of production, i.e. volume of supply.

Fourth, along with the listed economic functions aimed at increasing production efficiency and increasing welfare, competition also performs the function of ensuring freedom of activity. The fact is that in the market system, the activity and the choice of market participants are subject to restrictions, but competition presupposes, on the one hand, the presence of an alternative for any activity, on the other hand, it opens up freedom of action for the subjects of market relations.

The range of methods that can be used by competing firms is quite wide. These methods can be divided into price and non-price methods. 2 The price includes: the use of monopoly high or monopoly low prices in order to oust a competitor and conquer the sales market; the use of price discrimination, especially in the provision of services (services of doctors, lawyers, hotel owners, transportation of perishable goods), etc.

The main methods of competition in modern assumptions are non-price ones, i.e. competition is carried out by increasing the technical level of products, the quality of goods, improving the assortment while maintaining approximately the same price. These methods include advertising, software services service, sale on credit, leasing, benefits for regular customers, use of trade marks and trade marks of companies.

Unfortunately, sometimes forceful methods of competition are used (depriving a competitor of raw materials, sales markets, buying up patents, seizing labor markets), as well as methods prohibited by law (arson, killing dangerous competitors, economic espionage, bribery and blackmail, dissemination of knowingly false information about competitors, counterfeiting trade marks, etc.).

At the same time, the use of various methods of competition will not bring success, will not make competition civilized and effective, if the economic center of society - the state - does not take measures to ensure normal conditions for the functioning and protection from monopoly, the strengthening of which negatively affects the development of the market economy. The implementation of competition policy and regulation of monopoly activities by the state is manifested in the formation and improvement of antimonopoly regulation, including antimonopoly control over monopolized markets, an organizational mechanism (support for small businesses, simplification of the licensing mechanism, liberalization of markets, etc.) and antimonopoly legislation.

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Competitive strategies

The main tool for managing the development of a company and the basis of strategic management is strategy.

Competitive strategy is the company's desire to take a competitive market position in the industry - that is, on main arena where rivals are fighting. Enterprise strategy is an integrated model of actions aimed at achieving the goals of the enterprise. In form, it can be a document. In essence and content, it is a set of decision-making rules used to guide the activities of an enterprise. The variety of strategies used in strategic management makes it very difficult to classify them.

Competitive strategy seeks to achieve a stable and advantageous position that allows the company to withstand the onslaught of the forces that determine the competitive struggle in the industry.

To be successful in today's economy, a firm must focus on its competitors, i.e. avoid their strengths and seek them out weak spots to then launch a marketing attack on those weaknesses. A firm doesn't have to be the best in every area of its business. You can focus your efforts in several areas, achieve excellent results in them, and even lead, and in the rest be "on the sidelines."

The choice of a competitive strategy by a company's marketers is determined by the interaction of three factors:

1. The competitive position of the firm. (whether she is a market leader, a leader contender, a follower, or a niche dweller)

2. A strategic challenge. (whether the firm seeks to dominate the market or expects to occupy a convenient profitable niche)

3. The market situation. (Is the firm in an early growth phase or in a late maturity phase). 3

Economists identify the following main competitive strategies that firms use. All these methods of competition can be applied simultaneously, but usually the firm relies on one method, using others as additional.

1. Strategy to minimize costs.

It lies in the fact that an organization with minimal costs, with other equal conditions provides more high profitability sales versus competitors. Such an organization has the opportunity to win a significant market share due to greater profitability, and as a result of lower prices for manufactured goods.

Factors favoring the application of a cost minimization strategy:

the industry produces a fairly standardized product and the possibilities for differentiation are limited;

demand is price elastic;

the likelihood of switching consumers of a product to other products is high.

The minimum costs can be achieved to a large extent due to properly built relationships with suppliers. But you need to understand that in this case, the organization becomes highly dependent on its suppliers and their terms of delivery, as well as on their well-being in the market. However, if the firm is a large buyer and its market share is significant, it can influence suppliers to some extent by obtaining more favorable terms of delivery.

An organization applying a strategy of minimum costs must carefully and constantly monitor any changes in industry technologies in order to select the most effective and economical ones for subsequent implementation in their own production. The company is obliged to carry out constant modernization or even complete replacement of production equipment in the shortest possible time, so that it is not outstripped by competitors.

The advantages can also be lost if competitors master the production of substitute goods that are not inferior in quality to the organization's goods but with significantly lower production costs, or more preferred by buyers. As a result, the organization must constantly monitor the market in order to study and timely identify new customer needs, as well as make appropriate adjustments to the goods produced, in order to fully meet the needs of customers.

A vulnerability in the strategy of minimizing costs is the size of the utilization of production capacities and its uniformity. A 95% utilization of production equipment is considered optimal. Since at a higher load, the wear of equipment unjustifiably increases, at a lower load, the cost of goods and services significantly increases, due to the fact that part of the capital invested in this equipment is not used, i.e. idle equipment increases the costs for its storage and maintenance of its performance, without making a profit, moreover, the equipment becomes obsolete and eventually becomes useless altogether.

The main weakness of the strategy is its focus on the production of a certain product, i.e. insufficient level of differentiation of products and services. This is because maximum effect and scale is achieved with significant production volumes. In other words, the presence of a highly diversified assortment of manufactured goods does not always make it possible to achieve minimum costs when producing each product separately.

