Competitive strategy is the desire of the company 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 onslaught of the forces that determine the competitive struggle in the industry.
There are six main competitive strategies that firms use:
1. The strategy of minimizing costs (assumes the maximum possible reduction in the costs of production and sale of goods, which allows you to attract the maximum possible number 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, 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 the rapid adaptation of production to changing demand in the segment of the sales market served by the organization);
6. Synergy strategy (this is a strategy for obtaining competitive advantages by combining two or more business units in one hand).
Cost minimization strategy.
It consists in the fact that an organization with a minimum cost, ceteris paribus, provides more high profitability sales compared to competitors. Such an organization has the opportunity to win 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 probability of switching consumers of goods to other goods is high.
Minimal costs can be achieved to a large extent through properly built relationships with suppliers. But it must be understood 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 favorable delivery terms.
An organization pursuing a strategy of minimum cost needs to carefully and constantly monitor any changes in industry technologies in order to select the most effective and cost-effective ones for subsequent implementation in own production. The firm is obliged to carry out continuous modernization or even complete replacement production equipment in the shortest possible time, so that it is not ahead of competitors.
Advantages can also be lost if competitors master the production of substitute products that are not inferior in quality to the organization's products, but with significantly lower production costs, or are more preferred by buyers.
A vulnerability in the cost minimization strategy is the value of capacity utilization and its uniformity. 95% loading of production equipment is considered optimal. Since equipment wear and tear increases unreasonably with a higher load, the cost of goods and services increases significantly with a lower load, due to the fact that part of the capital invested in this equipment is not used, i.e. idle equipment increases the cost of its storage and maintenance of its performance, without making a profit, besides, the equipment becomes obsolete and eventually becomes completely useless.
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 the maximum economies of scale are achieved with significant production volumes.
Differentiation strategy.
A differentiation strategy involves making products functionally not very different from each other. And the breadth of the range is achieved due to minor changes in color, shape, technical specifications etc. This allows the firm to serve more consumers, by providing the buyer with the opportunity wide choice and as a result, more complete satisfaction of their needs.
There are two types of differentiation:
horizontal;
Vertical.
When horizontal, the price of a product or service and the average level of income of consumers practically do not change. In this case, the differentiation of the goods should not be significant: in color, shape, etc.
Vertical differentiation implies that both prices and the average level of income of consumers are different. This situation allows the organization to gain access to different groups of customers due to significant differences in product functionality, the ratio of "price - quality", the manufacture of goods taking into account individual characteristics client, etc., which increases the volume of sales.
It is worth using a differentiation strategy in cases where demand is not price elastic and the industry market has a complex structure. It is under such conditions that she has the greatest chance of success.
The main weakness of this strategy is the difficulties that arise in the sale of goods, as they are associated with high costs for non-price competition (advertising, creating an image, fighting imitators, etc.).
Focused strategy.
It is aimed at meeting the needs of consumers in a narrow segment of the market, which is characterized by the presence of special needs that are different from the average, i.e. capturing a certain niche in the market and making a profit by fully satisfying the needs of this niche.
A focused strategy is appropriate when:
The market is too big to cover completely;
The segment is large enough to generate profits and has growth potential;
The segment is not attractive to many competitors;
A firm starting to work in a segment has enough experience and resources to fully cover it;
The firm can create high barriers in the segment and protect itself from all five forces of Porter's competition.
The implementation of this strategy is associated with the following risks:
1. there is always the possibility of increasing the level of competition in the segment;
2. there is always a danger that the requirements and preferences of consumers in the segment will spread to the entire market;
3. a segment in the process of being developed by its firm can increase its level of attractiveness to competitors.
Innovation strategy.
This strategy implies the acquisition of competitive advantages through the development and implementation of fundamentally new products, technologies or the satisfaction of existing conscious or unconscious customer needs in new ways.
Enterprises that apply an innovation strategy should significantly increase the costs of R&D (research and development activities) to develop radically new materials, goods, technologies in various fields of activity of enterprises and society. As a result of the introduction of R&D products, enterprises can be able to increase profits by dozens of times, by increasing the profitability of sales or creating a new segment, or even a new consumer market.
The statistics of economically developed countries show that innovation activity is characterized, on the one hand, by high level risk, on the other hand - a high level of profitability for successfully implemented ideas, sometimes more than 3 times higher than the average profitability of investments.
Rapid response strategy.
