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Development business activity the enterprise is determined by the following circumstances, namely: in which market it operates, i.e. whether it is a mastered market or not, and with what product / types of services does the enterprise enter the market (goods that are new to this market or not).

As a rule, the directions of the strategy of strengthening positions in the market are presented in the form of a matrix built depending on the product and the market (Table 5.2).

Table 5.2. Matrix of basic growth strategies "product-to-market"

The A1 field is characterized by a deep penetration strategy ("old" product - "old" market). This strategy is effective when the market is not yet saturated. A firm can achieve a competitive advantage by reducing production costs and prices for services.

The A2 field is characterized by a market expansion strategy ("old" product - "new" market). When using this strategy, the company is trying to increase the volume of sales of its goods (services) in new markets or in new segments of the existing market.

The B1 field is characterized by a product development strategy (“new” product - “old” market). This strategy is effective in creating new product modifications for existing markets.

The B2 field is characterized by a diversification strategy (“new” product - “new” market). This strategy is used to eliminate the dependence of the firm on the production of a certain product (service) or on a market.

The basic strategies of an enterprise in the market also predetermine the main types of strategies of strategic business units (SCU), of which three main types can be distinguished:

1. Strategy of the offensive (attacking) - the strategy of conquering and expanding the market share.
2. Defense strategy - a strategy to maintain the existing market share.
3. Retreat strategy - a strategy of reducing market share in order to increase profits as a result of gradual withdrawal from the market or liquidation of the business.

The use of one or another type of agricultural strategy by an enterprise is determined by the position in the market, which is characterized by its market share (in percentage). Depending on the market share, the following provisions of the company and its SHP strategy are distinguished.

1. The leader (market share - 40%) feels confident, is the first to take the initiative in the area of prices for new goods. In defense, the leader resorts to various actions:
- - "position defense" - the leader creates barriers (price, licensing) in the main directions of competitors' attacks;
- - "flank defense" - the leader identifies key zones, advanced fortified points for both active defense and counterattack;
- - "preemptive defense" - the leader organizes the advance of the opponent using special signals that neutralize the attack, for example, disseminates information about the upcoming price reduction;
- - “counteroffensive” - after the offensive, the leader pauses, and then strikes the weak point of the competitor, for example, shows the reliability of his product and unreliable elements of the competitor's products;
- - "mobile defense" - the leader expands its influence due to the diversity of production, revealing the deep needs of customers;
- - “squeezing defense” - the leader leaves weakened market segments while strengthening the most promising ones.
2. A contender for leadership (market share - 30%) feels confident only if he attacks first. Various types of attacks are possible:
- - "frontal attack" is carried out in many directions (new goods and prices, advertising and sales), requires significant resources;
- - "encirclement" - an attempt to attack all or a significant part of the leader's market territory;
- - "bypass" - the transition to the production of fundamentally new goods, the development of new markets or the implementation of a leap in technology;
- - "gorilla attack" - small impetuous attacks not entirely correct methods to demoralize the opponent.
3. Follower, or follower (market share - 20%) - this role consists in following the leader at a considerable distance, saving energy and money.
4. Newbie (entrenched in a market niche) (market share - 10%) - beginners start with this role. This is a search for a market "niche" of a sufficiently satisfactory size and profitability.

Growth strategies can be implemented with the help of:

- expanding the volume of sales of goods in order to more fully use the potential of the market;
- entering the already mastered markets with new products;
- with already produced goods to new, not yet mastered markets;
- diversification;
- acquisitions of new businesses;
- entering new markets with new products.

It should be noted that the least risky is

expansion of sales of already produced goods. Then comes the entry with new products into old markets and entry with old products into new markets. The most risky is entering a new market with a new product.

The growth strategy is focused on taking advantage of the opportunities presented by the market. Working with an old product in an old market does not require new knowledge and skills either in the field of marketing or in the field of technology. Therefore, the strategy of expanding the volume of sales of manufactured goods in already involved markets is subject to minimal risk.

At the same time, this strategy is difficult to implement in already developed markets that are at the stage of maturity. This is because expanding sales in mature markets requires taking customers away from competitors. Conquering loyal competitors to buyers can require significant financial costs.

Slightly more risky is entering new markets with an existing product. Such an exit may require additional financial investments in order to conduct advertising campaigns and adapt products to new requirements. Entering new markets also requires significant marketing research to identify new demands and consumer tastes.

The development of new products requires, in addition to significant financial investments, the acquisition of licenses, production permits and various activities. Additional requirements for financial resources, together with unknown consumer reactions to new products / services, bring new risks.

Diversification (entering new markets with new products) is the most risky activity in the implementation of a growth strategy, since here the risk of developing new products is combined with the risk of entering new markets.

Features of the strategy for strengthening market positions for small firms

The main feature of the development of small firms in market conditions is their flexibility, i.e. ability to quickly rebuild their production activities depending on the market situation. The main behavior strategies of a small firm are presented in the matrix (Table 5.3).

Field 1. Copy strategy ("False mushroom"). The essence is that a small firm, using the results of scientific research works larger firms for original products, produces copies of these products, at prices and quality significantly inferior, as a rule, to the original.

Table 5.3. The main types of small firm strategy

Field 2. Strategy of the optimal size ("Wise gudgeon"). A small firm operates under the motto: "not stick out" outside its market niche. Although this strategy ensures the survival of the small firm, it serves as an obstacle to the expansion of its activities.

Field 3. Strategy of participation in the product of a large company ("Stinging Bee"). The use of this strategy is possible when a separate small element of the production of a larger firm is the final product for this firm. To avoid dependence on a larger firm, a small firm should seek to limit the share of turnover per large client, i.e. A small firm should strive to supply several large firms with goods in such a way that the share of each of them in the total sales of the firm does not exceed 20%. This allows small firms, like "stinging bees", to make larger firms "spin" and, by virtue of the establishment low prices to sell products to force large firms to get rid of unproductive divisions.

Field 4. The strategy of using the advantages of a large firm ("Chameleon"). This is the so-called franchising strategy, according to which an agreement is concluded between a small business and a large company, according to which a large company undertakes to supply a small company with its own goods, advertising services, proven business technologies, provides a short-term loan on favorable terms, and rents out its equipment. In turn, a small firm undertakes to have business contacts exclusively with this large firm, to conduct business "according to the rules" of this large firm and to transfer a share of the sales amount determined by the agreement in favor of the large firm.

Features of the strategy for strengthening market positions for medium-sized firms

Medium enterprises are gripped by the grip of the press of large firms and the stinging pricks of small ones. Their survival is characterized by niche specialization strategies. Medium-sized firms build their activities depending on the growth rate of the market and on the possible rate of their growth (Table 5.4).

Field 1 - strategy to maintain the existing position. In this strategy, there is a danger of losing a niche due to changing needs.

Field 2 - the use of this strategy is dictated by the fact that the company has an acute shortage of funds to maintain its position within the niche. The average firm starts looking for a large company that can take over it, keeping it as a relatively independent, autonomous production unit. Use of financial resources large company allows the middle to keep its place in the niche. Using this strategy, the average firm can constantly change owners while maintaining its niche specialization.

Field 3 - when using this strategy, the firm has problems associated with both growth and resource requirements:

- the company is growing as fast as the market niche;
- the firm must have adequate resources to maintain its accelerated growth.

