Types of competitive strategies. Competition, tactics and strategy

Competitive strategy is the company's desire to take a competitive market position in the industry. Competitive strategy is aimed at achieving a stable and advantageous position that allows the company to withstand the pressure of those forces that determine competition in the industry.

There are six main competitive strategies that firms use:

1. Cost minimization strategy (involves the maximum possible reduction in the costs of production and sales of goods, which allows you to attract the maximum possible number of buyers);

2. Differentiation strategy (aimed at giving the product specific features that distinguish it from the competitor’s product);

3. Focused strategy (focused on customers with special needs and tastes);

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

6. Synergy strategy (this is a strategy for gaining competitive advantages by combining two or more business units in one hand).

Cost minimization strategy.

The idea is that an organization that has minimal costs, other things being equal, provides a higher return on sales compared to its competitors. Such an organization has the opportunity to gain a significant market share due to greater profitability and, as a result, lower prices for manufactured goods.

Factors favoring the use 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 consumers switching to other products is high.

Minimum costs can be achieved to a large extent through properly built relationships with suppliers. But it is necessary to understand that in this case, the organization becomes highly dependent on its suppliers and their delivery conditions, 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 a certain extent by obtaining more profitable terms supplies.

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

Advantages may 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 are more preferred by customers.

The weak point in the cost minimization strategy is the level of production capacity utilization and its uniformity. 95% utilization of production equipment is considered optimal. Since at a higher load the wear and tear of equipment unjustifiably increases, at a lower load the cost of goods and services increases significantly, due to the fact that part of the capital invested in this equipment is not used, i.e. Idle equipment increases the costs of storing and maintaining its functionality, without making a profit; moreover, the equipment becomes outdated and will eventually become completely useless.

Differentiation strategy.

A differentiation strategy involves making products that are functionally not very different from each other. And the breadth of assortment is achieved due to minor changes in color, shape, technical characteristics, etc. This allows the company to serve a larger number of consumers by providing the buyer with a wider choice and, as a result, better satisfaction of their needs.

There are two types of differentiation:

Horizontal;

Vertical.

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

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

It is worth applying 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 chance of success.

The main weakness of this strategy is the difficulties that arise when selling goods, as they are associated with high costs of non-price competition (advertising, creating an image, fighting imitation products, etc.).

Focused strategy.

Aimed at meeting the needs of consumers in a narrow market segment, which is characterized by the presence of special needs that differ from the average, i.e. capturing a certain niche in the market and making a profit by fully satisfying the needs of this niche.

It is advisable to use a focused strategy when:

The market is too big to cover completely;

The segment is large enough to be profitable and has growth prospects;

The segment is not attractive to many competitors;

A company starting to work in a segment has enough experience and resources to fully cover it;

A firm can create high barriers to a segment and protect itself from all of Porter's five forces of 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 being developed by its company can increase its level of attractiveness to competitors.

Innovation strategy.

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

Enterprises applying an innovation strategy must significantly increase R&D costs (research and development activities) to develop radically new materials, products, and technologies in various fields of activity of enterprises and society. As a result of the implementation of R&D products, enterprises can be able to increase profits tenfold, by increasing the profitability of sales or creating a new segment, or even a new consumer market.

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

Rapid response strategy.

A rapid response strategy involves achieving success through rapid response to changes in external environment(technological, consumer and others). A company that has chosen this strategy makes every effort to ensure that short time adapt products to the market. If she does this faster than her competitors, she will have the opportunity to receive additional profits due to the temporary absence of competitors of the new product (service).

This strategy, in its simplest form, is implemented by imitator firms that counterfeit branded products from world-famous manufacturers. In the very complex version- companies that have created the appropriate

Advantages of the strategy:

Obtaining excess profits due to high prices for scarce products;

High consumer interest in purchasing the product;

A small number of substitute products;

Creating an image of a company that is ready to sacrifice everything to immediately satisfy emerging customer needs.

Risks of the strategy:

High unit costs;

Lack of long-term prospects in a particular business;

Lack of guarantees of profit;

High risk of bankruptcy.

Synergy strategy.

The presence of a synergy effect and the ability to manage this effect creates a specific competitive advantage, which is realized at the level of the company as a whole and which, ultimately, manifests itself in different product markets in the reduction of costs or in the acquisition of unique properties by products. The synergy strategy involves increasing operational efficiency through the sharing of resources (synergy of technology and costs), market infrastructure (joint sales) 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 type of competitive advantage it wants to obtain and in what area this can actually be achieved, given that, in essence, these strategies are alternative.

Chapter two presents two approaches that help identify existing and potential competitors. Analyzed the activities of competitors, identifying weak and strengths, and also examines the concept of competitive strategy and presents competitive strategies in detail.

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

2. Full cost leadership is 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 than its competitors and gains a larger market share.

3. Specialization or focus is a competitive strategy, following which an organization concentrates its efforts on producing products aimed at a narrow range of consumers.

4. Diversification is a type of strategy aimed at releasing new products not related to the production of the company's main types of products and entering non-traditional markets. This strategy reduces the likelihood of major failures.

32.Tipol. strategies for various life cycle stages

Life Yudanov's org cycle. 1) Violents– large companies with mass production, developed infrastructure and a significant research base. Stages of development of violents: stage 1 - proud lion." High dynamics of development and unstable situation. Over time, the development of the violent slows down, and its position in the market stabilizes, the “proud lion” turns into "mighty elephant" ( a company with a widely developed infrastructure and a network of branches). Investing in various promising areas. Last stage – "sluggish hippopotamus" due to excessive diversification of its activities. It's difficult to manage. At this stage, the violent must take steps to restore its financial stability, including actions to change the structure of the diversified portfolio. Patients– companies specializing in the production of unique new products. Patient occupies a narrow market niche and serves non-standard consumers. These are large, small or medium-sized companies. According to Friesewinkel, patients are called "sly foxes". The patent company uses a differentiation strategy - creating a product with specific characteristics. The company develops to the boundaries of the segment. Next, the patient has two options: either diversify, i.e. master the new kind activity and turn into a violent, or gradually reduce. scale of activity and then leave the market. Due to the narrow specialization of its activities, the patient is highly dependent on the market. conditions that appear weak side"sly fox" Dr. The problem is absorption by the violent.

Explerents– the company, the purpose of the present conclusion. in post releasing radical innovations. These are small innovative companies (start-up). "the first swallows" A special feature is the intellectual resources with the help of which innovative products were developed. The developer does not have enough financial and logistical support, so he is not able to carry out the promotion and large-scale distribution of his development.

Commutators– firms that imitate new products or offer new types of services based on new products. The imitation strategy is typical for many small companies. "gray mice" Their activities are mainly connected. with the production of legal copies of famous products. companies, as well as providing after-sales services. service of innovative products.