The disadvantages inherent in the cost minimization strategy can be partially or completely eliminated by increasing production flexibility.

2. Strategy of differentiation.

The differentiation strategy implies the manufacture of products that are functionally not very different from each other. And the breadth of the assortment is achieved due to minor changes in color, shape, technical characteristics etc. This allows the firm to serve a larger number of consumers, by providing the buyer with a wide choice and, as a result, more complete satisfaction of their needs.

"Consumer value of a product" is the ratio between the price of a product and its subjective value for a specific consumer. The client makes a purchase only when the value of the product, in his opinion, exceeds the market price of the product or service. At the same time, it should be canceled that for one person, functionality is of maximum importance (the presence of a large number additional functions), for the other - dimensions and specifications, for the third - color, etc. Consequently, the more modifications of the product there will be, the higher the likelihood that it will be liked by a larger number of potential buyers.

Differentiation is of two types: horizontal and vertical. When the price of a product or service is horizontal and average level consumer income remains virtually unchanged. In this case, product differentiation should not be significant: in color, shape, etc. Vertical differentiation assumes that both prices and the average income of consumers are different. This situation allows the organization to gain access to various groups of customers due to significant differences in functionality, price-quality ratio, manufacturing of goods taking into account individual characteristics client, etc., which increases the volume of sales.

On the one hand, the more product modifications a firm produces, the more product it can sell, but on the other hand, the higher its cost per unit of product. Since in the production of small batches, a large number types of products can not always be used all the advantages of economies of scale.

It is worth applying the differentiation strategy in cases where demand is not price elastic (predominance of non-price competition) and the industry market has a complex structure. It is in such conditions that it has the greatest chances of success.

The main weakness of this strategy is the difficulties arising in the sale of goods, since they are associated with high costs for non-price competition (advertising, image creation, the fight against imitating goods, etc.).

3. Focusing strategy.

The focusing strategy is aimed at meeting the needs of consumers in a narrow segment of the market, which is characterized by the presence of special needs different from the average, i.e. capturing a specific niche in the market and making a profit by fully meeting the needs of this niche. This strategy can be most successfully applied in a situation when:

there are enough large groups consumers whose needs for a product for a specific purpose differ significantly from the majority of consumers;

there are small groups of potential buyers with non-standard needs that are not fully satisfied by the existing supply of goods and services on the market;

the organization's resources are small, which in turn does not allow serving large groups of potential customers with standard needs.

When implementing this strategy, difficulties may arise, for example:

it may happen that differences in the features of products or services that are especially significant for buyers in the target market segment will disappear under the influence of various factors (change of fashion, the appearance of a more functional product, obsolescence of the product, etc.);

a significant decrease in prices for standard products is possible, and as a result, a change in the consumer value of a standard product, which will lead to a switch of consumers target segment for standard products;

competitors operating in the market can also differentiate the manufactured product, which will also increase the likelihood that some of the potential customers will prefer substitute products.

4. Strategy of innovation.

This strategy implies the acquisition of competitive advantages through the development and implementation of fundamentally new products, technologies or the satisfaction of existing conscious or unconscious customer needs in new ways.

Enterprises applying an innovation strategy should significantly increase R&D costs (research and development activities) to develop radically new materials, goods, technologies in different areas activities of enterprises and society. As a result of the introduction of R&D products, enterprises can get the opportunity to increase profits dozens of times, by increasing the profitability of sales or creating a new segment, or even a new consumer market.

Statistics of economically developed countries show that innovation activity is characterized, on the one hand, by a high level of risk (as a rule, out of 100 ideas go through all stages from idea to implementation, no more than 5), on the other hand, a high level of profitability for successfully implemented ideas, sometimes more than 3 times the average return on investment.

5. Rapid response strategy.

A somewhat separate place is occupied by the rapid response strategy, therefore, it is not always included by the authors in this classification.

Firms implementing a strategy of immediate response to market needs are aimed at the fastest possible satisfaction of emerging needs in various areas of business. The main principle of behavior is the selection and implementation of projects that are most profitable in the current market conditions. Enterprises that rely on a quick response are ready for an immediate reorientation of production, a change in its scale, in order to obtain maximum profit in a short period of time, despite the high unit costs determined by the absence of any specialization of their production.

The advantages of the strategy:

obtaining super-profits due to the high price of scarce products;

high interest of consumers in purchasing goods;

a small number of substitute products;

creating an image of an enterprise ready to sacrifice everything for the immediate satisfaction of the emerging needs of customers.

The necessary conditions:

"Entering" and "exiting" the industry is not difficult;

a small number of competitors;

small flexible non-specialized enterprise with high degree differentiation;

high degree of staff mobility;

marketing service focused only on highly profitable and not long-term projects.

Strategy risks:

high unit costs;

lack of long-term prospects in a particular business;

lack of guarantees in making a profit;

high risk of bankruptcy.

This strategy is the most "beloved" by imitating organizations that counterfeit products from world famous manufacturers.

6. Strategy of open confrontation

Major market players usually prefer the open collision strategy. The first two numbers of the market, offering a similar product, boldly get involved in the struggle in the same market for the same consumers.