Field 4 - This strategy is only effective when the market niche is too narrow for the average firm. The firm, in terms of sales volume reaching the boundaries of the market niche, will face competition from larger firms. For this "decisive battle" the firm must accumulate the appropriate resources.

Features of the strategy for strengthening market positions for large firms

Large firms, in contrast to small ones, have more opportunities for:

- organization of mass standardized production;
- expanding the scope of its activities (diversification of production) in areas.

In this regard, the growth strategies of large firms are built depending on the degree of diversification and growth rates (Table 5.5).

Table 5.5. Growth strategy matrix of large firms

	Diversification degree
		excessive
Rates of growth

Field 1 - "Proud Lions" - is the strategy of leading firms in the production of products, the growth of output of which is carried out at a high rate, but of a small assortment (for example, the production of consumer electronics).

Field 2 - “Mighty Elephants” is the strategy of firms that have a stable position in the market and have an average rate of growth in output, but unlike the above firms, the degree of diversification of their production is wider, for example, they can cover the production of all electrical engineering.

Field 3 - "Hulking hippos" - this strategy is typical for firms with a high degree of diversification and low growth rates of their output, ie. for firms that produce everything, including the "nail", on their own. The range of products manufactured by such companies is extremely wide - from fairly simple (for example, razors) to devices that are unique in their complexity (for example, a device for treating nerves).

To determine the direction of the strategy being formed, the model "Market attractiveness - advantages in competition", developed by the specialists of the McKenzie consulting firm (USA), is used.

The characteristics of the model are the attractiveness of the market and the advantages of the enterprise in the competition. Market attractiveness is assessed by a number of indicators reflecting market growth prospects, consumer influence, opportunities for price changes, etc.

Competitive advantage is determined by relative market position. The model has the form of a two-coordinate matrix. The positions of the enterprise are reflected in the matrix by a circle, the area of which corresponds to one or another value of the strategic economic unit (SCU) (Table 5.6).

Table 5.6. Matrix "Market attractiveness - advantages in competition"

There are nine fields in the matrix. The upper right margin is the investment and growth strategy, the lower right margin is the maximization strategy; the upper left field is a strategy to strengthen positions through the creation of competitive advantages, the lower left field is a strategy of leaving this market or a strategy of waiting for competitors to leave first, after which it will be possible to capture a larger market share. For SHPs in the middle, decisions are made depending on the nature of the situation.

The use of models makes it possible to identify a possible range of strategies. Assessment of the attractiveness of strategic business units is carried out according to the following methodology.

In unstable market conditions, it is advisable to measure the development prospects of agricultural enterprises according to several criteria.

1. To assess the possible impact of the life cycle, it is necessary to take into account two phases, namely: the not passed part of the current phase and the subsequent phase.
2.For accounting purposes possible development competition, it is necessary to give two estimates of profitability, independent of each other - short-term and long-term.
3. The level of future volatility must also be considered. Practice has developed several different methods for assessing the attractiveness of agricultural enterprises. One of the most common is the following:
- - at the first stage, a forecast of economic, social, political and technological conditions is carried out for those agricultural enterprises that are of interest to the company. For forecasting, the most popular methods can be used, however, the most widespread method is the development of scenarios of future conditions;
- - at the second stage, the analysis of the impact of the most important trends and random events on the corresponding SCS is carried out, as a result of which the measure of instability in this unit is determined, and the manifestation of instability is taken into account both through favorable trends (O) and unfavorable (T);
- - at the third stage, the previous growth trends (G) and profitability (P) are extrapolated;
- - at the fourth stage, an assessment of possible changes in the existing trends in demand is given on the basis of an analysis of the factors that determine it;
- - at the fifth stage, growth trends in the short and long term are determined using intensity points determined from the following table (Table 5.7);

Table 5.7. Assessment of changes in the projected growth of the strategic business unit

Options	Intensity scale
1. Growth rates of manufactured products (services)	Decrease Increase
2. Increase in the number of consumers	Downgrade
3. Dynamics of the geographical expansion of the market	Expansion Narrow
4. Degree of obsolescence of products (services)	Decrease Increase
5. Degree of product (service) renewal	Decrease Increase
6. Degree of technology renewal	Decrease Increase
7. Level of demand saturation	Enhancement
8. State regulation of costs	Tightening Weakening
9. Government regulation of growth	Tightening
10. Unfavorable factors for the growth of profitability	Increase Decrease

- at the sixth stage, the extrapolation of growth trends is corrected taking into account the results obtained at the fifth stage;
- at the seventh stage, the extrapolation of the profitability data is corrected based on the analysis of competitive pressure, determined according to the scale given in table. 5.8;

Table 5.8. Assessment of changes in the profitability of strategic economic zones

Options	Intensity scale +5 -5
1. Fluctuations in profitability	absent
2. Fluctuations in sales	absent
3. Price fluctuations	very large
4. Cyclic polling	absent very great
5. Level of demand in relation to capacity	very tall
6. Characteristics of the market structure	high distribution
7. Stability of the market structure
8. Updating the composition of products
9. Duration of life cycles	big small
10. Development time for new products	long short
11. Expenditure on R&D	large small
12. Costs required for access to the product market (leaving it)	high low
13. Aggressiveness of leading competitors	low -" very high
14. Competition of foreign firms	weak very strong
15. Competition in resource markets	weak very strong

At the eighth stage, a general assessment of the attractiveness of agricultural enterprises in the future is given, taking into account the prospects, growth (G), profitability (R) and the possible level of instability ( THEN) by the following formula

Attractiveness SHP = aw +R-H + yO + aT,

where a, p,y, O - the coefficients determine the weight of each factor, and the sum of their values should be equal to 1.0.

As a rule, two assessments of the attractiveness of agricultural enterprises are calculated - short-term and long-term.

The scale of the intensity of changes ranges from -5 to +5. If the previous values of the characteristic remain in the future, then the mark will stop in the middle of the scale, i.e. its value will be zero.

Portfolio analysis methods

To develop a strategy for strengthening market positions, various methods of portfolio analysis are used. Let us recall that the "portfolio" of an enterprise, or corporate portfolio, is a set of relatively independent business units (strategic business units) belonging to one owner. Portfolio analysis (PA) is a tool by which the management of the enterprise identifies and evaluates its economic activity in order to invest in the most profitable or promising areas and to reduce / stop investments in ineffective projects. At the same time, the relative attractiveness of the markets and the competitiveness of the enterprise in each of these markets are assessed. It is assumed that the company's portfolio must be balanced, i.e. the correct combination of products needing capital for further development with economic units having a certain surplus of capital must be ensured.

The purpose of portfolio analysis is to harmonize business strategies and allocate financial resources between the business units of the company. Portfolio analysis, in general, is carried out according to the following scheme:

1. All activities of the enterprise (product range) are divided into strategic business units, and levels in the organization are selected for analyzing the business portfolio.
2. The relative competitiveness of individual business units and the development prospects of the respective markets are determined. In this case, the collection and analysis of data is carried out in the following areas:
- - the attractiveness of the industry;
- - competitive position;
- - opportunities and threats to the firm;
- - resources and qualifications of personnel.
3. Portfolio matrices (strategic planning matrices) are built and analyzed, and the desired business portfolio and desired competitive position are determined.
4. A strategy is developed for each business unit, and business units with similar strategies are combined into homogeneous groups.

Among the variety of portfolio analysis methods, the most widely used methods are given in Table. 5.9.