Small Firm Strategies:“false mushroom” - analogues offered by companies; "chameleon" franchise; “wise minnow” - a small enterprise functions exclusively within the framework of its own. market niches, "stinging bee" - a small company that produces goods for larger ones. Strategist. avg. companies:-saving (market growth died/company growth died), -going beyond the niche (acceleration/died), -searching for an invader (died/acceleration), -leadership in the niche (acceleration/acceleration)

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

Subjects of competition: 1) united. countries; 2) countries; 3) countries; 4) regions. Factors of competition: - access to resources (natural, information, finance, people); - population (payment, qualifications, cost, numbers, sex and age structure); -market structure---strategy. Access to international The market is limited by the following factors, in addition to competitors: 1) Economy. factors (level of economic development of other countries, market volume for the company’s goods, degree of market saturation, etc.); 2) Factors related to national. culture and way of life (consumer tastes, forms of purchases, ability to use technologically complex goods, etc.); 3) Political factors (attitude to business, as well as rights, rules and restrictions under which the company must operate). When a firm enters into a risky business abroad, it must obtain much more information than it needs to commercial solutions within your own country.
1. International penetration generally costs more and takes longer than comparable domestic diversification. 2. Differences between commercial and other success factors, the importance of unclear information, differences in tax systems, income restrictions and foreign exchange barriers, legal requirements that must be met in the country, all these circumstances can force a firm to move beyond the role of an exporter and become a member of a local entrepreneurial community. 3. It is likely that the product range and marketing strategy, cat. were successful. on internal market, may be suboptimal 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 formulating a strategy for the internationalization of a company’s activities.
Through diversification/internationalization the following is usually achieved. goals:
1. Growth in the scale/size of the company:
a) support growth and avoid stagnation caused by the saturation of the company’s traditional agricultural products; b) accelerate the growth that began in the past and is still ongoing;
c) increase the scale/size of the company by distributing activities across agricultural enterprises with similar growth prospects.

Ministry of Education and Science of the Republic of Kazakhstan

University of International Business

Department of Management

COURSE WORK

On the topic of:"Competitive Strategy".

Completed by the student:

Kochetygova Anastasia

gr. No. 330

Checked by the supervisor

Borovskaya I.L.

Almaty, 2011

Introduction

Conclusion

Bibliography

Introduction

1.Relevance of the research problem

The global market places very stringent demands on the competitiveness of companies. International business faces a number of difficulties: differences in culture, problems with exchange rates and currency translations, complexities of taxation and pricing, adapting products to the requirements of foreign consumers, difficulties in choosing the optimal organizational structure for conducting international business, and high political risk. At the same time, the main principles of a company's competitiveness strategy are competitive advantage that comes from improving technology, introducing innovations, and financing R&D. Also, a competitive advantage is often created in market niches in which large competitors did not show interest due to their low 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 society minimal cost. Such control is a kind of force that pushes the manufacturer to reduce production costs and prices, to increase sales volumes, to fight for orders and consumers, and to improve quality.

Companies can provide greater customer value by offering customers lower prices than competitors for similar products and services, or by offering significant 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 particular in our country, 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 in it, a firm or enterprise needs to develop strategic plans and apply competitive strategies.

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

2.Object and subject of research

The object of study of this work is the phenomenon of competition.

The subject 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. identify the main types of competitive strategies and the requirements for their implementation. Give examples of using strategies.

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

Essence, forms and methods of competition

The interaction between supply and demand and the functioning of the price mechanism occur in the market under conditions of competition between buyers and between sellers. Competition (translated from Latin means “converge”, “collide”) is economic rivalry, competition between isolated commodity producers and consumers to obtain maximum income. A. Smith figuratively called this process the “invisible hand” of the market, thanks to which the selfish motivations of individuals to obtain their own economic benefit are turned to the benefit of the whole society and serve the forward movement of the economy.

In the broad 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 market economy subjects in the process of production, purchase and sale of goods, as well as in the sphere of investment of capital.

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 manufacturers for more favorable business conditions and for obtaining maximum profits. 1

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

The participants in the competition are, first of all, firms and commercial organizations that compete with each other for markets, the best conditions for purchase or sale, for resources, both material and intellectual, and compete in the field of R&D ( scientific research and development projects), 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 own any property, the opportunity to receive free education, etc. Competitive fight inherent in various groups, associations and entire countries. Each of which strives 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 dispersion 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 one buyer or seller can demand or supply enough of a product to significantly affect its price. Let's consider this thesis from the sales, or supply, side of the commodity market. You can pay attention to the fact that when a product is unusually scarce, its price increases. For example, unseasonable frost in Kazakhstan can seriously reduce the potato harvest and sharply increase its price. Likewise, if a single producer or a small group of producers acting together are able to somehow regulate and limit the total supply of a product, then the price can be raised to the benefit of the seller.

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

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

Secondly, competition must ensure such development that the desire of enterprises to obtain maximum profits contributes to technical progress, i.e. competition serves the function of ensuring progress.

Third, competition serves a distribution function. It must create conditions where the distribution of income from production factors is carried out depending on their productivity. This distribution is the best basis for stimulating increased production efficiency and thereby ensures maximum height volumes of manufactured products, i.e. supply volumes.

Fourthly, 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 a market system, the activities and choices 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 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 Prices include: the use of monopoly high or monopolistically low prices in order to displace 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 products), etc.

The main methods of competition in modern enterprises are non-price, i.e. competition is carried out by increasing the technical level of products, the quality of goods, improving the range while maintaining approximately the same price. These methods include advertising, after-sales services, credit sales, leasing, incentives for regular customers, and the use of trademarks and company names.

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

At the same time, the use of various methods of competition will not bring success, will not make competition civilized and effective, unless the economic center of society - the state - takes measures to ensure normal conditions for functioning and protection from monopolism, the strengthening of which negatively affects the development of a market economy. The implementation of competition policy and regulation of the activities of monopolies 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 achieve a competitive market position in the industry - that is, in the main arena where rivals fight. 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 direct the activities of an enterprise. The variety of strategies used in strategic management makes their classification very difficult.

Competitive strategy is aimed at achieving a stable and advantageous position that allows the company to withstand the pressure of those forces that determine competition in the industry.

To achieve success in the modern economy, a company must focus on its competitors, i.e. avoid their strengths and look for their weaknesses, so that you can then launch a marketing attack on those weaknesses. A company does not necessarily have to be the best in every area of its activity. You can focus your efforts in several areas, achieve excellent results in them, and even be a leader, and be “in the background” in the rest.

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 company. (whether she is a market leader, challenger, follower or niche inhabitant)

2. Strategic task. (whether the company strives to dominate the market or expects to occupy a convenient profitable niche)

3. Market situation. (Whether the firm is in an early growth stage or in a late maturity phase). 3

Economists identify the following main competitive strategies that firms use. All of these methods of competition can be used simultaneously, but usually a company relies on one technique, using others as additional ones.

1. Cost minimization strategy.

Factors favoring the use 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 consumers switching to other products is high.

Minimum costs can be achieved to a large extent through properly built relationships with suppliers. But it is necessary to understand that in this case, the organization becomes highly dependent on its suppliers and their delivery conditions, as well as on their well-being in the market. However, if the company is a large buyer and its market share is significant, it can, to a certain extent, influence suppliers by obtaining more favorable delivery conditions.