The open collision strategy is very suitable for the second player in the market. Need to run New Product to the market at a time when the market leader is not able to give an adequate answer. It is important at first to set the prices for the new product higher than the prices of the leader. This will allow you to somewhat postpone the moment of retaliation and build defensive structures around the acquired clients.

7. Sequential capture strategy

But without clear competitive advantages, an attempt to outplay a major competitor “on his field” is doomed to failure. A more reasonable strategy seems to be the sequential capture of regional markets or individual sectors.

The goal of this strategy is to gain a significant share in small sectors instead of a modest share in the entire market. This dominance will make these sectors less attractive to competitors. By linking these sectors together and using economies of scale, one can also think about the position of the leader in the entire market.

Example. In the late seventies of the twentieth century, Canon instead of a general attack on Rank Xerox in the UK concentrated all its resources in Scotland. Having won 40% of the Scottish market, Canon went on the offensive in other parts of the UK. This is an example of applying a strategy of sequentially capturing regional markets or individual sectors.

8. Raid strategy

Businesses that are outnumbered by their main competitors tend to use a raid strategy. In this case, there is a struggle for a certain category of consumers. Having chosen a group of consumers where the positions of competitors are weak, it is necessary to attack in this direction (price reduction, Additional services consumers, etc.). If competitors in response will throw significant resources into this direction, then one must be ready to retreat and think about striking another place.

Raid-based businesses are constantly looking for market niches that are unattractive to market leaders. Very often, the reason for the dissatisfaction of consumers is that the products offered by the leaders are of too high quality, which is reflected in the price of these products.

The choice between a strategy of open clash, a strategy of sequentially capturing regional markets or specific sectors, and a strategy of forays is made with the help of the long-term and medium-term goals of the enterprise and the ratio of enterprise size to market size.

Only large enterprises with sufficiently strong market positions can resort to the strategy of open confrontation. The strategy of sequential capture of regional markets or individual sectors allows not to scatter resources, but to achieve superiority in an important direction.

Typically, an enterprise should opt for a foray strategy. As the company grows and the company's position in the market strengthens, it is possible to change the strategy.

In practice, many "strategies" of enterprises are based on numerous assumptions about prices, costs, inflation, exchange rates, etc. Such forecasts are rarely accurate. Understanding the competitive forces at work in the marketplace can influence the choice of the right enterprise strategy.

The main advantage of a large enterprise is significant resources. This makes it possible to wait out short-term losses in the competitive struggle in the market and strike back.

In many markets, economies of scale have a significant effect on the bottom line. But the size of the enterprise is not always a boon. Large enterprises tend to be bureaucratic, slow and short-sighted. People who are not interested in any improvements come to the management of such an enterprise. This threatens to lose its leading position in the market.

Unknown brand name it is very difficult to replay a well-known brand in an open clash. The consumer, as a rule, remains faithful to the old trademarks to which he has long been accustomed. Improving the level of service can retain many consumers.

9. Making it difficult for competitors to enter the market

Making it difficult for competitors to enter the market is another way an enterprise protects its customers.

The enterprise must be well aware of its weak points, which can become the object of attack by competitors. It is better to attack yourself by offering the market a new product than to wait for competitors to do so. But you need to be careful when doing this.

Very often, enterprises launch an attack on competitors without any advantage. But the success of attacking actions is impossible without superiority in quality, reliability, price, advertising, etc. You must have some advantages.

10. Policy of imitation of competitors

There is nothing wrong with imitating your competitors. But then a huge number of products with subtle differences for a simple consumer appear on the market. Therefore, the company should think about actively using its advantages in order to emphasize its difference from competitors.

Due to the fact that enterprises adhere to a policy of imitating competitors, the consumer cannot identify significant differences between the products and is forced to make a purchase decision based on price alone. Therefore, the enterprise must create some kind of differentiating factor that will distinguish the products of this enterprise and for which the consumer is willing to pay additional money. This will allow the company not to get involved in a race with prices.

If an enterprise seeks to attract customers for whom the most important thing is price, then when a competitor appears with more low prices there is a loss of customers.

Specific strategic alternatives

In addition to the considered basic strategies, alternative ways of firms' behavior in world markets are also used. Consider a number of specific strategic alternatives that are being used by companies in an international context:

1. creation of wholly owned subsidiaries;

2. the creation of joint ventures. Joint ventures provide business participants with the following benefits: partners can complement each other and thereby reduce the risk associated with doing business; the joint venture can provide quick access to distribution networks; joint ventures are easily adaptable to changes in the external environment;

3. franchise agreement (franchising). A franchise agreement provides a number of advantages, in particular the following: provides the provider of the franchise with income, and the recipient with a product (service) that has already won a place in the market; allows the franchise company to grow rapidly without significant capital investment; Eliminates some of the management coordination needs needed to cope with a large organization - franchised companies manage themselves; is a suitable strategy for involving small firms, while the risk for these firms when buying a franchise is significantly less than when independently organizing production;

4. outsourcing - the transfer of certain business processes or production functions by an organization to the service of another company specializing in the relevant field. At the same time, there is a decrease in the cost and risks of implementing the business process; increasing the quality of products and services; freeing up internal resources of the company for other purposes;

5. offshore production. Offshore production is advisable to use in cases when: products require significant costs due to large volumes of unskilled labor; the weight of the product is relatively small in comparison with its cost (necessary to reduce transport costs); low tariffs for raw materials and energy; the products are standardized and have a standard production process, so product quality control is facilitated. 4

Application of competitive strategies on the example of the company "Becker and K"

Let us consider the application of competitive strategies using the example of Becker & Co.