Table 5.9. Basic methods of portfolio analysis

The construction of matrices that make it possible to systematically represent the production capabilities of a corporation, the attractiveness of markets and the competitiveness of products is the initial stage of the PA. Similar matrices are built for competing firms, which allows us to predict the most likely areas of their activities. After that, a “target” portfolio of strategies is developed, which is a set of prescriptions for corporate divisions for each product.

Consider the Boston Consulting Group (BCG) method, or the Market Share - Market Growth model.

The essence of the classical BCG method is to determine, using a matrix, the ratio of demand growth and an indicator characterizing the ratio of the market share owned by the firm to the market share owned by its leading competitor.

This ratio determines the comparative competitive position of the firm in perspective.

For each SZH, an assessment is made of the given two parameters, which fit into the corresponding cells.

BCG matrix offers the following set of decisions on the future activities of the company in the respective SZH:

- to protect and strengthen the "stars";
- if possible, get rid of "dogs" if there is no compelling reason to keep them;
- “cash cows” require tight control of capital investments and transfer of surplus cash proceeds under the control of the top management of the company;
- "wild cats" are subject to special study in order to establish whether they will not be able to turn into "stars" with certain investments.

Rice. 5.5.

The dotted line shows that "wild cats" can become "stars", and "stars" in the future, with the advent of inevitable maturity, will turn into "dogs". The solid line shows the redistribution of funds from cash cows.

The BCG matrix helps to accomplish two functions:

- make a decision on the intended positions in the market;
- to distribute strategic funds between SZH in the future.

The BCG matrix is applicable only if the growth in the volume of activity can be a reliable measure of prospects (the phase of the life cycle will not change, the level of instability is low).

The relative position of a firm in competition can be determined by its market share.

In addition, risk factors, knowledge of past strategies, the reaction to the owners of the firm by investors and consumers, and the time factor should be taken into account.

The concept of life cycle formed the basis for the development of this method, which is one of the PA methods - the matrix of the corporation's "product portfolio" proposed by the consulting firm Boston Consulting Group. This method involves assessing the capabilities of a corporation according to two criteria:

- market growth, measured by the absolute volume of industry sales and its growth rates;
- the size of the market share controlled by the corporation, measured as a percentage, and the total industry sales.

In accordance with this method, the entire field of activity of the enterprise is represented as a set of "strategic business units" (SHU) that make up the economic "portfolio" of the enterprise. SHP are independent from each other spheres of activity of the enterprise, which are characterized by a certain product (or a group of them), a circle of customers and special market objectives. Each agricultural enterprise has its own goals, market opportunities and risks. Each SHP can be described by a number of indicators:

- the volume of the agricultural products market, equal to the sum of the sales volumes of products by all manufacturers;
- the share of the enterprise in the volume of the agricultural products market;
- the stage of the life cycle of the SCS (market deployment, growth, etc.);
- the competitive position of the enterprise (strong, weak, medium).

In each time period, the enterprise has a specific set of agricultural products, which is subject to analysis and assessment in order to optimize it.

The need for a systematic review of the portfolio of agricultural enterprises is due to changes in the external and internal environment of the enterprise. The strategic position of the SHP is determined using a two-coordinate matrix consisting of four fields. The matrix is formed by the characteristics "market share" and "market growth".

The construction of the matrix is based on the following prerequisites:

- the volume of the corporation's income is directly proportional to the size of its market share;
- increasing production volumes requires financial investments, the need for which is directly proportional to the rate of market growth;
- a slowdown in market growth while maintaining strong market positions creates an opportunity to receive excess income;
- a decrease in market share in a stagnant market leads to an increase in income.

In accordance with these provisions, there are four categories of products / services in strategic business units and the corresponding types of strategies.

1. SHP "Zvezda". This agricultural enterprise provides a large income, but requires significant investments. Such agricultural enterprises are characterized by high growth rates and a large market share.

A high share of the firm in a fast-growing industry (market), as well as the leading position that it occupies in the market, bringing significant income, but most of them the firm is forced to spend on maintaining its distinctive advantage - leading position. Hence, this SHP is constantly experiencing a lack of funds. The main strategy of the corporation is to penetrate new markets and (or) form new segments in existing markets, master new channels of the distribution system. With a focus on this SHP, the firm's advertising and product development costs remain high.

2. SHP "Cash cow". This SHP generates high income and is characterized by low costs due to the stability of the market in which the company operates. SHPs are characterized by low market growth rates and a large market share.

A high share of a stabilizing or aging industry (market) in which a firm occupies a leading position leads to stable and high enough profits for it.

A firm does not need to spend significant amounts of money on competition. Stable growth rates do not attract smaller competitors to this type of activity (unlike the Zvezda agricultural enterprise), since they do not allow penetrating into the already established structure. Profits are significantly higher than necessary to maintain the achieved market share. The financial surplus is channeled to support other SHEs in the firm.

The main strategic direction of the corporation is to strengthen and protect its market positions from numerous strong competitors. Target advertising work- to create an impression among consumers about the existing product differentiation depending on the requirements of market segments.

3. SHP "Wild cat" (difficult child). This SHP brings small income, but it can turn into SHP "Zvezda" with additional investments. This product category is characterized by high market growth rates and a small controlled market share.

There is a situation of instability "either - or", i.e. either by increasing efforts, to become SHP "Zvezda", or to leave the market. As a rule, the firm does not have enough funds to increase its efforts. the market share occupied does not provide the required profit. Financial support from the Cash Cow farm is required.

The main strategy is to invest significant funds in advertising, identify market shortcomings of the product and improve its consumer properties in order to create a stable guaranteed sales market and consolidate its positions on it.

4. SHP "Dog". This agricultural enterprise brings little income and requires low costs, has no prospects and should be liquidated. Such products are characterized by a low share in a weakly growing or stabilizing industry. There are no profits, and the need for funds to maintain their position is high.

The variant of the strategy is the same as the “dogs in the manger” - either leaving the market, or searching for a highly specialized segment to gain a leading position in it: the Sobaka agricultural enterprise is a burden for the company.

Based on the analysis of the life cycle curve of demand and market position, a matrix of the company's SHS is compiled (Figure 5.6).

Such a matrix represents a set of specific decisions about the nature of the activity in each agricultural enterprise:

- SHP "Zvezda" should be protected and strengthened;
- from SHP "Dog" - if possible get rid of;
- strict control over capital investments is required over the Cash Cow agricultural enterprise;
- SHP "Wild Cat" is subject to special analysis and study to determine the conditions, primarily the means under which it can turn into a "Star".

* -Typical way of development of SHP
--- The main directions of effective financial flows

Rice. 5.6. Firm's SHP matrix

These decision sets are called normative strategies because they define basic patterns of action. This model in addition to the visual presentation of the strategic objectives of the enterprise, it has the advantage that it allows making decisions about market positions and distributing funds between agricultural enterprises. However, this model has disadvantages:

- it uses only two characteristics;
- has low sensitivity, since the characteristic values are only "high - low".

To use the SCS matrix, it is necessary to determine the position in the market, which is estimated by the market share ratio (KDR) according to the following formula

With a value of CRR> 1, the market share is assessed as high, with CRA

The production of a product makes sense for a corporation if it can be transferred from the Wild Cat farm to the Zvezda farm and then to the Cash Cow farm.