An organization applying a minimum cost strategy needs to carefully and constantly monitor any changes in industry technologies in order to select the most effective and economical ones for subsequent implementation in its 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 ahead of its competitors.

Advantages may 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 are more preferred by customers. As a result, the organization must constantly monitor the market in order to study and timely identify new consumer needs, as well as make appropriate adjustments to the goods produced in order to best meet the needs of customers.

The main weakness of the strategy is its focus on the production of a specific product, i.e. insufficient level of differentiation of products and services. This is because maximum economies of scale are achieved with significant production volumes. In other words, the presence of a highly diversified range 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. Differentiation strategy.

A differentiation strategy involves making 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 company to serve a larger number of consumers by providing the buyer with a wider choice and, as a result, better satisfaction of their needs.

“Consumer value of a product” is the relationship between the price of a product and its subjective value for a particular 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 is worth canceling that for one person functionality is of maximum importance (the presence of a large number additional functions), for another - dimensions and technical characteristics, for a third - color, etc. Therefore, the more modifications of a product there are, the higher the likelihood that it will appeal to a larger number of potential buyers.

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

On the one hand, the more modifications of a product a company makes, the greater the volume of products 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 of types of products, all the advantages of economies of scale cannot always be used.

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

3. Focusing strategy.

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

there are quite large groups of consumers whose needs for a product for a certain 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 it to serve large groups of potential clients with standard needs.

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

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

a significant reduction 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 in the target segment to standard products;

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

4. Innovation strategy.

Statistics from 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, no more than 5 go through all stages from idea to implementation), on the other hand, by a high level of profitability for successfully implemented ideas, sometimes more than 3 times higher than the average return on investment.

5. Rapid response strategy.

The rapid response strategy occupies a somewhat separate place, so it is not always included by the authors in this classification.

Firms implementing a strategy of immediate response to market needs are aimed at meeting emerging needs in various areas of business as quickly as possible. The basic principle of behavior is the selection and implementation of projects that are most profitable in current market conditions. Enterprises that rely on rapid response are ready to immediately reorient production, change its scale, in order to obtain maximum profit in a short period of time, despite the high unit costs determined by the lack of any specialization of their production.

Advantages of the strategy:

obtaining excess profits due to high prices for scarce products;

high consumer interest in purchasing goods;

a small number of substitute products;

creating an image of a company that is ready to sacrifice everything to immediately satisfy emerging customer needs.

The necessary conditions:

“entering” and “exiting” the industry is not difficult;

a small number of competitors;

a small, flexible, non-specialized enterprise with a high degree of differentiation;

high degree of personnel mobility;

a marketing service focused only on highly profitable and non-long-term projects.

Risks of the strategy:

high unit costs;

lack of long-term prospects in a particular business;

lack of guarantees of profit;

high risk of bankruptcy.

This strategy is the most “favorite” of imitator organizations that counterfeit products from world-famous manufacturers.

6. Open confrontation strategy

Large market players usually prefer an open confrontation strategy. The first two market numbers, offering a similar product, boldly get involved in the fight in the same market for the same consumers.

The open confrontation 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 prices for a new product higher than the prices of the leader. This will allow us to somewhat delay the moment of the retaliatory strike and build defensive structures around the acquired clients.

7. Sequential capture strategy

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

The goal of this strategy is to gain a significant share in small sectors instead of a modest share of the entire market. Such dominance will make these sectors unattractive to competitors. By connecting these sectors with each other and using economies of scale, you can 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 offensive against Rank Xerox in the UK, concentrated all its resources in Scotland. Having captured 40% of the Scottish market, Canon has gone on the offensive in other parts of the UK. This is an example of a strategy of sequentially capturing regional markets or individual sectors.

8. Raid strategy

Businesses that are smaller in size than their main competitors usually use a foray strategy. In this case, there is a struggle for a certain category of consumers. Having chosen a group of consumers where the competitors’ positions are weak, you need to attack in this direction (price reduction, Additional services consumers, etc.). If competitors respond by devoting significant resources to this area, then we must be prepared to retreat and think about striking elsewhere.

Enterprises pursuing a foray strategy are constantly searching for market niches that are unattractive to market leaders. Very often, the reason for consumer dissatisfaction is that the products offered by leaders are of too high quality, which is reflected in the price of these products.

The choice between an open confrontation strategy, a strategy of sequential capture of regional markets or individual sectors, and a foray strategy is made using the long- and medium-term goals of the enterprise and the ratio of enterprise size to market size.

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

As a rule, a company 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 business "strategies" are based on numerous assumptions about prices, costs, inflation, exchange rates, etc. Such forecasts are rarely accurate. Understanding the competitive forces operating in the market 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 with a devastating blow.

In many markets, economies of scale have a significant impact on a company's profits. But enterprise size is not always a good thing. Large enterprises are prone to bureaucracy, slowness and myopia. People who are not interested in any improvements come to manage such an enterprise. This threatens the loss of its leading position in the market.

It is very difficult for an unknown brand to beat a known brand in an open battle. The consumer, as a rule, remains loyal to old brands to which he has long been accustomed. Increasing 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 a company protects its customers.

An enterprise must be well aware of its weak points, which may become the target of attack by competitors. It is better to attack yourself by offering a new product to the market than to wait for your competitors to do it. But you need to be careful.

Very often, enterprises launch an attack on competitors without having any advantages. 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 appear on the market with differences that are barely noticeable to the average consumer. Therefore, an enterprise should think about actively using its advantages to emphasize its difference from competitors.

Because businesses follow a policy of imitating competitors, consumers are unable to discern significant differences between products and are forced to make purchasing decisions based solely on price. Therefore, the enterprise must create some kind of differentiating factor that will highlight the products of this enterprise and for which the consumer is willing to pay extra 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 main strategies considered, alternative ways of behavior of firms in world markets are also used. Let's consider a number of specific strategic alternatives that are used by companies in the international context:

1. creation of wholly owned subsidiaries;

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

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

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

5. offshore production. Offshore production is advisable to use in cases where: products require significant costs due to large volumes of unskilled labor; the weight of the product is relatively small compared to 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 easier. 4

Application of competitive strategies using the example of Becker and Co.

Let's consider the use of competitive strategies using the example of the Becker and Co. company.

The Kazakh-German joint venture Becker & Co., in the form of a limited liability partnership, was created in early 1991.

Currently, the Becker & Co. company is one of the leading companies in the Republic of Kazakhstan. The company produces and sells meat, bakery, confectionery, culinary products, frozen semi-finished products, branded beer “Becker Bier”, as well as providing restaurant services.

The quality of products manufactured by JV Becker and Co. LLP has been awarded high awards received at exhibitions and competitions held in our country and abroad.

Among them is the award of the President of the Republic of Kazakhstan in the category “Best enterprise producing goods for the population.”

In addition, the Becker & Co. company is a leader among manufacturers of finished products in Almaty.

History of the organization

The limited liability partnership "Becker and Co" was created in early 1991. The Ministry of Finance of the Republic of Kazakhstan issued a registration certificate for the company No. 6.