The rapid response strategy involves achieving success through rapid response to changes in external environment(technological, consumer and others). The firm that has chosen this strategy makes every effort to ensure that as much as possible short time adapt products to the market. If she does this faster than her competitors, she will have the opportunity to receive additional profits due to the temporary absence of competitors of a new product (service).
This strategy in its simplest form is implemented by imitation firms that counterfeit branded products worldwide. well-known manufacturers. In the very difficult variant- firms that created the corresponding
Advantages of the strategy:
Obtaining excess profits through high price for scarce products;
High consumer interest in purchasing goods;
A small number of substitute products;
Creating the image of an enterprise that is ready to sacrifice everything to immediately meet the emerging needs of customers.
Strategy risks:
High unit costs;
Lack of long-term prospects in a particular business;
Lack of guarantees in making a profit;
High risk of bankruptcy.
Synergy strategy.
The presence of the synergistic effect and the ability to manage this effect creates a specific competitive advantage, which is realized at the level of the company as a whole and which, ultimately, manifests itself in different product markets in reducing costs or in purchasing products unique properties. The synergy strategy involves increasing the efficiency of activities through the sharing of resources (synergy of technologies and costs), market infrastructure (joint marketing) or areas of activity (synergy of planning and management).
The synergy strategy involves the implementation of related or unrelated diversification of activities, i.e. strengthening positions in the industry through horizontal or vertical integration or penetration into other areas not related to industry production.
Thus, any specific organization must clearly decide for itself what kind of competitive advantage it wants to obtain and in what area it can actually be achieved, given that, in essence, these strategies are alternative.
The second chapter presents two approaches that allow you to identify existing and potential competitors. Analyzed the activities of competitors with the identification of weak and strengths, and also the concept of competitive strategy is considered and strategies of competitive struggle are presented in detail.
1. Differentiation is a competitive strategy in which an organization focuses its efforts on creating products and developing a marketing program that differ in their characteristics in better side from competitors. What enables an organization to become an industry leader in a particular group of products (giving a product special qualities, achieving high values quality score, etc.).
2. Leadership in total costs - 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). As a result, it sets prices lower than its competitors and gains a larger market share.
3. Specialization or focusing A competitive strategy in which an organization concentrates its efforts on the production of products aimed at a narrow circle of consumers.
4. Diversification is a type of strategy aimed at launching new products that are not related to the production of the company's main products, and with access to non-traditional markets. This strategy reduces the likelihood of major failures.
32.Typol. strategies for different life cycle stages
Life cycle org-ii Yudanov. one) Violenti – large companies with mass production, developed infrastructure and a significant research base. Stages of development of violets: Stage 1 - proud lion. High dynamics of development and unstable situation. Over time, the development of the violet slows down, and its position on the market stabilizes, the “proud lion” turns into "mighty elephant" ( a company with a well-developed infrastructure, a network of branches). Investment in various promising areas. Last stage – "Clumsy Hippo" due to excessive diversification of its activities. Difficult to manage. At this stage, violet must take steps to restore its financial stability, including actions to change the structure of a diversified portfolio. Patients- companies specializing in the production of unique new products. The patient occupies a narrow market niche and serves non-standard consumers. These are large, small or medium-sized firms. According to Friesewinkel, patients are called "sly foxes".. The patient firm uses a differentiation strategy - creating a product with specific characteristics. The development of the company occurs to the boundaries of the segment. Further, two possibilities open up for the patient: either to diversify, i.e. to master the new kind activities and turn into a violet, or gradually decrease. scope of activities and then exit the market. Due to the narrow specialization of their activities, the patient is highly dependent on the market. conjuncture, which is weak side"sly fox". Dr. The problem is absorption by the violet.
Explerents- companies, the purpose of the noun-I cat-th conclusion. in post. release of radical innovations. These are small innovative firms (start-up). "first swallows". Feature - intellectual resources, with the help of which the development of innovative products. The explerent lacks 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 novelties 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 known products. companies, as well as providing after-sales services. product innovation service.