The final step is to check the financial balance of the portfolio: it is necessary that the funds required for the development of the feral cats and the maintenance of the stars are supported by the proceeds from the cash cows and from the elimination of the dogs.

Portfolio analysis (PA) is associated with overcoming a number of difficulties, among which it should be noted: correct definition the boundaries and scale of the market; different nature of markets for the same product; inconsistency in assessing the prospects (or lack thereof) according to the criteria of different matrices. In addition, all PA methods assume that it is preferable to invest in markets with high growth rates, which is true for long-term activities, but when analyzing efficiency at current costs, it should be borne in mind that the sum of these costs is lower in the markets.

The main disadvantage of these models is their static nature. They reflect the situation only for a certain period of time. Nevertheless, the models make it possible to answer the following basic questions that underlie the definition of strategies: what is the current state of the enterprise's "portfolio", whether it needs to be changed, what changes should be made in it, how to link them with changes in the external environment, etc.

In this case, the following indicators are used:

- the share of agricultural enterprises in attractive industries;
- the total profit of all agricultural enterprises and their share in it;
- the ratio of "cash cows", "stars", "dogs" and "wild cats" in the program of the enterprise (present and future);
- the number of agricultural enterprises vulnerable from the point of view of competition, etc.

A more sophisticated method of analyzing options strategic development, allowing to obtain more reliable results, is a model for assessing the impact of marketing strategy on profit (PIMS), developed by General Electric and revised by staff at Harvard Business School and the Institute for Marketing Research. The essence of the methodology is reduced to the calculation of multiple regression of indicators of return on invested capital ( ROI) and on the movement of cash on various factors. ROI is calculated as the ratio of the amount of income to the book value of assets.

The factors explaining changes in ROI and cash flow include all the many indicators characterizing market development, the production capabilities of a corporation and a competitor, the development of macroeconomic processes, etc.

The results of calculations by PIMS are a set of matrices used in PA, which makes it possible to assess possible development options from different points of view.

PIMS makes it possible to calculate the average statistical level of development of the industry and the market, to analyze the sensitivity of the strategy by varying the value of one or several factors, to solve the problem of choosing the best combination of controlled factors in terms of profitability.

Bringing the strategy to specific projects and programs is carried out on the basis of project selection methods.

The project selection process consists of several stages. The initial stage - assessment of the current situation and possible directions of development - is carried out using the method of "brainstorming", morphological analysis.

The next stage - the economic assessment of the potential innovation is carried out on the basis of multivariate scoring models. The factors are grouped into groups under the names "Commercial attractiveness" and "Resource capabilities of the company".

The main positions by which the commercial attractiveness is assessed are the dynamics of potential profits, the rate of sales growth, the competitiveness of the product in various markets, the reality of product modification in the event that competitors master its basic version, the likelihood that the commercial development of this invention will change the face of the industry, political, social and other consequences of the project. The maximum score for each position is 10 points.

The category of factors that determine the resource potential of the enterprise include: the availability of financial resources, the sufficiency of its own sales network, the available production capacity, the strength of the scientific and technical base, the compliance of the raw material base with the planned innovations, the presence of gifted innovative managers.

The maximum score for the factors "Commercial attractiveness" and "Resource capabilities of the company" - 120 points. Practice has established that projects that do not "get" 70 points are unlikely to have a chance of success.

The variety of strategic planning methods used at different stages requires ensuring the compatibility of the results obtained with their help and the development of a single procedure for conducting strategic planning.

Lyasko V.I. Strategic planning of enterprise development: textbook, manuals for universities. M.: Exam, 2005.

Strategic management: study guide Lapygin Yury Nikolaevich

4.1. Reference strategies

Typology of Porter strategies

M. Porter in the early 1980s. put forward ideas about competitive strategies, derived from some basic postulates. In the book "Strategy of Competition" he presented three types common strategies aimed at increasing competitiveness: leadership in reducing costs (maintaining costs at a lower level than that of competitors); differentiation (as the production of unique products); focusing (like focusing on a specific group of buyers).

Porter proposed to typologize competitive strategies, based, on the one hand, on the scale of the market (wide, narrow), and, on the other, on the direction of the organization's efforts: either to minimize costs, or on the release of unique products (giving the product specific features), which allows set higher prices. The combination of the listed preferences makes it possible to distinguish four types of strategies (Fig. 4.1.1):

Cost leadership (keeping costs lower than those of competitors);

Differentiation;

Focusing on costs;

Focus on differentiation.

According to Porter, the organization must decide whether it should make unique products and sell them at an inflated price, or should lower costs below competitors' costs and thus achieve a competitive advantage.

Porter's concept of generic (reference) strategies has several disadvantages. Thus, the concept of differentiation and cost leadership have much in common: when differentiating, one must remember about the cost price, and when reducing costs, one must not forget about quality standards. And cost leadership does not always bring more benefits than second or, say, third in the industry. In addition, difficulties arise due to the inconsistency of the requirements for the organization of activities, which is implied by each of the strategies. And it is not clear why it is necessary to choose only one of the strategies, while a combination of several of them can give the best solution.

Rice. 4.1.1. Generic (generic) strategy schema

Typology of strategies according to Thompson and Strickland

A decade later, A. Thompson and A. Strickland proposed a slightly different model for the classification of such strategies - five options for approaching the strategy of competition:

Cost leadership strategy (cost reduction, which attracts a large number of buyers);

Wide differentiation strategy (imparting specific features to products, which attracts a large number of buyers);

Optimal cost strategy (great value for buyers due to a combination of low costs with wide differentiation);

Focused strategy or niche market strategy based on low costs (low costs and a narrow segment of buyers);

Focused strategy, or market niche strategy based on product differentiation (full satisfaction of the requirements of customers from the selected segment).

Business development strategies for Kotler

In addition to general strategies aimed at increasing competitiveness, there are classifications of strategies that determine the change in their scale. For example, business development strategies for Kotler:

Concentrated growth strategy: strengthening market position; market development; product development;

Integrated Growth Strategy: Reverse vertical integration; forward-going vertical integration;

Diversified Growth Strategy: centralized diversification; horizontal diversification; conglomerate diversification;

Reduction strategy: elimination; harvesting; cost reduction.

Stability strategy - focusing on existing business areas and supporting them;

Growth strategy - growing an organization, often through penetrating and capturing new markets (a type of growth strategy is vertical and horizontal integration, which, in particular, manifests itself through takeovers, mergers, acquisitions and the creation of joint organizations);

The reduction strategy is used in cases where the survival of the organization is threatened (a variety of the noted strategy are: a reversal strategy - rejection of inefficient use of resources and search new strategy; branch strategy - sale structural unit or its separation into an independent organization; liquidation strategy - sale of assets). Graphical models of the last two aggregate operators for classifying strategies are shown in Fig. 4.1.2 and 4.1.3, and the content is presented in Appendix 3.

Rice. 4.1.2. Development strategies structure model

Rice. 4.1.3. Structure of general strategies

Typology of strategies by factors influencing its development is based on the determination that five groups of factors influence the formation of a strategy to varying degrees:

Expression of the will of the leadership;

Implementation of the team;

Rational management;

Building competitive advantages;

Relationship with the environment.

Rice. 4.1.4. Five main factors influencing strategy formation

Trenev's typology of strategies

The typology of strategies developed by N.N. Trenev is based on specific growth organization and is as follows (Fig. 4.1.5):

low growth strategy:

Maintaining the status quo;

Defense;

Focus on a limited or special feature.