In 1991, Becker and Co. LLP was 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. Construction began in 1992, and the first stage of the complex was commissioned in 1994. The area of the first stage was 3800 m2, it housed an office, a brewery, a Prussia restaurant and a sausage shop. At the end of 1994, the brewery was put into operation. The Prussia restaurant began operating in January 1995, and the sausage shop began operating in April 1996.

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 products shop, a deli, a supermarket, a Bistro cafe and a staff canteen. The use of high-quality raw materials, which are purchased from Kazakhstani manufacturers or supplied from Germany; modern technologies; ensuring compliance with sanitary and hygienic requirements in production, 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: “Preserve the traditions of consuming environmentally friendly food products.”

Implementation of international standards

Becker & Co LLP has implemented and certified 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, Becker and Co. LLP sent a letter Secretary General UN to Mr. Ban Ki-moon about the company's intention to join the Global Compact and follow the ten principles of human rights, labor relations, environmental protection and anti-corruption and promote their dissemination in the area of our activities. In April 2007, the company received information about the accession of JV Becker & Co. LLP to the Global Compact and registration on the United Nations Global Compact website (UN Global Compact Office). 5

Competitive strategies used by Becker and Co.:

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

Strategy for an increased level of service (Becker & Co. has developed and implemented a unified service standard since 2004: these are clearly formulated rules for professional communication between store personnel and customers. Starting from the personnel selection stage, the company ensures that high quality service is maintained).

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

4. Rapid response strategy (Focus on the needs of the Kazakh population: introduction of “halal” products, samsa into the sale, industrial production of national products from horse meat “Kazy”, “Zhaya”, “Sur-et”, which are in great demand among the indigenous population, has been mastered ).

5. Consecutive capture strategy (First, gaining a leading position in the meat products market, then mastering the brewing, bread production, and restaurant business).

6. Creation of wholly owned subsidiaries (Bistro, Prussia restaurant, 2 supermarkets).

The food production market in Almaty is quite developed, and the Becker and Co. company undoubtedly occupies one of the leading positions in it.

Conclusion

In conclusion, I would like to note that many businesses 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 special approach.

The market leader must constantly strengthen its position. It is impossible to successfully defend against all competitive attacks. Therefore, losses in some areas must be offset by gains in other areas.

A company usually faces several competitors. The question arises as to who to attack first. It is necessary to concentrate all resources to fight one competitor in a certain market segment. After achieving success in this area, such tactics can be applied at the appropriate time to another market segment.

Spreading the resources of an enterprise in various directions will not lead to anything good. Therefore, you need to clearly understand your goals and strictly adhere to the chosen strategy.

Very often, in the fight against competitors, an enterprise acts very straightforwardly, 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 company 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 inhabitant. Conducts an analysis of its competitors and evaluates its capabilities, and only then chooses a suitable competitive strategy.

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

Bibliography

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 “Competition, tactics and strategy”

http://www.malb.ru/ – article “Methods of competition in market conditions”

http://rusconsult.ru/ – article “Strategy and tactics of competition

Website 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 competition”

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

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Abstract >> Marketing

Various attack strategies. Attack strategy- This strategy competitive struggle, used by a market challenger in fight for sales markets...

Everyone approaches competition, as well as competition, differently. Regardless of this, we must admit that these phenomena are an objective reality that is pointless to deny. Every company has competitors. Therefore, competition is a continuous process in a modern market economy. Moreover, in defending their customers, companies use a variety of means and use their entire reserve. Serious businessmen understand: a company that does not stand up to its competitors is doomed.

Let's define what it is competitive fight. An accurate understanding of the essence of competition will help with this. This word comes from the Latin “concurro”, meaning “I run together, collide.” Simply put, competition is rivalry between many firms engaged in the same business - selling a product or providing a service. Anyone who wants to buy a product or receive a service has the opportunity to choose among these companies. It becomes clear that competition is a whole series of actions designed not only to strengthen the company’s position in the market, but also to ensure the growth of its share and the possible displacement of a competitor. That is, as a result of “passive” struggle, the company retains existing customers. “Active” or even “aggressive” struggle has the goal of retaining its consumer and “fighting off” buyers from competitors.

Any confrontation will be effective subject to careful preliminary preparation. This also applies to competition in the market. You will be successful by taking specific steps:

Conduct market research to identify your target audience.
Identify your main competitors.
Take advantage of your competitive advantages.
Adhere to a consistent course of doing business in the market.
Develop a competitive strategy.

Several tenets of competition:

Play by the rules. This means that all actions in your struggle for success must fit within the framework of the law.
You don't have to be a leader. The main thing is not to end up “in the tail”.
The one with the most competitive advantages wins.

Let's take a closer look at some methods of competition.

Monitoring competitors' prices: 4 ideas to note for businessmen

How to identify your main competitors

Make a list of possible opponents

It is not difficult. Think about which companies, besides yours, can satisfy the target consumer's need. Make as many as possible full list such companies.

Sources that may be useful to you:

Internet. On the World Wide Web, you can type a product or service into the search bar. The search result will be the sites of your possible competitors. Do not ignore review sites and business directories (2GIS, Yandex, Google and others).
Monitoring (inspection) of sales points. Visit nearby outlets or service centers. Sometimes this allows you to get some insight into the competitiveness of your opponents.
Talk to industry reviews And analytical articles. They may contain ready-made lists of serious players in your field, some information about them that may be useful to you when developing a competitive strategy.
Visit thematic exhibitions, conferences And seminars. Most likely, you will meet there those who are interested specifically in your market segment. This will allow you to make the necessary contacts.

Auxiliary methods for collecting information will include: polls. Firstly, this is a survey of market experts and sales managers, who, as a rule, are asked questions in the style of: “Which companies, in your opinion, are the leaders in this market?” Secondly, a survey of consumers directly, possibly by telephone. The target audience is asked the following questions: “What product brands do you use? Which brands do you have to choose between? Which one would you prefer?

Identify key competitors

The result of all the efforts to compile a list of opponents is likely to be quite a voluminous list. Now your goal is to isolate the main competitors from it. To do this, first of all, exclude indirect (indirect) competitors from the list. These are organizations that work with another product within your target audience or sell alternative products and services. After this, direct competitors will remain on the rating list, among which are the main ones. Direct competitors are companies whose product, market, and consumer are the same as your business. The main competitors are companies that not only have large financial resources and a high market share, but are also capable of significantly influencing your sales through their activities.

Create a competitive warfare strategy

This is perhaps the most difficult stage. It includes a general analysis of each company on the rating list. There are many schemes marketing analysis. Of course, this is scrupulous work, because it must be done for each item on the list of main competitors. Indicators:

Company experience and region.
Managers and organizational and legal form.
Number of staff.
Product range, prices, target audience.
The degree of popularity of the product, the company's fame.
Market share.
Advantages and disadvantages.
Facts of promotion in the media and more.

A competitor whose market share is higher than yours will be dangerous for you. Weak competitors play against you: their consumers may become yours in the near future. In relation to them, use tactics to attract (switch) clients. Try to arrange the collected information in the form of a table, then it will be easier to draw conclusions. After the analysis, you assess the competitiveness of this opponent and develop competitive strategies.