The Kazakh-German joint venture "Becker and Co." in the form of a limited liability partnership was established in early 1991.

Currently, the company "Becker and K" is one of the leaders in the Republic of Kazakhstan. The company carries out the production and sale of meat, bakery, confectionery, culinary products, frozen semi-finished products, branded beer "Becker Bier", as well as the provision of restaurant services.

The quality of the products manufactured by the JV LLP "Becker and K °" is marked by high awards received at exhibitions and competitions held in our country and abroad.

Among them - the prize of the President of the Republic of Kazakhstan in the category "The best enterprise producing goods for the population."

In addition, the company "Becker and K" is the leader among the manufacturers of finished products in Almaty.

Organization history

Becker & Co Limited Liability Partnership was established in early 1991. The Ministry of Finance of the Republic of Kazakhstan issued the company registration certificate No. 6.

In 1991, LLP "Bekker and K" allocated a plot of land with an area of 0.78 hectares in the city of Almaty at the corner of Rozybakiev - Satpayev streets for the construction of a complex of administrative and industrial buildings. In 1992, construction began, and in 1994 the first stage of the complex was commissioned. The area of the first stage was 3800 m2, it housed an office, a brewery, a restaurant "Prussia" and a sausage shop. At the end of 1994, the brewery was put into operation. Since January 1995 the restaurant "Prussia" has started to work, since April 1996 - a sausage shop.

In 2000, the phased commissioning of the second stage with an area of 3800 m2 began. Currently, the building houses a new meat processing shop, a bakery, a frozen semi-finished product shop, a cookery, a supermarket, a Bistro cafe and a staff canteen. The use of high-quality raw materials, which are purchased from Kazakhstani producers or supplied from Germany; modern technologies; ensuring compliance with the production of sanitary and hygienic requirements, the necessary storage conditions for raw materials and finished products; the presence of competent personnel - all this determines safety and contributes to the production of high quality products, customer satisfaction, their commitment to the company and the implementation of the company's Mission: pure products nutrition ".

Implementation of international standards

LLP "Becker and K" has implemented and certified by the internationally recognized certification body BSI, an integrated management system for compliance with international standards ISO 9001: 2008 (Quality Management System), ISO 14001: 2004 (Environmental Management System) and ISO 22000: 2005 ( Food safety management system based on HACCP principles).

In March 2007, LLP "Becker and K" sent a letter The Secretary General UN to Mr. Ban Ki-moon on the company's intention to join the Global Compact and follow ten principles of human rights, labor relations, protection environment and combating corruption and promoting their dissemination in our field of activity. In April 2007, the company received information about the accession of JV Becker and K LLP to the Global Compact and registration on the United Nations Global Compact website. 5

Competitive strategies used by Becker & K:

Market expansion (own bakeries, pastry shops, sale of finished products).

Strategy increased level service (Since 2004, Becker & Co has developed and operates a unified service standard: these are clearly formulated rules for professional communication between store personnel and customers. Starting from the recruitment stage, the company ensures the maintenance of high quality service).

Flank attack. (In a geographical sense: it occupies territories not occupied by Alimpiev, or those territories where consumers are not satisfied with the quality of the services provided; In a segmental sense: it satisfies the needs of consumers not thought out by a competitor).

4. Rapid response strategy (Focusing on the needs of the Kazakh population: introduction of halal and samsa products on sale, industrial production of national horse meat products "Kazy", "Zhaya", "Sur-et", which are in great demand among the indigenous population ).

5. The strategy of sequential capture (first, the conquest of a leading position in the market of meat products, then the development of brewing, bread production, restaurant business).

6. Creation of subsidiaries in full ownership ("Bistro", "Prussia" restaurant, 2 supermarkets).

The food production market in Almaty is quite developed, and the company "Becker and K" undoubtedly occupies one of the leading places on it.

Conclusion

In conclusion of the work, I would like to note that many enterprises make a big mistake by developing a universal strategy for all occasions, regardless of changes in the market and consumer behavior. But each market segment requires a different approach.

The market leader must continually strengthen his position. It is impossible to successfully defend against all competitors' attacks. Therefore, losses in some areas must be offset by gains in other areas.

The enterprise usually faces several competitors. The question arises who to attack first. It is necessary to concentrate all resources to fight against any one competitor in a certain market segment. After achieving success in this direction, such tactics can be applied in the right time and in another segment of the market.

Diffusion of enterprise resources in different directions will not lead to anything good. Therefore, you need to clearly understand the goals and clearly adhere to the chosen strategy.

Very often, the company in the fight against competitors is very straightforward, using only price mechanisms. But in order to emerge victorious in the competition, you need to know and apply in practice the entire arsenal of the considered means.