Exit strategy;

Strong growth strategy:

Absorption of competitors;

Merging with competitors;

Vertical integration;

Geographic expansion;

Diversification.

Rice. 4.1.5. Basic strategies

Defense strategies and maintaining the status quo can also be called stability strategies. Their disadvantage is that in a dynamically changing external environment, the organization refuses to use new opportunities and does not take into account the emergence of new threats.

Thus, it can be argued that the stability strategy is effective only in the case of a relatively stable external environment.

The strategy of focusing on a limited or special opportunity is used in the presence of strong competitors and is based on the strengthening and use of any specific property of the organization or environmental factor.

The exit strategy, also called a reduction strategy, is used when the organization's survival is at stake.

A strong growth strategy assumes a promising market and is aimed at increasing the organization's share in the market and / or capturing it.

Competent / Resource Based Typology

The most successful definition of core competence was given by K. Prahalad and G. Hamel: core competencies are the collective knowledge of an organization, aimed at coordinating different types of production skills and linking together multiple technological streams.

Core competence should:

provide the company with the opportunity to penetrate the market and successfully compete in several markets;

to increase the value of the product in the eyes of the buyer in comparison with its competitive counterpart;

have properties that are not reproducible by competitors. The core competencies and distinctiveness of the company help to understand how an organization can create the qualities that provide it with excellent performance and determine exactly where the company can apply its competencies and abilities.

Consider the factors that should be taken into account in the process of creating new core competencies or developing existing ones.

Buyers' attitude. Buyers should know that the competence, capabilities and products of the company are better than similar attributes of its competitors, and therefore are more expensive. A big role in this case is given to the reputation of the company.

Uniqueness. Core competencies must be unique to the company and have properties that cannot be replicated by competitors. These competencies should not have fakes.

Continuous improvement. Core competencies, products and services must be constantly improved and updated to keep the company ahead of the competition. Updating processes and products is of particular importance.

Cooperation. Competitive advantage can arise from the creation of a unique network of relationships with suppliers, distributors, customers, and even competitors. If the core competencies of different organizations are complementary, that is, they complement each other, a multiplier effect can occur.

Knowledge of the organization. Competencies are based on the knowledge and skills of the organization. Managers need to improve the ways and means of acquiring knowledge. Recently, knowledge has become a potentially powerful source of new value creation.

Strategies for stability, growth and reduction

Stability strategy - focusing on existing lines of business and supporting them.

Growth strategy - increasing the organization, often through penetrating and capturing new markets (a type of growth strategy is vertical and horizontal integration, which, in particular, manifests itself through acquisitions, mergers, acquisitions and the creation of joint organizations).

The reduction strategy is used in cases where the organization's survival is under threat (a variety of the noted strategy are: a reversal strategy - rejection of inefficient use of resources and the search for a new strategy; separation strategy - sale of a structural unit or its allocation into an independent organization; liquidation strategy - sale of assets ).

Typology of strategies based on the model: "product - market" I. Ansoff

One of the most common models for analyzing other possible strategic directions is the Ansoff matrix, shown in Fig. 4.1.6. This matrix shows potential uses for core competencies and generic strategies. There are four broad alternatives:

penetration to the market - increasing the market share in old markets with the help of existing products;

market development - introduction to new markets and new market segments using existing products;

product development - development of new products to serve old markets;

diversification - developing new products to serve new markets.

Rice. 4.1.6. Ansoff matrix (components of vector growth)

Market penetration

The main goal of the market penetration strategy is to increase market share in old markets with existing products. This means the development of measures aimed at strengthening existing core competencies, or creating new ones. Such measures are intended to improve the quality of service or product quality and at the same time increase the company's reputation, distinguishing it from competitors. When developing a competency, you can focus on increasing productivity to keep costs down below competitors' costs.

Breaking into mature or declining markets is more difficult than penetrating markets that are growing. In case the market is dying, the company may consider the possibility exit from the market and transferring resources to more profitable markets.

If a company's markets show signs of saturation, the company can explore new directions for its development.

Market development

Market development involves entering new markets or capturing new segments of old markets using existing products. The basis for entering new markets is the strengthening of existing competencies, as well as the creation of new competencies. In order to penetrate new segments of existing markets, it is sometimes necessary to develop new competencies that will serve the specific needs of buyers in those segments.

Internationalization and globalization is a prime example of how existing markets can be developed. By penetrating international markets, the company must create new competencies in order to successfully cope with language and cultural problems, sales issues, etc.

The main risk associated with entering a new market is that the company may lack practice and experience in new markets.

Product development

Product development means developing new products for existing markets. The goal of this direction, like the previous ones, is to attract new customers, retain old customers and increase market share. The development of a new product may take place on the basis of existing competencies or will require the creation of new ones (such as may be needed for scientific research).

Product development has its advantages as the company already has experience working with customers in the existing market. Today, when the life of a product is very short, its development opportunities are becoming an important part of the strategic direction of many organizations.

Diversification

Diversification is the development of a company through new products and new markets. In an environment where modern markets are quickly saturated and life cycle product is measured in a short period of time, diversification is a good alternative. It can lead to synergies and spread risk by expanding the portfolio of products and markets. Diversification can take two forms, depending on how new products and markets differ from existing ones.

Study of promising markets and the development of international marketing tactics. Consideration of possible strategies for strengthening Gazprom in the European markets. Determining the potential of the North African region and forecasting the possible behavior of competitors.

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Increase your target audience to become a market leader

Why some brands are giants while others are content modest performance? What is the main difference between them? How to become a market leader? Successful development business is impossible without the owner knowing the answer to these questions.

The leading factors influencing brand awareness are two:

First- customer loyalty. It is measured by the average number of purchases per customer. If Masha buys 20 cans of Coca-Cola per month, and Kolya buys only 5 cans, then Masha is a more loyal customer.

Second factor - market coverage. To measure it, the number of buyers who prefer this brand is counted. For example, Coca-Cola annually increases the number of unique consumers of its products by 100 people, while Pepsi - by only 40, therefore, the Coca-Cola market is much larger.

Both of these factors are important in shaping brand size, but one is more important.

The overwhelming majority of marketers are confident that the basis successful business constitutes customer loyalty. Build a loyal customer base and your company can be as successful as Nike.

In other words, Apple and Nike did not reach the top of the business because they had an army of loyal customers. This is not enough to become a market leader. While loyal customers are integral to the success of established companies, reaching a wide audience is what makes a brand a leader.

Sales market influential brands usually much more than small ones. In 2005, a large-scale study was carried out in the United States, which affected all brands of shampoo on store shelves. It turned out that Suave Naturals owns 19% of the market, while its competitor Finesse has only 2%. The loyalty index for these brands was 2 and 1.4, respectively.

In marketing, this is known as the double jeopardy law: small brands have fewer customers with low loyalty. This ultimately explains the small size of the business.

We answered the first part of the question - about the reasons for the difference in the size of the importance of brands - we answered. Now let's figure out what makes brand awareness grow. What exactly helps a company to become a market leader?

The popularity of a brand is mainly influenced by an increase in its market share. To become a leader, a small brand needs to tackle the daunting challenge of enticing customers from a larger competitor. At the same time, it should be understood that it is impossible to force people to make purchases more often than they need, while maintaining 100% loyalty. No brand has such an indicator, but the growth in the number of fans of a particular brand allows increasing sales and strengthening its position in the market.