The two main models of interaction with opponents are defense and attack.

Protection involves a set of measures aimed at preserving existing consumers and market share.

Attack– active actions consisting in developing programs aimed at capturing competitors’ consumers. We'll talk more about competitive strategies below.

How to determine your advantages in a competitive environment

To use your competitive advantages to the fullest, you need to know them well. Steps leading to identifying benefits:

Step 1. Compile a list of benefits

What benefits does your product bring to its target audience? You will find the answer, firstly, by analyzing in detail all the characteristics of your product, and secondly, by interviewing customers (what attracts them to your product and what else they would like to receive from this product).

In product analysis, it is convenient to use the so-called marketing mix strategy. This is a set of measures that create demand for a specific product at a certain cost in a given place with the help of a certain promotion. In a modern market economy, there are many variations of this strategy. Some large companies are actively experimenting with the components of the marketing mix, adapting it to the specifics of their business. However, the classic four elements of the marketing mix are at the core of any product. In this regard, the generally accepted name is the 4P strategy, where the first P is Product (product or assortment policy), the second P is Price (price or pricing strategy), the third P is Place (place of sales) and the fourth is Promotion (product promotion).

1) Product is a product or service produced by a company. In addition to the product itself, this element combines the brand (trademark), service, and packaging. Product is the basis of marketing, the main component of the marketing mix. If you “got it right” with a product or service, then it will always be in demand by the consumer. How not to miss? This requires knowledge and understanding of market needs. A successfully selected Product is one that satisfies these important needs.

What else needs to be decided at this stage?

Think over the symbolism of the brand. The logo should become recognizable and the style attractive.
Uniqueness of the product.
Quality of product or service. It relies on consumer perception. Thus, one consumer will evaluate a high-quality dress based on the cut, while another will evaluate the composition of the fabric.
External attractiveness of the product. Imagine chocolates poured into a plastic bag. And now they are the same, but neatly placed in a beautifully designed box. Packaging and design mean a lot to the buyer.
Product range.

2) Price– the monetary equivalent of the product or service offered. It is on this that your direct profit from the sale and the profitability of your company ultimately depends. The choice of pricing policy must be justified. To do this, demand, production and sales costs, competitiveness, and expected profit are taken into account. An effective pricing strategy includes:

Market penetration policy.
Pricing Variations for different sales channels (discounts for wholesale customers, bonuses for regular customers).
Retail price(optimal ratio of selling price and desired profit). Of course, you need to take into account all the premiums passed on by the cost of the product to the final consumer.
Availability of seasonal discounts, promotions, and other promotional events.

3) Place of sale involves all sorts of sales channels . Essentially, these are the paths through which your product reaches the consumer. The seller can carry out the sale himself or resort to the help of intermediaries (sales agents, distributors, retailers or wholesalers).

At the Place stage you need to determine:

Distribution methods(distribution of goods to the largest possible range of consumers).
Distribution channels, through which it is planned to sell the product.
Markets of planned sales.
Distribution terms(discounts and bonuses for dealers, requirements for display of goods and penalties).
Conditions and rules for displaying goods(merchandising).
Inventory management policy goods and logistics.

Examples of ways to market a grocery product: large shopping centers, supermarkets, local grocery stores (within walking distance), wholesale or retail markets.

4) Promotion. It is aimed at stimulating sellers, intermediaries and buyers. This element of the marketing mix consists of various activities that allow you to attract attention to the product, play up its advantages, and interest the consumer in purchasing. This is facilitated by competent advertising. Promotion methods also include PR, direct marketing, and Internet marketing. The most popular promotions are lotteries, competitions with prizes, discounts, and gifts. Often such measures help to make a trademark famous, and subsequently serve to maintain the created image.

Step 2. We prioritize all benefits

We arrange all actual benefits in a list in descending order from the most significant to the least significant.

Step 3. Compare our list of benefits with those of competitors

This will allow you to see where you still need to improve.

Step 4. Identify absolute competitive advantages

These benefits come from products with unique characteristics that have no analogues. Uniqueness can come from either one property or from their combination.

Absolute competitive advantages come from:

"The Secret Component"(special composition).
Impeccable "presentation" (original form, stylish design, extraordinary delivery method).
Highly qualified specialists.
Investments in new developments, technologies.

Step 5. Create “false” competitive advantages

There are very few companies in the world that produce analogue-free products. Most firms operate in highly competitive industries where it is difficult to achieve real competitive benefits. In such circumstances, an alternative is used - the method of creating “false” competitive advantages.

Let's look at five ways:

1) First-mover). This does not mean that you are the first to occupy this niche in the market. It’s just that you were the first to announce a certain product characteristic that competitors’ products also have. But rivals were late to notify consumers about it in a timely manner. This approach will give the impression of your innovation in this decision, which will deprive competitors of the opportunity to use the same technique.

2) Creation new product category. A new product is a product that has entered the market and differs from already sold products of a similar segment in one or more ways. consumer properties. Obviously, this is not a fundamentally new product. The role is played by the very fact of offering a product that has no absolute similarities in a given market (lengthening mascara, special razors, hair dye in a spray bottle).

4) Own efficiency index. Draw the public's attention to a special criterion that your product exclusively meets.

5) Play on curiosity. After all, it is interest that motivates a buyer to choose a “unique” product. This is not necessarily a real advantage, but rather something that will work on the “must try” principle (“melts in your mouth, not in your hands”, washable sleeve toilet paper etc.).

Step 6. Create a marketing action plan

So, we have found real competitive advantages or created “false ones”. Now a good plan is needed. Include at least two points in it: measures to consolidate the relevance of the benefit and actions aimed at further long-term development of the benefit.

Unscrupulous partners: how to recognize scammers in business

What are the competitive strategies?

As you already know, a competitive war is not always blood and sacrifice. Competition is often associated with hostile, harsh, and not always legal behavior. The Russian “dashing 90s” left their mark in memory, when competing parties resolved their affairs by force, sometimes literally eliminating their opponents. Below we will touch on the topic of unfair competition, and now we will dwell on the competitive strategies existing within the framework of the modern economy.

Strategy is the main tool for managing company development and management. Competitive strategy is the actions of a company aimed at its promotion in the industry market, the desire to occupy a leading position. Such a struggle is guided by the goals facing the company. A strategy can be formalized as a document reflecting well-thought-out norms of behavior in the market and interaction with competitors. The goals of competition are divided into minimum and maximum. The minimum is to stabilize your personal market share and retain your consumer. The maximum goal extends further - to expand market share by “squeezing out” buyers from other companies.

Two main competitive tactics:

1) Active (offensive) strategies imply steps aimed at direct confrontation in order to seize market share. This tactic is practiced against key competitors. It justifies almost any action to “take away” customers for its products.