Small Firm Strategies:"false mushroom" - analogues offered by companies; "chameleon"-franchise; "wise scribbler" - a small business operates exclusively within the framework of its own. market niches, "stinging bee" - a small firm that produces goods for larger ones. Strategist. avg. firms:-preservation (market growth died / company growth died), -going beyond the niche (accelerated / died), -search for an invader (dead / accelerated), - leadership in the niche (accelerated / accelerated)
33. Features of the company's entry into the international. markets and the internationalization of its competitive strategy
Subjects of competition: 1) obed. countries; 2) countries; 3) countries; 4) regions. Competitiveness factors: - access to resources (nature, information, finance, human); - population (payment, qualifications, cost, number, sex and age structure); - market structure --- strategy. Access to international the market is limited by the following, in addition to competitors, factors: 1) Economy. factors (level of economic development of other countries, market size for the company's products, degree of market saturation, etc.); 2) Factors related to national. culture and way of life (tastes of consumers, forms of purchases, the ability to use technologically complex goods, etc.); 3) Political. factors (attitude towards business, as well as the rights, rules and restrictions under which the firm must operate). When a firm starts a risky business abroad, it must receive much more information than it needs to make commercial decisions at home.
1. As a rule, penetration abroad is more expensive and takes longer than comparable diversification within the country. 2. Differences between commercial and other success factors, the importance of unclear information, differences in the tax system, income and currency barriers, legal requirements that must be met in the country, all these circumstances can force the firm to go beyond the role of an exporter and become a member of a local entrepreneurial community. 3. It is likely that the range of products and marketing strategies that cat. were successful. on the inside market, may not be optimal or even unsuccessful in foreign markets. 4. High costs to receive strategic information about foreign SZH (strategic zone of the household) should be taken into account when assessing profitability and formulating a strategy for the internationalization of a firm's activities.
Due to diversification/internationalization, the following is usually achieved. goals:
1. Growth of the scale/size of the firm:
a) support growth and avoid stagnation caused by the saturation of the firm's traditional SBAs; b) accelerate the growth that began in the past and is still ongoing;
c) increase the scale/size of the firm by spreading activities in SZH with similar growth prospects.
Sooner or later, but the hour will come when your business will be noticed or "marked" by competitors. Even the most successful and thoughtful business plan can be subject to attack by "colleagues", so the process of business planning for our own development must begin with a proactive analysis of possible actions of competitors aimed at undermining our activities.
Most enterprises in the process of business planning concentrate only on their actions (plans and goals, service, quality, sales, advertising, etc.), losing sight of the actions of competitors. All forecasts are based on continuous improvement from year to year of the performance of the enterprise in accordance with some laws. Of course, it's nice to talk about increasing market share enterprises from 15% to 20%, but nothing is said about who will account for this 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 outperform your competitors.
Other things being equal, the larger firm wins. Generally, the consumer thinks that "big" means "better". Therefore, in the absence of information about the product, the most common brands are preferred.
Large enterprise has more financial resources. Very often in a large enterprise there is an economy of scale. And the majority of the enterprises aspires to a conquest of a large share of the market.
But many enterprises ineptly disperse their efforts throughout the market. But the concentration of enterprise resources in a certain market segment can lead to the dominance of the enterprise in this market segment.
Enterprises that have firmly taken their place in the market are very difficult to oust from there. Huge sums are spent every year to promote new products. And in 90% of cases, the results are deplorable. 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 side.
Many businesses are limited to looking at 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 move 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 collision strategy
Large market players usually prefer an open collision strategy. The first two numbers of the market, offering a similar product, boldly get involved in the struggle in the same market for the same consumers.
The open collision strategy is very suitable for the second player in the market. 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 above the prices of the leader. This will allow you to slightly push back the moment of retaliation and build defensive structures around the acquired customers.
Sequential capture strategy
But without clear competitive advantages, an attempt to beat a major competitor “in its field” is doomed to failure. A more reasonable strategy is the consistent capture of regional markets or individual sectors.
The goal of this strategy is to obtain a significant share in small sectors instead of a modest share in the entire market. Such dominance will make these sectors unattractive to competitors. By linking these sectors together and using economies of scale, you can think about the position of the leader in the entire market.
Example. In the late 1970s, instead of a general attack on Rank Xerox in the UK, Canon concentrated all its resources in Scotland. Having won 40% of the Scottish market, Canon went on the offensive in other parts of the UK. This is an example of applying a strategy of successive capture of regional markets or individual sectors.
raid strategy
Companies that are smaller 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 positions of competitors are weak, you need to attack in this direction (price reduction, Additional services consumers, etc.). If competitors in response throw significant resources into this area, then you need to be ready to retreat and think about striking elsewhere.
Enterprises pursuing a foray strategy are constantly looking for market niches that are unattractive for market leaders. Very often, the reason for consumer dissatisfaction is that the products offered by the leaders are too high quality which is reflected in the price of these products.
The choice between an open confrontation strategy, a strategy of successive capture of regional markets or individual sectors, and a raid strategy is made using the long-term and medium-term goals of the enterprise and the ratio of the size of the enterprise to the size of the market.