Therefore, there are two ways to change market coverage:

Growth in the number of buyers.

Reduced customer loss.

Which of these methods will allow you to achieve your goal with the greatest efficiency?

Many marketers are convinced that in order to become a market leader, all efforts must be focused on retaining existing customers, but it is still more effective to attract as many new customers as possible.

Controlling customer churn is an incredibly difficult task, so relying on this method in an attempt to become a market leader is hardly effective. In the 1980s, car sellers in the UK and France reported a 47% churn rate. The market leader, Ford, had 31%, and Honda, then the smallest brand in the industry, had 53%. Today, Ford can be proud of the most loyal customers, but the gap between it and the smallest brand is only 10%.

Therefore, in terms of customer churn, the difference between large and small brands is not very large. It would seem that Honda will be able to increase its share and come closer to the leader if it achieves a halving of the number of customers leaving it. But in practice this cannot be done. The best option to become a market leader is to constantly work to attract new customers.

What are the leadership strategies

A market leader is a company that is dominant in a particular segment for both buyers and its competitors. For the rest of the market participants, this firm serves as a reference point, they choose a strategy of either attack or avoidance in relation to the leading player. The market leader can choose various methods, since his position allows him to dictate his terms to the rest of the participants. The disadvantage of being a market leader is the need to spend energy and money to maintain dominance and fight competitors seeking to win back some of the customers.

Strategies:

1. Market expansion... Growing demand for a product is a strategy that can bring good results, since in this case it is the market leader who will increase sales in the first place.

Strategic tricks for a company seeking to become a market leader include attracting new customers, proposing unusual uses for a product, and increasing usage.

2. Protecting your market share... Along with the growth of sales, protection becomes more important owned by the company market share, as players emerge whose actions can seriously undermine the leadership position. Your task is to minimize the likelihood of active action by competitors.

A leader company can defend itself in various ways: by positional defense (existing markets become the object of protection, but an attack from substitute goods is not excluded); flank defense (includes the creation of goods that can restrict the arrival of substitute goods or those products that will occupy free niches); preemptive strikes (directed against competitors in order to reduce their ability to concentrate on those areas where the leader is most vulnerable); retreats (the company leaves the market, the protection of which does not seem appropriate).

3. Increasing market share... show that in almost all industries, an increase in market share leads to a significant increase in the profitability of its participants.

At the same time, companies striving to become a leader are forced to overcome many restrictions: antitrust legal regulation; the presence of market segments that are notable for their low attractiveness; marketing expenses that exceed revenues from increasing market share. Growth in market size and increase in sales volumes while maintaining a constant share can be considered optimal for most cases.

What needs to be perfected to become a market leader

1. Range.

Probably, the products you offer are represented by a large number of names and are not inferior in terms of the breadth of the range and quality of the main competitors. However, it is not enough to become a market leader. To stand out from the crowd, you need to add a product that stands out favorably with its longer lifespan, more features, or ease of use. The market leader must offer a unique product that other sellers do not have.

2. Promotional materials.

It is impossible to become a market leader without development corporate identity and brand book. In order for promotional materials to be as effective as possible, certain rules should be taken into account when creating them. For example, for the B2B market, gray has become a symbol of solidity and reliability, but it cannot be classified as a seller. By adding red, you can get a good result. It is best to entrust the development of corporate identity to a successful advertising agency.

In the brand book of a company striving to become a market leader, it is necessary to reveal in detail the concept of the brand, describe target audience, to formulate rules for the use of the brand in various communication means. Compliance with them is mandatory not only for employees, but also for business partners. The brand book fixes the requirements for the use of various elements of the corporate identity up to color combinations, fonts, type of letters, and regulates the appearance of corporate souvenirs, documents, stationery.

The correct use of corporate identity by customers should be monitored by regional sales managers. The identified deficiencies are subject to immediate elimination. It is necessary to become the market leader in its segment.

3. Company catalog.

For each group of products, it is recommended to issue advertising brochures describing their benefits and detailed technical information. POS materials are designed to form a culture of consumption, educate customers and partners, and tell them about market trends. Distribution can be carried out in various ways - along with products, at exhibitions, conferences and seminars. Don't overload promotional materials technical details, their purpose is to interest a potential buyer, so they should be understandable, emotional and colorful.

Base your ad campaign with a simple message to improve consumer perception of your brand. The image closest to a wide audience happy person using the products you represent.

5. Education.

Direct communication with your audience is an important step towards becoming a market leader. It is necessary to convey information about the merits of your products to the consumer. One of effective methods are one-day seminars held in different regions of the country. You can invite experts or top managers of your company to the role of lecturers. Training of managers of companies with which you cooperate can be no less effective by organizing master classes on topical issues in production or in the showroom of a distributor company. Based on the task facing the partners, logisticians are appointed to carry them out, technical specialists or marketers.

6. Participation in exhibitions.

Try not to miss a single exhibition, the subject of which allows you to present your products, be it local, regional or federal events. This builds brand awareness and allows you to become a market leader faster. After some time, a distributor will be able to represent the interests of your company at local exhibitions. The design of the exposition should attract the attention of visitors.

7. Working with the site.

The content and design of the site must be given the most serious attention. The main requirement for a resource is its relevance and maximum convenience for users. The site must provide detailed information about each product, including specifications, drawings, photographs, cost. In fact, it should replace the technical product catalog of a company that aspires to become a market leader.

The advantage of the site will be the ability to view it adapted from mobile devices. Provide your Internet resource with convenient online services that will simplify the interaction of customers with your company. Social networks today it is the most important tool for direct communication with consumers, allowing them to maintain a dialogue and quickly answer their questions.

All of the above actions are aimed at reaching the widest possible audience, attracting new loyal customers and, ultimately, becoming the market leader in its segment.

6 tips on how to become a market leader when launching a new product

As mentioned earlier, to become a market leader, you need to offer a product that your competitors don't have. When removing it, adhere to the following recommendations:

1. Study the market thoroughly.

The introduction of a new product must be preceded by marketing research, as a result of which it is necessary to obtain answers to the following questions:

What product does the consumer need?

Who is selling a similar product, what is the cumulative share of your future competitors?

What are the weaknesses of the products already on the market?

What qualities should a new product have in order to get ahead of the competition?

Are there real barriers to entry?

What are the prospects for its growth?

2. Form a competitive advantage.

In order for a product to quickly enter the market and successfully displace competitors, it must have the qualities that the product on sale at the moment is deprived of, and which the consumer expects from it. To determine them, it is worth conducting a large-scale customer survey and consulting with experienced experts.

Although it is often enough to carefully analyze the information that is freely available from the point of view of common sense. This will help to identify the unique features of the product, by launching which, your company will have a chance to become a market leader. In any case, the task that needs to be solved at this stage is to identify areas of development that are promising from the point of view of competition. Depending on the specifics of the activity, they can be different: the composition of the product, its packaging, a wide assortment line, and so on.

3. Use modern technology production.

The latest technology lines allow you to optimize production cycle... This enables the enterprise to become more flexible, to respond promptly to fluctuations in consumer demand, to provide all retail outlets with the necessary assortment.