Competitive strategies are an important and integral part of modern market relations. A firm or enterprise builds its competitive strategy based on its position in the market, i.e. whether it is a market leader, a contender for leadership, a follower, or a niche dweller. Analyzes its competitors and evaluates its capabilities, and only then chooses a competitive strategy suitable for itself.

Each segment is characterized by original consumer behavior, and, therefore, its own competitive strategy, which the best way can realize an enterprise in this segment. 6

Bibliographic list

G. L. Azoev "Competitive advantages of the company." - M .: News, 2008.

N. Yu. Kruglova "Strategic management": Textbook for universities - M .: RDL, 2009.

http://www.bizkiev.com/ - article "Competitive struggle, tactics and strategy"

http://www.malb.ru/ - article "Methods of Competition in Market Conditions"

http://rusconsult.ru/ - article "Strategy and tactics of competitive struggle

Site data http://www.becker.kz/.

1 G, L. Azoev "Competitive advantages of the company." - M .: News, 2008.

2 G.L. Azoev "Competitive advantages of the company." - M .: News, 2008.

3 rusconsult.ru - article "Strategy and tactics of competitive struggle"

– strategy competitive struggle focused on decline ... to maintain its position in competitive fight... Patent (niche) strategy – strategy competitive struggle, consisting in the release ...

Ideas competitive struggle in the works of Western and Russian economists

Coursework >> Economic theory

... competitive struggle in the market economy. Economists identify four main strategy competitive struggle used by firms. 1) "Power" strategy ...

Researching competitors and gaining advantages in competitive fight company

Coursework >> Marketing

Using various attack strategy... Attacking strategy – strategy competitive struggle fight for sales markets ...

Product quality and its role in competitive fight

Abstract >> Marketing

Various attack strategy... Attacking strategy- this is strategy competitive struggle used by a market bidder in fight for sales markets ...

Sooner or later, but the hour will come when your business will be noticed or "noted" by competitors. Even the most successful and well-thought-out business plan can be susceptible to the attack of "colleagues", so the process of business planning for your own development should begin with proactive analysis possible actions competitors aimed at undermining our business.

Most enterprises in the process of business planning concentrate only on their actions (plans and goals, service, quality, sales, advertising, etc.), losing sight of the actions of competitors. All forecasts are based on continuous improvement from year to year in the performance of the enterprise in accordance with some laws. Of course, it's nice to talk about increasing market share enterprises from 15% to 20%, but nothing is said about who will be responsible for such an increase.

The company operates among competitors. It is important not to copy the actions of competitors, but to develop your own strategy that will allow you to surpass your competitors.

All other things being equal, the larger enterprise wins. Typically, the consumer thinks that "big" means "the best." Therefore, in the absence of product information, preference is given to the most common brands.

A large enterprise has more financial resources. Economies of scale are very common in a large enterprise. And most of the enterprises strive to gain a large market share.

But many businesses are ineptly scattering their efforts across the entire market. But the concentration of the company's resources in a certain segment of the market can lead to the dominance of the enterprise in this segment of the market.

Enterprises that have firmly taken their place in the market are very difficult to oust from there. Huge sums of money are spent every year to promote new products. And in 90% of cases, the results are deplorable. Therefore, without securing advantages in a certain market segment, an attack on a larger player with a strong position in the market will not lead to anything good for the attacker.

Many businesses are limited to considering some vague goals (such as "first place in the market") and tactical means (product characteristics, advertising, sales, etc.). At the same time, there is no clear idea of where the enterprise should move and how to get there. The main thing to look at is the resources of the enterprise and their relationship to the size of the market.

Open Encounter Strategy

The open collision strategy is very suitable for the second player in the market. It is necessary to launch a new product on the market at a time when the market leader is not able to give an adequate answer. It is important at first to set the prices for the new product higher than the prices of the leader. This will allow you to somewhat postpone the moment of retaliation and build defensive structures around the acquired clients.

Sequential capture strategy

Raid strategy

Businesses that are outnumbered by their main competitors tend to use a raid strategy. In this case, there is a struggle for a certain category of consumers. Having chosen a group of consumers where the positions of competitors are weak, it is necessary to attack in this direction (lower prices, additional services to consumers, etc.). If competitors in response will throw significant resources into this direction, then one must be ready to retreat and think about striking another place.

Raid-based businesses are constantly looking for market niches that are unattractive to market leaders. Very often, the reason for consumer dissatisfaction is that the products offered by the leaders have too much high quality, which is reflected in the price of these products.

Typically, an enterprise should opt for a foray strategy. As the company grows and the company's position in the market strengthens, it is possible to change the strategy.

The main advantage of a large enterprise is significant resources. This makes it possible to wait out short-term losses in the competitive struggle in the market and strike back.

In many markets, economies of scale have a significant effect on the bottom line. But the size of the enterprise is not always a boon. Large enterprises prone to bureaucracy, slowness and myopia. People who are not interested in any improvements come to the management of such an enterprise. This threatens to lose its leading position in the market.

It is very difficult for an unknown brand to outplay a well-known brand in an open encounter. The consumer, as a rule, remains faithful to the old trademarks to which he has long been accustomed. Improving the level of service can retain many consumers.

Remember the word "service"!