Subtypes of offensive strategy:

Frontal attack. From the name it is clear that the offensive is being carried out on all fronts of the enemy - both on products, and on promotion, and on prices. The participant is guided by the principle of “beating the enemy with his own weapons,” that is, they use his own tools against a key competitor, trying to surpass them in intensity. For example: if a competitor focuses on advertising, then you use the same method of attracting a buyer, but more actively. Then your opponent will “fade out” against your background.
Flank attack . The attack is aimed at the competitor's weak side. Companies with limited resources resort to this strategy. They are unable to defeat the enemy in a direct attack, so they approach from the flanks. The segmentation direction of this tactic involves replenishing a market segment with unmet needs. Example: Japan has become the world's leading producer of economy cars. World practice proves the advantage of flank tactics over a frontal attack.
Encirclement (siege). The competitor’s policy is studied for a long time and carefully, analyzed for weaknesses. This is a wait-and-see tactic, guided by the “slow but sure” attitude. Reminiscent of a flank attack, used by small companies.
Bypass. The outflanking strategy involves avoiding direct competition. The company consistently and scrupulously develops know-how and produces products in a segment that does not overlap with the sphere of interests of key competitors.

2) Passive strategies have the goal of peacefully interacting with rivals, while slightly increasing their market share and profits. Passive strategies are popular among small firms. They do not cause opposition from key market players.

Peculiarities:

They focus on individual small sectors of the market and do not have the goal of “conquering” the entire market.
Aimed at developing technologies in the direction of reducing costs and basic expenses.
The priority is profit, not market share or sales volume.

Subtypes of passive strategies:

Copying “promoted” products(“we do the same thing as them, but at half the price”). To use this tactic, the firm must have sufficient resources to create a copy of the product.
Small market niche strategy. Used in small businesses. It consists of selling original products within a very small market segment. Based on the special skills of the business owner - making flowers from leather, figured metal forging and others.
Complicity strategy– this is when an enterprise produces a product or service that helps complete the products of a large competitor (furniture or sewing accessories, automotive chemicals).
Saving positions- “Better is a bird in the hand...” The company maintains the stability of its development and share, while trying not to interfere with larger companies in this industry. Not a very viable tactic.
Franchising. Small business strategy. The company secures the “guardianship” of a major competitor, working under its auspices. Documented in a franchise agreement .

How to open a franchise: step-by-step instructions and common mistakes

Expert opinion

Original strategy - make friends with a competitor

Anatoly Durakov,

development director of the Favorit holding, Kotlas (Arkhangelsk region)

It is unrealistic for small and medium-sized businesses to compete with market leaders. It is also impossible to defeat your opponents by playing by their rules. Therefore, it is not necessary to get involved in an exhausting confrontation with competitors. Why not try to find, so to speak, common ground, a compromise? An example from my practice: our company produces sausages. Faced with two competitors, we focused our efforts on getting the larger one on our side. The tool was a joint marketing campaign. The efforts led to a positive result.

As a result, the second competitor's sales fell sharply because its customers became our customers. It was decided to agree with the remaining competitor (with whom the joint action took place) on the division of areas of activity.

“Friendship” with competitors saves you money and gives you time to prepare your staff to develop non-standard methods of competition. To start, give your employees homework: Let them collect information about original marketing techniques (attacks on competitors’ products, unusual advertising, PR and promotions). So, in 1958, E. Bernat created a lollipop. He was guided by the observation that all children love sweets, but when they eat, they often get their hands dirty and wipe them on their clothes. The original Chupa Chups lollipop has gained popularity all over the world.

However, non-standard moves are often a matter of chance; they are unique. This creates the need to generate your own ideas. For example, two firms involved in the production and installation plastic windows, constantly fought for the consumer: today some give something to state employees, tomorrow others provide discounts to newlyweds, and so on. Tired of this vicious circle, they developed a unified social program. In particular, it provided for discounts and bonuses for the most different categories buyers and many other marketing moves.

For development creative thinking Encourage employees to regularly monitor marketing innovations, attend thematic seminars, and visit specialized websites. Make it a rule to discuss the results monthly. The flow of fresh information and new ideas for developing your business should be continuous.

How to develop competitive strategies yourself

Competitive strategy is a serious tool in your hands that allows you to achieve business success. It allows you to build meaningful interactions with competitors. In addition to preparing a strategy, you need to think through a plan for its implementation, implement it and subsequently analyze the results achieved. A clear, written plan for implementing a competitive strategy helps enterprise employees act in a coordinated manner.

The need to create a competitive strategy is clear. How to develop it?

Step 1. Determine the method of competition.

In global marketing, as mentioned above, there are two main types of competitive strategy: offensive (proactive) and passive. Each of them has many subspecies. Which one to use is up to you. The choice of competitive strategy is influenced by the following factors:

Industry of the company(how high is the level of competition);
State of the economic sphere(is it stable, is it not suffering from the consequences of the crisis);
Goals of the owner of the enterprise;
State of affairs of the company(strengths and weaknesses are taken into account);
Practice of applying previous strategies(consistently use what brought good results, draw conclusions from past mistakes).

Generally speaking, you have three options to choose from:

Ensure competitiveness by achieving low product costs(which will consequently lead to a lower price and increased sales).
Compete in the market by creating unique product characteristics.
Compete by creating a small group of repeat customers with high loyalty.

Step 2. Determine the target market.

The criteria will be your competitive advantages, as well as the long-term attractiveness of this market segment. The latter is assessed by dynamics and sales volumes. It is more profitable to work in a market with a low level of competition. It will help to create a map of strategic groups of competitors. This is especially true in a region with a fairly large number of competitors, which complicates a detailed analysis of each of them. The map includes competitive firms with approximately equal market shares. They are divided into groups. The criteria by which groups are formed may be different (products of the same type, use of common sales channels, technologies, similarity in pricing policies, etc.).

Possible criteria for drawing up strategic competitive market groups could be as follows:

Specialization (narrow profile or for a wide market).
Business level (local, regional, national, international).
Business size (small, medium, large).
Strategy in know-how (innovator, follower).

Based on the map of strategic competitive groups, make your final choice of target market.

Step 3. We identify and consolidate competitive advantages.

This has been discussed a lot earlier. Using existing advantages will make it possible to attract consumers to products and expand market share.

Step 4. Create a competitive strategy plan.

Preparation period equipped you with knowledge about each competitor. You are aware of their strengths and weaknesses. Assess the threats to your business and develop a strategy for each key competitor - offensive or passive.

Step 5. Determine competition policy in the industry.

An industry is all enterprises that have general types raw materials, materials, manufacturing technologies, as well as the general purpose of the manufactured product. The country's economy includes such groups of industries as:

Social service(medicine, education, arts, science, defense).
Non-productive(housing and communal services, transport, internet, communications).
Production(construction, trade, agriculture).

The competitiveness of an industry is characterized by the ability of enterprises included in it to compete with each other for consumers and market share. There is a concept industry competitive advantages. They are determined by the specifics of the industry itself, the demand for manufactured products, the level of development of intra-industry infrastructure, and other factors. We can say that any enterprise operating in the industry has industry advantages. External competitive advantages: high level of competitiveness of the country, government support not only for large but also small businesses, good legal regulation of the economy. An example of internal advantages is the demand for manufactured products.

Step 6. We carry out monitoring, control and subsequent adjustments.