Only large enterprises with sufficiently strong market positions can resort to an open collision strategy. The strategy of consistently capturing regional markets or individual sectors makes it possible not to scatter resources, but to achieve superiority in an important area.
As a rule, an enterprise should opt for a raid strategy. As the company grows and strengthens the position of the company in the market, you can change the strategy.
In practice, many of the "strategies" of enterprises 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 boon. Large enterprises are prone to bureaucracy, slowness and myopia. People who are not interested in any improvements come to the leadership of such an enterprise. This threatens to lose its leading position in the market.
unknown trademark it's very hard to beat a well-known trademark in an open showdown. The consumer, as a rule, remains faithful to the old trademarks, which he has long been accustomed to. Increasing the level of service can retain many consumers.
The root cause of the search for a new product is petty annoyances, each of which is not decisive. Research shows that there is no clear link between customer loyalty and customer 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.
Difficulty for competitors to enter the market
Making it difficult for competitors to enter the market is another way for a business to protect its customers.
The company must be well aware of its weak spots, which can become the object of attack by competitors. It is better to attack yourself by introducing a new product to the market than to wait for competitors to do so. But at the same time, you need to be careful.
Very often, enterprises attack competitors without any advantages. But the success of attacking actions is impossible without superiority in quality, reliability, price, advertising, etc. You need to have some kind of advantage.
Politics of imitating competitors
There is nothing wrong with imitating competitors. But then a huge number of products appear on the market with subtle differences for a simple consumer. Therefore, the enterprise should think about the active use of its advantages in order to emphasize its difference from competitors.
Due to the fact that enterprises adhere to a policy of imitating competitors, the consumer cannot distinguish a significant difference between products and is forced to make a purchase decision only on the basis of price. Therefore, the enterprise must create some kind of differentiating factor that will distinguish the products of this enterprise and for which the consumer is willing to pay extra money. This will allow the company not to get involved in the 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.
Sooner or later, but the hour will come when your business will be noticed or "marked" by competitors. Even the most successful and thoughtful business plan can be subject to attack by "colleagues", so the process of business planning for our own development must begin with a proactive analysis of possible actions of competitors aimed at undermining our activities.
Most enterprises in the process of business planning concentrate only on their actions (plans and goals, service, quality, sales, advertising, etc.), losing sight of the actions of competitors. All forecasts are based on continuous improvement from year to year of the performance of the enterprise in accordance with some laws. Of course, it's nice to talk about increasing the company's market share 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 outperform your competitors.
Other things being equal, the larger firm wins. Generally, the consumer thinks that "big" means "better". Therefore, in the absence of information about the product, the most common brands are preferred.
A large enterprise has more financial resources. Very often in a large enterprise there is an economy of scale. And the majority of the enterprises aspires to a conquest of a large share of the market.
But many enterprises ineptly disperse their efforts throughout the market. But the concentration of enterprise resources in a certain market segment can lead to the dominance of the enterprise in this market segment.
Enterprises that have firmly taken their place in the market are very difficult to oust from there. Huge sums are spent every year to promote new products. And in 90% of cases, the results are deplorable. 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 side.
Many businesses are limited to looking at 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 move 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 collision strategy
Large market players usually prefer an open collision strategy. The first two numbers of the market, offering a similar product, boldly get involved in the struggle in the same market for the same consumers.
The open collision strategy is very suitable for the second player in the market. 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 above the prices of the leader. This will allow you to slightly push back the moment of retaliation and build defensive structures around the acquired customers.
Sequential capture strategy
But without clear competitive advantages, an attempt to beat a major competitor “in its field” is doomed to failure. A more reasonable strategy is the consistent capture of regional markets or individual sectors.
The goal of this strategy is to obtain a significant share in small sectors instead of a modest share in the entire market. Such dominance will make these sectors unattractive to competitors. By linking these sectors together and using economies of scale, you can think about the position of the leader in the entire market.
Example. In the late 1970s, instead of a general attack on Rank Xerox in the UK, Canon concentrated all its resources in Scotland. Having won 40% of the Scottish market, Canon went on the offensive in other parts of the UK. This is an example of applying a strategy of successive capture of regional markets or individual sectors.
raid strategy
Companies that are smaller 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 position of competitors is weak, you need to attack in this direction (price reduction, additional services to consumers, etc.). If competitors in response throw significant resources into this area, then you need to be ready to retreat and think about striking elsewhere.