The root cause of the search for a new product is the annoying little things, each of which is not decisive. Research shows that there is no clear link between customer loyalty and customer satisfaction. Brand loyalty arises when the service offered exceeds all expectations.

Service should be a priority for businesses. Then consumers have no reason to look for alternative products.

Competitor imitation policy

There is nothing wrong with imitating your competitors. But then a huge number of products with subtle differences for a simple consumer appear on the market. Therefore, the company should think about the active use of their advantages to emphasize your difference from the competition.

If an enterprise seeks to attract customers for whom the most important thing is price, then when a competitor with lower prices appears, there is a loss of customers.

* * * * * * *

Three ways an enterprise can achieve a competitive advantage

Low prices, differentiation and concentration are three ways an enterprise can achieve a competitive advantage. Choosing one of these paths, you need to clarify your capabilities and analyze the actions of your competitors. A strategy that competitors can easily replicate and refine is rarely successful.

Today's choice of an enterprise is limited by decisions taken several years ago, and future choice depends on the decisions made today. Many business leaders recognize that modern market very different from what it was before. But few of them realize that even more significant changes are coming.

You have to try to see the future before it comes. What is the demographic situation? Which consumer group dominates the market now? How long will this consumer group continue to dominate? What are the trends in the behavior of this consumer group? What technological changes are taking place in this industry and in other industries? The answers to these and similar questions should be the focus of attention at all times.

It is especially difficult to force themselves to think about the future for those enterprises that currently do not experience any problems.

Many businesses make the mistake of comparing their service to the level of service of their competitors. Consumers use as a reference best service that they generally met.

Very often, enterprises try to reduce costs by increasing labor productivity, layoffs, budget cuts, etc., without changing the structure of the enterprise itself. Production is moved to countries with cheaper labor force... But all these improvements are effective as long as they do not affect quality and service.

The most common way to reduce unit costs is through economies of scale. In this case, with significant savings, many enterprises even agree to manufacture components for their competitors.

The restructuring of an enterprise allows you to eliminate a significant part of the traditional costs. This new thinking is usually found in new entrants to the market.

The cost-minimization strategy does not mean that the company offers a standard and inexpensive product.

The enterprise, adhering to the minimum costs, must constantly monitor the development of technology. After all, technological changes can greatly affect the position of the enterprise. A product that is considered standard and inexpensive today may become unnecessary tomorrow.

If several players in the market choose to minimize costs, then the result is likely to be a price war.

Many businesses make the big mistake of developing a one-size-fits-all strategy regardless of market changes and consumer behavior. But each market segment requires a different approach.

Strengthening positions

The enterprise usually faces several competitors. The question arises who to attack first. It is necessary to concentrate all resources to fight against any one competitor in a certain market segment. Once successful in this area, such tactics can be applied at the appropriate time to another segment of the market.

Diffusion of enterprise resources in different directions will not lead to anything good. Therefore, you need to clearly understand the goals and clearly adhere to the chosen strategy.

Competitive strategy is the company's commitment to gaining a competitive market position in the industry. Competitive strategy seeks to achieve a stable and advantageous position that allows the company to withstand the onslaught of the forces that determine the competitive struggle in the industry.

There are six main competitive strategies that firms use:

1. Strategy for minimizing costs (assumes the maximum possible reduction in production costs and sales of goods, which allows attracting the maximum possible number of buyers);

2. Strategy of differentiation (aimed at giving the product specific features that distinguish it from the competitor's product);

3. Focused strategy (focused on buyers with special needs, tastes);

4. Strategy of innovation (this is the creation of growth strategies, new types of products, services or business models that change the rules of the game in the market and generate significant value for consumers and companies);

5. The strategy of rapid response (it involves the rapid adaptation of production to the changing demand in the segment of the sales market served by the organization);

6. Synergy strategy (this is a strategy to gain competitive advantage by connecting two or more business units in the same hands).

Cost minimization strategy.

It lies in the fact that an organization with the lowest costs, all other things being equal, provides a higher return on sales compared to competitors. Such an organization has the opportunity to win a significant market share due to greater profitability, and as a result of lower prices for manufactured goods.

Factors favoring the application of a cost minimization strategy:

The industry produces a fairly standardized product and the possibilities for differentiation are limited;

Demand is price elastic;

The likelihood of switching consumers of a product to other products is high.

An organization applying a strategy of minimum costs must carefully and constantly monitor any changes in industry technologies in order to select the most effective and economical ones for subsequent implementation in their own production. The company is obliged to carry out constant modernization or even a complete replacement production equipment in the shortest possible time, so that competitors do not outstrip it.

The advantages can also be lost if competitors master the production of substitute goods that are not inferior in quality to the organization's goods, but with significantly lower production costs, or more preferred by buyers.

The main weakness of the strategy is its focus on the production of a certain product, i.e. not enough level differentiation of products and services. This is because the maximum economies of scale are achieved with significant production volumes.

Differentiation strategy.

The differentiation strategy implies the manufacture of products that are functionally not very different from each other. And the breadth of the assortment is achieved through minor changes in color, shape, technical characteristics, etc. This allows the firm to serve more consumers, by providing the buyer with a wide choice and, as a result, more complete satisfaction of their needs.

Differentiation is of two types:

Horizontal;

Vertical.