Everything you have already undertaken: analyzing the target market, creating a map of strategic groups of competitors, collecting information about them, drawing up a competitive strategy, which is necessary for successful competition. After all these efforts have been put into practice and have begun to produce results, it is necessary to ensure constant monitoring of the implementation of the adopted strategy. Periodic monitoring of the performance of the chosen tactics will allow you to make the necessary adjustments to the process in a timely manner.

Expert opinion

Find an open niche in your region

Evgenia Sabo,

Director of the company "Caprice", Barnaul

In our city there are about 50 companies engaged in the transportation of passengers (taxi). Our company turned out to be “out of competition”. And this despite the fact that we started without a marketing plan and did without advertising investments. We were provided with PR by the local media: newspaper articles were written about us and they talked about our transport services. And all because the theme of “women’s taxi”, which has already taken root all over the world, and even in some Russian cities, has become something out of the ordinary for the residents of Barnaul.

We immediately left our rivals behind. Our service became exclusive and allowed us to fill an empty niche. The peculiarities of our work lie in limiting the categories served. Our company's clients are women. These are young students, mothers with children, employees of organizations who stay late. They all feel safe in our cars, because all the drivers are women too.

The idea of creating a “women’s taxi” was born from my experience and needs. One day it became necessary to send a child by taxi alone. Out of concern for his safety, I had to go with him. That’s when I thought that if there had been a woman driving, such a difficulty would not have arisen. This was the start of our business. The preparatory period lasted a symbolic nine months: I dug through a mountain of information, analyzed the experience of companies already operating in this niche. And only then she started a business by hiring female drivers.

Since we serve women, we think about them. So, every little passenger has the opportunity to choose a gift: boys are happy with a new car, and girls are happy soft toy or a ring. It works: many passengers become our regular customers. The staff is at the highest level, many employees have good driving experience, they are for safe driving, and are friendly. Perhaps few people in Barnaul today have not heard of our company. However, we can already afford advertising. In the future, we plan to develop and improve for regular and new customers.

What methods of competition are used in the market?

Surely you know that they are used in the market as conscientious methods of competition and unscrupulous. Fair competition is carried out by price and non-price methods.

Pricing Methods. As the name suggests, the main technique of such methods is to reduce the price. First, you attract consumers with a low price and switch the buyers of your competitors to yourself. Then, once you have a larger share of the market, you raise prices to make up for the initial losses. In addition to this technique, this can include a reduction in production costs (cost reduction). This is the guiding principle of ROI in any business. Pricing methods are based on the consistent reduction of production costs by increasing labor productivity, using new technologies, and so on. At the moment, this is not the best choice of method of competitive confrontation. Most often it is used by small firms whose strength is not enough to compete through non-price methods. However, there are situations when the use of price methods is justified. For example, if a large company has a goal to penetrate the market with new products; if there is a crisis in sales or purchasing power. It is worth noting a positive point - the social orientation of these methods. Thus, price discrimination (different prices for different categories of buyers) allows the company to receive an even profit, while consumers of any level are satisfied. We will not ignore the negative aspects. One of them is the “turnover” of the client base. Attracted by an exceptionally low price, customers will easily leave you if a product with an even lower price appears.
Non-price methods. The main tool is improving the quality of the product. There are two ways: improving the characteristics of the product itself (product competition); researching customer needs and bringing product sales in line with them (competition based on sales conditions). This type implies an increase in service. Thus, the price fades into the background, giving way to the uniqueness and quality of the product. The buyer reacts precisely to the characteristics of the product, and not to the low price. Development and improvement are constant conditions of non-price methods. We see that the role of non-price competition is positive; it contributes to the appearance of quality goods on the market. The manufacturer tries to meet the buyer halfway (convenient payment terms, guarantee, favorable conditions for post-warranty service). Caring for customer needs is the guiding principle of non-price competition.
Unfair competition. Sometimes the desire to gain an upper hand over competitors leads to the use of methods that are not approved by ethical standards. They are not always illegal, but they are always dishonest. They are difficult to classify due to their diversity. Let's highlight the most commonly used:

1. Dumping. The company sells goods at a price below cost in order to force competitors out of the market.

2. Misinformation of competitors and consumers. It can be direct (misleading regarding the composition, expiration date, etc.) and indirect. Example: using a design and name that is almost the same as that of a competitor. Thus, the consumer, misled, buys a product of lower quality, and the company whose products have been counterfeited loses its reputation and customers.

3. Compromising an opponent, dissemination of false or outright false information about him and his product.

4. Industrial and economic espionage.

5. Criminal methods of competition. We are talking about criminal offenses (kidnapping, death threats, arson, causing harm to health and property). This category also includes methods associated with causing trouble to a competitor by involving various regulatory authorities (SES, fire department, tax, etc.).

Cooperation with competitors: how and why to be friends with rivals

How to resist unfair competition

So, what should you do if someone starts playing foul against you? Unfair competition must be resisted. However, immediately note the thoughts of responding in kind. If your goal is to play fairly and you have succeeded in this so far, you should not ruin your life and business. Information is a powerful weapon in competition. First, try to find out where an unscrupulous competitor gets information about your business. Sources may be: state information registers; commercial organizations (financial information, business connections), inspections initiated by various control authorities (with the seizure of documentation containing commercial data), your own person inside your company. It is almost impossible to completely protect yourself from information leakage. But it is still worth taking the necessary steps. To protect your databases, provide them with special programs that restrict access with passwords. Treat employees' access to sensitive information with special care. These should be reliable people whom you trust. Regarding public information, it will not be possible to prevent a leak here, but you can constantly check who made inquiries about your company. Business requires you to come into contact with many people. These are suppliers of raw materials and equipment, banks, transport companies, clients. Try to make inquiries about every new person who in one way or another shows interest in your enterprise. There is no need to go to the point of absurdity and fall into persecution mania, but reasonable precautions will not hurt.

The goals of competition are varied. They determine the strategy of the opponents' behavior. A competitor may set the goal of completely ousting you from the market. Here they are guided by the common principle “the end justifies the means.” What are these means?

Deprivation of management of an enterprise. In essence, the company is being decapitated. This is achieved by initiating criminal proceedings against the head or key specialists. Detention is chosen as a preventive measure.
Removal of documentation. This action can take place under normal conditions or with “special effects” - with the building surrounded, doors knocked down, workers laid face down on the floor.
Stopping the activities of the enterprise. This can be resolved by judicial intervention. The court issues an act on claims or at the request of the prosecutor's office and other inspection bodies.
Defamation. False negative information is spread about an undesirable company or its managers. The media often become an instrument of unfair competition.

Everything you do to protect against unfair competition must be within the bounds of the law. Let's look at ways of confrontation. If you are convinced that your company has suffered as a result of the illegal actions of a competitor, you can:

File a claim in court (arbitration proceedings).
Contact the Federal Antimonopoly Service Russian Federation(expert council on the application of antimonopoly legislation in the field of unfair competition).

Expert opinion

An employee helped during the search and hid the documents in her clothes.