4. Build distribution channels.

A company that is just entering the market with its own product faces a difficult task - to find outlets that would agree to sell it, because a similar product is already on the shelves. Often creating your own retail network becomes the optimal solution. Points of sale can be located both in residential areas and in the central part of the city. After some time, when the consumer appreciates the quality of the products you offer, it is possible that retail chains themselves will make you proposals for cooperation.

5. Product promotion.

To become a market leader, you must create a positive public opinion about your products. It is necessary to regularly publish materials in the media containing the opinions of authoritative experts, employees of supervisory authorities, confirming the high quality and compliance of the product with all requirements. In the eyes of consumers, you must become a manufacturer that guarantees a wide assortment, convenient packaging, and constant availability of goods on the shelves.

6. Staff recruitment.

Competent selection of personnel is one of the most important conditions, the fulfillment of which will help to become a market leader. There are different approaches to team building. There are executives who are convinced that employees with no industry experience learn new technologies faster, so they prefer them. They believe that the main thing is not the skills that the employee will acquire quite quickly, but his desire for success and the ability to become a reliable member of the team.

Each employee must understand how important his work is for achieving the final result. If you set a goal for your staff, how to become a market leader in one year, this will motivate employees to conscientious observance their responsibilities.

What is the best motivation for employees? Naturally, a decent salary. If your employees receive slightly more than specialists in similar positions in competing companies, their best workers want to go to you. In addition to the principal amount, it is necessary to provide for incentive payments based on the results of work. And most importantly, the staff must feel respectful from the management. It does not require material costs, but highly valued.

A few more important tips for those aspiring to become a market leader:

A sharp increase in sales is not always good for a manufacturer, as there may be interruptions in the supply of products, as well as a lack of finance. In addition, stable production volumes will keep the quality at a high level.

If you are faced with an attempt to copy your products, use sellers in your retail outlets to create a negative attitude towards counterfeiting. Maintain the consistently high quality of your products and your dream of becoming a market leader will come true pretty quickly.

Do not seek to lower product prices. Higher value than competitors will allow you to invest in Newest technologies, to consult with high-level specialists, to conduct master classes for the personnel. Over time, you will be able to purchase additional equipment and significantly expand production.

If you are really thinking about how to become a market leader, these steps will lead you to your goal.

Another 3 Leadership Factors - Development Functions

Leadership theories that are described in the literature are based on a variety of models and matrices, which are not without drawbacks. Based on our own practice, we have formed our own view of how to become a market leader.

Three functions can lead a company to a leading position - strategic management, innovation management and marketing. All of them are aimed at development. They allow you to identify opportunities and determine the potential for profitability. The functions are closely related to each other, which is reflected in the most popular concepts of management - "strategic marketing", "innovative strategies", "marketing innovations". However, very little attention is paid to these most important concepts, and this is done illiterately and ineffectively.

To understand how to become a market leader, you need to properly analyze your business.

There are many ways to analyze a business, but not all of them can be trusted.

For example, Professor Robert A. Howell from the USA, who is considered a recognized authority on accounting issues, believes that the so-called "big three" financial statements - income statements Money(statement of cash flow) and on the balance sheet (balance sheet) - have the same practical use today as the map of Los Angeles in the 1930s.

We have to agree that if financial and accounting performed their function 100%, there would not be so many investment and business projects that fail for reasons that are revealed when nothing can be changed.

Methods for accounting for indirect costs, that is, those that do not relate directly to products or services, are long outdated and impede reliable analysis. Research, which is traditionally conducted for the purpose of market research, also does not differ in truthfulness and does not give an idea of the real state of affairs, because it is based on questions formulated by the researcher himself, while a non-standard approach is required.

The most important decisions in business should be made based on the analysis of the market, products, consumers, competitors, carried out using special methods. In other words, analytical marketing is the basis for further development. Most experts associate it exclusively with Internet marketing, but this concept is much broader.

Without insight into the business, you will inevitably end up with strategy being reduced to planning, marketing is just an ad spend, and innovation is just a minor change in outdated technology. Look at your company from the outside and try to answer simple questions: “Will I be able to become a market leader? Do I know well enough how to achieve this?

Even an elementary business analysis can increase sales by 30, or even 50%, using techniques such as rational reallocation of resources, reduction of unprofitable areas of activity and strengthening of more promising ones.

The methods that we use in our work, in almost every case, identify new opportunities that help companies become the market leader in their segment. Sometimes it is enough to simply abandon the production of certain products or services, and the chances of achieving leadership increase dramatically as free resources appear to achieve the goal.

What tasks does a company need to solve in order to become a market leader based on the results of marketing analytics?

The priority should be a global strategy, that is, the desire to declare itself on the world market. The majority of Russian manufacturers are focused exclusively on domestic consumers and do not even include entering the markets of other countries among their strategic objectives.

Meanwhile, creating a business that can withstand any economic shocks is possible only if it has access to the world market. After all, even a business that was initially designed for domestic consumption (construction services, beauty salons, bakeries) is much more viable if it relies on global quality standards in its activities. Therefore, in order to become a market leader, it is necessary to focus on the requirements of the global market.

Lacking the potential to enter the world market, you have no chance of winning the domestic one either. You can easily be defeated and become the market leader by a competitor with a larger mindset.

For small and medium-sized businesses focused on consumers within the country or only in their region, attention to the structure of costs, the relationship between direct and indirect costs for products or services, as well as to diversification comes to the fore.

Distribution companies should focus on aligning with regional strategy, having a clear understanding of what price range for each product group is demanded by the market, and on the dynamics of changes in consumer segments.

The solution of these tasks will allow not only to become a market leader within a region or country, but will also give an impetus to the development of export potential, remove previously existing barriers. It will be possible to seriously think about finding foreign partners and distribution channels in the USA and European countries.

However, in addition to the will, the implementation of new opportunities will require effective technologies.

In addition to analytical methods that allow you to select the most promising markets, goods and services, there are other technologies that are no less important for companies that are going to become a market leader. One of them is marketing and sales planning. Often, Russian firms put in this concept completely the wrong meaning. A clear symptom of this situation is the lack of relationship between the activities of the marketing and sales departments. The managers of each of them believe that they are the ones who contribute to the receipt of money in the cashier of the company, while the others are doing something incomprehensible.

In a company that has set itself the goal of becoming a market leader, these critical departments must work in full synergy that embodies communication. marketing planning and sales. Moreover, this dependence must be quantifiable. Much attention is paid to this topic in the works of Western marketers.

When the implementation of the marketing and sales plan is approached consistently and accurately, the result exceeds the wildest expectations. Often, a marketing tool that was not even considered a possible use before can cause sales to grow by 30% in 1–2 months, although it costs very little or no cost to the company at all.

For example, today every company, whether it operates in the consumer or B2B market, has fallen under the influence of the SEO fever reigning in Internet marketing.

The effectiveness of this marketing tool is really very high, and in relation to small and medium-sized companies, it will remain relevant for a long time. At the same time, it should be understood that no instrument is universal, and when changing economic conditions it is necessary to be able to find new ways of promotion if the company wants to maintain a leadership position.

SEO optimization bears fruit when several conditions are met simultaneously - a competent allocation of resources between various means of communication, a successful strategy for business units and the company as a whole, optimization of the product portfolio.

If there is growth, but it is in direct proportion to the budget allocated for contextual advertising, then the chances of your company to become a market leader will burst, as soap bubble as soon as you stop investing in SEO. In order to truly control a significant market share, it is worth listening to our recommendations and going through all the steps towards this goal from the very beginning.