With a horizontal price of a product or service and the average income of consumers practically do not change. In this case, product differentiation should not be significant: in color, shape, etc.

Vertical differentiation assumes that both prices and the average income of consumers are different. This situation allows the organization to gain access to various groups of customers due to significant differences in functionality, price-quality ratio, manufacturing of goods taking into account the individual characteristics of the client, etc., which increases the volume of sales.

It is worth using a differentiation strategy in cases where demand is not price elastic and the industry market has a complex structure. It is in such conditions that it has the greatest chances of success.

Focused strategy.

It is aimed at satisfying the needs of consumers in a narrow segment of the market, for which the presence of special needs different from the average is inherent, i.e. capturing a specific niche in the market and making a profit by fully meeting the needs of this niche.

A focused strategy is appropriate when:

The market is too big to be fully embraced;

The segment is large enough to generate profits and has growth prospects;

The segment is not attractive to many competitors;

A start-up firm has sufficient experience and resources to fully embrace it;

A firm can create high barriers in the segment and protect itself from all five forces of Porter's competition.

The implementation of this strategy is associated with the following risks:

1. there is always the possibility of increasing the level of competition in the segment;

2. there is always a danger that the requirements and preferences of consumers in a segment will spread to the entire market;

3. A segment in the process of developing it by a firm can increase the level of its attractiveness to competitors.

Innovation strategy.

Enterprises applying an innovation strategy should significantly increase R&D costs (research and development activities) to develop radically new materials, goods, technologies in various areas of enterprise and society. As a result of the introduction of R&D products, enterprises can get the opportunity to increase profits dozens of times, by increasing the profitability of sales or creating a new segment, or even a new consumer market.

Statistics of economically developed countries show that innovation activity is characterized, on the one hand, by high level risk, on the other hand - a high level of profitability for successfully implemented ideas, sometimes more than 3 times higher than the average return on investment.

Rapid response strategy.

A rapid response strategy is about achieving success through quick response on changes in external environment(technological, consumer and others). The firm that has chosen this strategy makes every effort to ensure that as much as possible short time adapt products to the market. If it does it faster than its competitors, it will have the opportunity to receive additional profits due to the temporary absence of competitors for the new product (service).

This strategy, in its simplest form, is implemented by imitation firms that counterfeit branded products from world famous manufacturers. In the most difficult case - by firms that have created the appropriate

The advantages of the strategy:

Obtaining super-profits due to the high price of scarce products;

High interest of consumers in purchasing goods;

A small number of substitute products;

Creation of an image of an enterprise ready to sacrifice everything for the immediate satisfaction of the emerging needs of customers.

Strategy risks:

High unit costs;

Lack of long-term prospects in a particular business;

Lack of guarantees in making a profit;

High risk of bankruptcy.

Synergy strategy.

The presence of the synergistic effect and the ability to manage this effect creates a specific competitive advantage, which is realized at the level of the firm as a whole and which, ultimately, manifests itself in different product markets in reducing the level of costs or in purchasing products unique properties... The synergy strategy implies improving the efficiency of activities through the sharing of resources (synergy of technologies and costs), market infrastructure (joint marketing) or areas of activity (synergy of planning and management).

The synergy strategy involves the implementation of related or unrelated diversification of activities, i.e. strengthening positions in the industry through horizontal or vertical integration or penetration into other areas not related to industry production.

Thus, any specific organization must clearly decide for itself what kind of competitive advantage it wants to get and in what area it can really be achieved, given that, in essence, these strategies are alternative.

In the second chapter, two approaches are presented that allow you to identify existing and potential competitors... The activities of competitors were analyzed with the identification of weak and strengths, and also considered the concept of competitive strategy and presented in detail the strategies of competitive struggle.

1. Differentiation is a competitive strategy, following which, an organization concentrates its efforts on creating products and developing a marketing program that differ in their characteristics in better side from competitors. What gives the organization the opportunity to become a leader in the industry for a certain group of products (giving the product special qualities, achieving high values of the quality indicator, etc.).

2. Leadership in full cost a competitive strategy that ensures the organization achieves the lowest production costs and brings the product to the consumer (through the use of the “cheapest” solutions). Thanks to this, it sets lower prices compared to competitors and gains a large market share.

3. Specialization or focusing is a competitive strategy by which an organization focuses its efforts on the production of products targeted at a narrow range of consumers.

4. Diversification is a type of strategy aimed at the release of new products that are not related to the production of the main products of the company, and with access to non-traditional markets. This strategy reduces the likelihood of major failures.

32.Typol. strategies for different. life cycle stages

Life. cycle of Yudanov's org. 1) Violent- large companies with mass production, developed infrastructure and significant research and development base. Violent development stages: Stage 1 - proud lion. " High dynamics of development and precarious situation. Over time, the development of Violent slows down, and its position on the market stabilizes, the "proud lion" turns into "Mighty elephant" ( a company with a well-developed infrastructure, a network of branches). Investing in various promising directions... The last stage is "Hulking hippo" due to the excessive diversification of its activities. Difficult to control. At this stage, Violent must take steps to restore its financial stability, including actions to change the structure of the diversified portfolio. Patents- a company specializing in the release of unique novelties. The patent occupies a narrow market niche and serves non-standard customers. These are large, small or medium-sized firms. According to Friesewinkel, the patents are called "Sly foxes".... The patent firm uses a differentiation strategy - the creation of a product with specific characteristics. The development of the company takes place up to the boundaries of the segment. Further, two possibilities open up before the patent: either to carry out diversification, that is, to master the new kind activity and turn into a violet, or gradually decrease. scale of activity and then leave the market. Due to the narrow specialization of its activities, the patient is highly dependent on the market. conjuncture, which is the weak side of the "cunning fox". Dr. the problem is absorption by the violet.