Enterprises pursuing a foray strategy are constantly looking for market niches that are unattractive for market leaders. Very often, the reason for consumer dissatisfaction is that the products offered by the leaders are of too high quality, which is reflected in the price of these products.
The choice between an open confrontation strategy, a strategy of successive capture of regional markets or individual sectors, and a raid strategy is made using the long-term and medium-term goals of the enterprise and the ratio of the size of the enterprise to the size of the market.
Only large enterprises with sufficiently strong market positions can resort to an open collision strategy. The strategy of consistently capturing regional markets or individual sectors makes it possible not to scatter resources, but to achieve superiority in an important area.
As a rule, an enterprise should opt for a raid strategy. As the company grows and strengthens the position of the company in the market, you can change the strategy.
In practice, many of the "strategies" of enterprises 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 boon. Large enterprises are prone to bureaucracy, slowness and myopia. People who are not interested in any improvements come to the leadership of such an enterprise. This threatens to lose its leading position in the market.
It is very difficult for an unknown brand to beat a well-known brand in an open showdown. The consumer, as a rule, remains faithful to the old trademarks, which he has long been accustomed to. Increasing the level of service can retain many consumers.
Remember the word "service"!
The root cause of the search for a new product is petty annoyances, each of which is not decisive. Research shows that there is no clear link between customer loyalty and customer 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.
Politics of imitating competitors
There is nothing wrong with imitating competitors. But then a huge number of products appear on the market with subtle differences for a simple consumer. Therefore, the enterprise should think about the active use its advantages to emphasize your difference from your competitors.
Due to the fact that enterprises adhere to a policy of imitating competitors, the consumer cannot distinguish a significant difference between products and is forced to make a purchase decision only on the basis of price. Therefore, the enterprise must create some kind of differentiating factor that will distinguish the products of this enterprise and for which the consumer is willing to pay extra money. This will allow the company not to get involved in the race with prices.
If an enterprise 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.
* * * * * * *
Three Ways for an Enterprise to Achieve Competitive Advantage
Low prices, differentiation, and concentration are the three ways a business can achieve competitive advantage. Choosing one of these paths, you need to clarify your capabilities and analyze the actions of competitors. A strategy that competitors can easily repeat and improve rarely succeeds.
Today's choice of an enterprise is limited by decisions made several years ago, and future choice depends on the decisions made today. Many business leaders acknowledge that modern market very different from what it was before. But only a few of them realize that even more significant changes are coming.
We must try to see the future before it comes. What is demographic situation? Which consumer group dominates the market today? How long will the dominance of this consumer group last? What are the trends in the behavior of this group of consumers? What technological changes are taking place in this industry and in other industries? The answers to these and similar questions should be the focus of attention all the time.
It is especially difficult to force yourself to think about the future for those enterprises that currently do not experience any problems.
Many businesses make the mistake of comparing their service to that of their competitors. Consumers use the best service they have ever encountered as a benchmark.
Very often, enterprises try to reduce costs by increasing labor productivity, laying off staff, cutting the budget, etc., without changing the structure of the enterprise itself. Production is shifted to countries with cheaper labor force. But all these improvements are effective as long as they do not affect the quality and service.
The most common way to reduce unit costs is economies of scale. In this case, with significant savings, many enterprises even agree to engage in the production of components for their competitors.
The restructuring of the enterprise eliminates a significant part of the traditional costs. This novelty of thinking is usually characteristic of new players in the market.
The cost minimization strategy does not mean that the company offers a standard and inexpensive product.
An enterprise adhering to minimum costs must constantly monitor the development of technology. After all, technological changes can greatly affect the position of the enterprise. A product that is considered standard and inexpensive today may become unnecessary tomorrow.
If several players in the market 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 market changes and consumer behavior. But each market segment requires a different approach.
Strengthening positions
The market leader must constantly strengthen its position. It is impossible to successfully defend against all competitor attacks. Therefore, losses in some areas must be compensated by gains in other areas.
The company usually faces several competitors. The question is who to attack first. It is necessary to concentrate all resources to deal with any one competitor in a certain market segment. After achieving success in this direction, such tactics can be applied in right time and other market segments.
Scattering the resources of the enterprise in various directions will not lead to anything good. Therefore, you need to clearly understand the goals and clearly adhere to the chosen strategy.
Very often, an enterprise in the fight against competitors acts very straightforwardly, using only price mechanisms. But in order to emerge victorious in the competition, you need to know and put into practice the entire arsenal of the means considered.