To become a market leader requires an organization to learn a wealth of market information that the enterprise often does not have. Therefore, it is worth contacting professionals. Our information and analytical company "VVS" is one of those that stood at the origins of the business of processing and adapting market statistics collected by federal agencies. The company has 19 years of experience in providing product market statistics as information for strategic decisions, identifying market demand... Main client categories: exporters, importers, manufacturers, participants commodity markets and B2B services business.

commercial vehicles and special equipment;

glass industry;

chemical and petrochemical industry;

Construction Materials;

medical equipment;

food industry;

production of animal feed;

electrical engineering and others.

Quality in our business is, first of all, the accuracy and completeness of information. When you make a decision based on data that is wrong, to put it mildly, how much will your loss be worth? When making important strategic decisions, it is necessary to rely only on reliable statistical information. But how can you be sure that this information is accurate? You can check it! And we will give you that opportunity.

The main competitive advantages our company are:

1. Accuracy of data provision... The preliminary selection of foreign trade supplies, the analysis of which is made in the report, clearly coincides with the subject of the customer's request. Nothing superfluous and nothing overlooked. As a result, at the output, we get accurate calculations of market indicators and market shares of the participants.

There are several principles in the enterprise management system, adhering to which it is possible not only to maintain the activity at the proper level, but also to develop steadily. For example, using a well-thought-out system of actions at all levels: from managers to ordinary low-level performers. It is best to stick to an already existing, proven approach when planning the activities of the enterprise today and for the future. In global practice, there are four such approaches, they are called reference business development strategies. You may also hear the name basic (basic).

Business reference strategies - basic types and characteristics

By taking one of four approaches, entrepreneurs focus on one or more of five basic elements: the market, product, technology, market industry, or an enterprise's position in the industry.

Before applying any of the reference strategies, you must clearly decide for yourself what goal you intend to achieve. And then, based on this, plan your actions.

Business reference strategies fall into four main types:

concentrated growth strategy;
integrated growth strategy;
diversified growth strategy;
reduction strategy.

Each of these types is divided into several subtypes. Let's consider them in more detail.

Concentrated Growth Strategy

The application of a concentrated growth strategy is to change either the product or the sales market. It makes sense to use this approach when the company has existed for several years, has earned a certain reputation and has taken its own niche in the market. There are three types of concentrated growth strategy:
strategy for strengthening market positions;
market development strategy;
product development strategy.

Market position strengthening strategy

The company's actions in this case are aimed at expanding and gaining new positions in the old sales market. This is achieved by increasing and diversifying advertising, holding various promotions for consumers, enticing buyers from competitors, even rather tough methods of competition are allowed.

Market development strategy

This strategy is about finding new sales opportunities for an existing and marketed product. Markets can be new geographically (opening branches in other cities and countries), or a new industry can be mastered in which the same product can be applied as in the already mastered one.

Product development strategy

It is used if it is required to bring sales to a new level, to return the faded interest of buyers, to promote a novelty. It is possible to develop both an existing product (improve quality, change packaging, expand the range), and a completely new one in an already developed territory.

Integrated growth strategy

This type of reference strategy involves changing the enterprise itself within the industry by expanding or restructuring it. If for some reason it is not possible to use the system of concentrated growth, you can apply this approach, or you can use both at the same time.
The integrated growth system is divided into three subtypes:

reverse vertical integration strategy;
forward-looking vertical integration strategy;
horizontal integration strategy.

Reverse vertical integration strategy

The company is developing due to increased control of suppliers, as well as through the opening of branches that will deal with supplies. As a result, the company gains independence from changes in raw material prices and from suppliers.

Forward vertical integration strategy

Implementing this strategy, the company develops an intermediary niche: either buying out their business, or strengthening control over the activities of intermediaries. If your business is not satisfied with the quality of the sales and distribution structures, you should not hesitate to apply a strategy of forward-going vertical integration.

Horizontal integration strategy

To some extent, the methods of this strategy overlap with the strategy of strengthening the position in the market, because they involve the establishment of control over competitors or the takeover of their enterprises.

Diversified growth strategy

In the case when large enterprise has fully mastered its market with all possible nuances and techniques and fully realized all the possibilities of promoting an existing product, it is necessary to implement a diversified growth strategy, which consists in the development of new areas.

If the demand for your product falls, the antitrust system blocks the development of your expansion within the existing framework, you want to invest excess funds in the development of a new one, maybe enter international markets, as well as, if possible, reduce taxes, apply a diversified growth strategy.

It is divided into three subtypes:

centralized diversification strategy;
horizontal diversification strategy;
conglomerate diversification strategy.

Centralized diversification strategy

Using this approach, you, leaving unchanged the production of the main product (keeping it in the center - hence the name), on the basis of existing technologies, raw materials, distribution network, your promoted brand name, start the release of a new product or acquire a corresponding enterprise.

For example, if you are engaged in woodworking, you can collect and sell furniture from leftover raw materials, or you can purchase a furniture salon.

Horizontal diversification strategy

This strategy consists in the release of a product accompanying your existing one, using new technologies and using an established sales market.

For this approach to be successfully implemented, the new product must be focused on the familiar consumer.

For example, if you produce sports nutrition, you can start the production of sportswear or sports equipment.
Typically, consumers become attached to a particular brand, so a new product is likely to be accepted as well as an existing one.

Conglomerate (unrelated) diversification strategy

The most complex, costly and unpredictable strategy, which consists in the release of a fundamentally new product and the development of a completely new market.

It would seem, why take such a risk and try to start all over again from scratch? But if the enterprise is large enough, stable, then why not try your hand - if everything goes well, trademark will become more recognizable, and the crisis in several industries at the same time, as a rule, does not happen, therefore, risks will decrease.

Reduction strategy

Sometimes it is wiser to change the structure of an enterprise or even close it completely without waiting for complete bankruptcy or even further deterioration of the situation (for example, due to a downturn in the market or a general economic crisis). But the reference reduction strategy is applied not only in such gloomy conditions, it happens that the enterprise needs restructuring even after a period of intensive development.
There are four subtypes of pruning strategy:

elimination strategy;
harvesting strategy;
a strategy for reducing economic zones;
cost reduction strategy.

Elimination strategy

This strategy is implemented in the very cases when the situation is unfavorable, and implies the complete or partial closure of either the enterprise itself or part of its branches. You can also stop the production of an unprofitable product.

Harvesting strategy

If some branch of production does not bring the desired income, is unpromising, and its sale will not bring tangible funds, you can try to achieve a good profit by introducing a “harvesting” strategy. It consists in a gradual reduction in production (staff reduction, reduction of purchases, sale of equipment) and at the same time active marketing of the existing product (often at reduced prices). By closing production gradually, you can get the maximum total return.

Strategy for reduction of economic zones

If you need to invest in any industry or production with long-term planning, you can liquidate a certain industry, division or part of branches that are now bringing less income - this is the so-called strategy of reducing economic zones.

Cost reduction strategy

As the name suggests, this approach is aimed at minimizing costs: reducing purchases, laying off personnel, temporarily stopping production, etc.
Typically, this strategy is applied temporarily when the business needs to go through difficult times.

We have briefly described to you the reference development strategies and the principles of their operation. Which strategy to choose and apply is up to you. Most often, several strategies or a combination of their elements are used simultaneously.

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