Explorents- the company, the purpose of the essence of the cat is concluded. in post. the release of radical innovations. These are small innovative firms (start-ups). "First swallows". Feature - intellectual resources, with the help of which innovative products are developed. The explorer does not have enough financial and material-technical support, therefore he is not able to carry out the promotion and large-scale distribution of his development.

Commutants- firms that imitate novelties or offer new types of services based on new products. Mimicry strategies are common in many small companies. "Gray mice". Their activity is mainly communication. with the production of legal copies of products is known. companies, as well as the provision of after-sales services. service of innovative products.

Small firm strategies:"False mushroom" - analogs offered by companies; "Chameleon" franchise; "Wise squeaker" - a small business functions exclusively within the framework of its own. market. niches, "stinging bee" - a small company that produces goods for the larger ones. Strategist. wednesday firms:-saving (market growth has died / firm growth has died), - going beyond the niche (accelerated / died), -search for an invader (died / accelerated), -leadership in a niche (accelerated / accelerated)

33. Features of the company's entry into the international arena. markets and internationalization of its competitive strategy

Subjects of competition: 1) ed. country; 2) countries; 3) countries; 4) regions. Competitive factors: -access to resources (nature, information, finance, human); - population (payment, qualification, cost, number, age and sex structure); -market structure --- strategy. Going international. the market is limited by the following factors, in addition to competitors: 1) Economy. factors (level. eq. development of other countries, market size for the firm's goods, degree of market saturation, etc.); 2) Factors associated with nationality. culture and way of life (consumer tastes, forms of purchases, the ability to use technologically complex goods, etc.); 3) Political. factors (attitudes towards business, as well as the rights, rules and restrictions under which the firm must operate). When a firm starts a risky business overseas, it must receive much more information than it needs to make business decisions domestically.
1. Generally, penetration abroad is more expensive and time consuming than comparable domestic diversification. 2. Differences between commercial and other factors of success, the importance of vague information, differences in tax systems, income restrictions and currency barriers, legal requirements that must be observed in a country, all these circumstances can force a firm to move beyond the role of an exporter and become a member of a local business community. 3. It is likely that the product range and marketing strategy, cat. were successful. on int. market may not be optimal enough or even unsuccessful in foreign markets. 4. High costs of receiving. strategic information about foreign SZH (strategic economic zone) should be taken into account when assessing profitability and formulas and strategies for the internationalization of the firm's activities.
Diversification / internationalization usually achieves the following. goals:
1. Growth in scale / firm size:
a) support growth and avoid stagnation caused by saturation of the company's traditional SZH; b) accelerate the growth that began in the past and is still ongoing;
c) increase the scale / size of the company by distributing activities to SZH with similar growth prospects.

Sooner or later, but the hour will come when your business will be noticed or "noted" by competitors. Even the most successful and well-thought-out business plan can be susceptible to the attack of "colleagues", therefore, the process of business planning for our own development should begin with a proactive analysis of possible actions of competitors aimed at undermining our activities.

Most enterprises in the process of business planning concentrate only on their actions (plans and goals, service, quality, sales, advertising, etc.), losing sight of the actions of competitors. All forecasts are based on continuous improvement from year to year in the performance of the enterprise in accordance with some laws. Of course, it is pleasant to talk about an increase in the market share of an enterprise from 15% to 20%, but nothing is said about who will be responsible for such an increase.

The company operates among competitors. It is important not to copy the actions of competitors, but to develop your own strategy that will allow you to surpass your competitors.

A large enterprise has more financial resources. Economies of scale are very common in a large enterprise. And most of the enterprises strive to gain a large market share.

Open Encounter Strategy

Sequential capture strategy

Raid strategy

Businesses that are outnumbered by their main competitors tend to use a raid strategy. In this case, there is a struggle for a certain category of consumers. Having chosen a group of consumers where the positions of competitors are weak, it is necessary to attack in this direction (lower prices, additional services to consumers, etc.). If competitors in response will throw significant resources into this direction, then one must be ready to retreat and think about striking another place.

Typically, an enterprise should opt for a foray strategy. As the company grows and the company's position in the market strengthens, it is possible to change the strategy.

The main advantage of a large enterprise is significant resources. This makes it possible to wait out short-term losses in the competitive struggle in the market and strike back.

Service should be a priority for businesses. Then consumers have no reason to look for alternative products.

Making it difficult for competitors to enter the market

Making it difficult for competitors to enter the market is another way an enterprise protects its customers.

Competitor imitation policy

If an enterprise seeks to attract customers for whom the most important thing is price, then when a competitor with lower prices appears, there is a loss of customers.