General Director of a manufacturing and trading company (on condition of anonymity)

This happened several years ago. An inspection came to our company office. Yes, not simple: there were many men in uniform and with weapons. All employees, including women, were forced to lie on the floor. This stopped the entire work process and made it impossible to participate in the search. When it started, our chief accountant, a large woman, asked permission to leave. She managed to hide the carriers with the most valuable information under her clothes, after which she locked herself in the toilet. Thanks to such actions, the inspection authorities were not able to obtain our commercial information.

Unfortunately, competitors often try to cause harm by involving representatives of government agencies. For example, undesirable consequences of a competitor’s ordered actions may include seizure of the company’s property and accounts, initiation of a criminal case against leading specialists, refusal to grant a construction permit, and the like. Perhaps in Russia this is the most serious method of pressure in business. Is there a possibility successful fight? Without a doubt. As already mentioned, any illegal actions of officials can be challenged in court. A good countermeasure would be to have a competent lawyer and notary. During the inspection, these specialists will play a restraining role, not allowing inspectors to go beyond the law and recording any violations.

Dumping in business: what to do if competitors have a price tag below average

Expert opinion

Report illegal actions of inspectors to law enforcement agencies

Alexander Orlov,

partner of the Moscow Bar Association "Grad", Moscow

In the fight against unscrupulous competitors, the main thing is to be careful and know your rights. Of course, it doesn’t hurt to have your own administrative resource at your disposal, which will protect you in the event of illegal actions by the enemy. Often, violations committed by officials can be turned to your advantage. For example, record actions performed without appropriate written form. This will be a bargaining chip against bribed officials.

When a certain official uses his powers, infringing on your rights and promoting the interests of a competitor, use one of the following courses of action. The most logical thing is to contact law enforcement agencies. Many people ignore this method, considering it useless, but practice shows its effectiveness. The second line is more complicated - defending one’s interests, leading to the removal of an official from office. Try to convey to the widest possible circle of the public information about his income, real estate, including abroad. These questions will be of interest to law enforcement agencies.

Of course, the list of methods for countering unfair competition can be expanded depending on your specific situation. Here are the basic operating principles.

Expert opinion

Competitors threatened with violence

General Director of a research and analytical company (on condition of anonymity)

A year ago, people came to the head office of our company who introduced themselves as employees of a private security company (private security company), acting in the interests of the named company. They behaved aggressively and threatened employees with physical harm. One of them stated his demands in rude terms. The essence was this: transfer the domain we registered on the Internet to the designated company, and compensate it for the damage allegedly caused by us.

In order to protect our reputation, we considered it necessary to publicly declare our position in this conflict. There was no response from the company claiming our interests. Our lawyers are preparing a lawsuit.

Competitive strategies of the organization to capture the market and peaceful coexistence in it

Information about the experts

Anatoly Durakov, development director of the Favorit holding, Kotlas (Arkhangelsk region). He worked on television as a sales manager, after which he headed the marketing department at the Strela meat processing plant for three years. Author of the books: “Provincial Marketing. Life of a marketer without a budget."

Evgenia Sabo, Director of the company "Caprice", Barnaul. Has a higher legal education. She works as a leading consultant in a large company in the Altai Territory, and runs a company specializing in the provision of transport services (taxi) for women.

Alexander Orlov, partner of the Moscow Bar Association “Grad”, Moscow. Professor at the Academy of Security, Defense and Law Enforcement. Engaged in the implementation of corporate strategies to protect business structures. Participated in a number of large consulting and litigation projects for Russian and foreign companies. Moscow Bar Association "Grad" provides legal support to Russian and foreign companies. Specializes in legal protection of enterprises in the field of investment, real estate, corporate governance and competitive relations.

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

Most enterprises, in the business planning process, 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 of the enterprise’s performance indicators in accordance with some laws. Of course, it is nice to talk about increasing the market share of an enterprise from 15% to 20%, but nothing is said about who will account 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. Generally, the consumer believes that “big” means “better.” Therefore, in the absence of information about the product, preference is given to the most common brands.

A large enterprise has more financial resources. Very often, large enterprises experience economies of scale. And most enterprises strive to gain a large market share.

But many enterprises waste their efforts across the entire market. But the concentration of an enterprise's resources on a certain market segment can lead to the enterprise's dominance in this market segment.

Enterprises that have firmly taken a place in the market are very difficult to dislodge from there. Huge amounts of money are spent every year on promoting new products. And in 90% of cases the results are disastrous. Therefore, without providing 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 attacking party.

Many businesses limit themselves to considering some vague goals (such as “first place in the market”) and tactical means (product features, advertising, sales, etc.). At the same time, there is no clear idea of where the enterprise should go and how to get there. The main thing to pay attention to is the resources of the enterprise and their relationship with the size of the market.

Open confrontation strategy

Sequential capture strategy

Raid strategy

Businesses that are smaller in size than their main competitors usually use a foray strategy. In this case, there is a struggle for a certain category of consumers. Having chosen a group of consumers where the competitors' positions are weak, you need to attack in this direction (price reduction, additional services to consumers, etc.). If competitors respond by devoting significant resources to this area, then we must be prepared to retreat and think about striking elsewhere.

As a rule, a company 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.

Remember the word "service"!

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

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

Policy of imitation of competitors

There is nothing wrong with imitating your competitors. But then a huge number of products appear on the market with differences that are barely noticeable to the average consumer. Therefore, an enterprise should think about actively using its advantages to highlight your difference from competitors.

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

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Three ways for a business to achieve a competitive advantage

Low prices, differentiation and concentration are three ways a business can achieve a competitive advantage. When choosing one of these paths, you need to clarify your capabilities and analyze the actions of competitors. A strategy that competitors can easily imitate and improve upon rarely succeeds.

Today's choices of an enterprise are limited by decisions made several years ago, and future choices depend on decisions made today. Many business leaders recognize that today's market is very different from what it used to be. But few of them realize that even greater changes are coming.

We must try to see the future before it comes. What are the demographics? Which consumer group dominates the market now? How long will this consumer group's dominance last? What are the trends in the behavior of this group of consumers? What technological changes are happening in this industry and in other industries? The answers to these and similar questions should be a constant focus.

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

Many businesses make the mistake of comparing their service to their competitors. Uses consumers as a standard best service, which they generally met.

Very often, enterprises try to reduce costs by increasing labor productivity, laying off staff, cutting budgets, etc., without changing the structure of the enterprise itself. Production is moving to countries with cheaper labor. 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 produce components for their competitors.

Enterprise restructuring allows you to eliminate a significant part of traditional costs. This newness of thinking is usually characteristic of new players in the market.

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

An enterprise that maintains minimum costs must constantly monitor technological developments. After all, technological changes can greatly affect the position of an enterprise. A product that is considered standard and inexpensive today may become unnecessary tomorrow.

If several players in a market prioritize cost minimization, 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 changes in the market and consumer behavior. But each market segment requires a special approach.

Strengthening positions

Spreading the resources of an enterprise in various directions will not lead to anything good. Therefore, you need to clearly understand your goals and strictly adhere to the chosen strategy.