Typical (basic) strategies. Typical Competitive Strategies Organization Model Business Strategies

Historically, most of the most famous model tools of strategic management were developed approximately by the following logic scheme. Potentially efficient corporate strategy (The overall strategy of the holding structure) is basically the result of a number regular typical solutions Including selecting one alternative From the specified set model strategies For each specific business of this corporation (holding structure).

Model BCG.

Scheme 3.6.5 to the specified strategic perspective shows: a solid line is priority Directions of investment OT. dyunny cows; and the stroke line - desirable For holding structure Evolution hard children and stars.

Hence, bCG model First of all, each specific holding structure helps to solve two typical strategic issues:

  • 1) achieving which market position Need to put as a strategic goal for this business in a given strategic perspective;
  • 2) what specific businesses This strategic period should direct investment Which, including formed and at the expense of income from other specific businesses.

Model BCG. It offers the following typical set of strategic solutions for specific businesses, depending on their getting into the Goth or other quadrant of the matrix.

  • 1. "Stars" It is necessary to protect and strengthen, i.e. The share of the relevant business in this market in a given strategic perspective should be kept or increasing.
  • 2. "Doyle cows"It is necessary to preserve, hard to control and, of course," milk ", i.e. on such businesses to the specified strategic perspective, special optimal investments should be established (necessary only to maintain this business) and they are strictly controlled; and relative excess cash cash (Cash Flow) From such businesses to send other businesses.
  • 3. "Difficult children " It should be studied specifically, i.e. According to such businesses in a given strategic perspective in accordance with the characteristic features of a particular situation, it is possible: or through target investments some business try to translate into "stars", or the existing market share to save, or this particular business is beneficial to sell (reduce to optimal size).
  • 4. OT. "Dogs" It is necessary to get rid of, i.e. Relevant businesses in a given strategic period or are reduced or, as a rule, are eliminated (if there are no particular reasons for their conservation).

Apply Model BCG, " stars"ignite stronger." Cows"Take care and dug." Hard children"Build in" stars", but " dogs" gonite.

Pretty wide and long practice models BCG. I revealed both its advantages and disadvantages, and also identified quite clear boundaries of its use. Since the situation with the restrictions on the use models BCG. is typical for all other similar models, then we formulate a common npavo conformity.

Conformity rule.EVERY specific situationfirst of all it is very careful checkfor compliance all prerequisites for this typical model ; if a will reveal at least onesuch inconsistency, then model not recommended.

Scheme 3.6.5. The matrixBCG.

We comment on this rule on the example models BCG.

To premise or restrictions models BCG. First of all refer the following.

1. The strategic prospects of all specific businesses of this company must be commensurate in terms of growth rate.

At a minimum for this you need:

  • - firstly, in order for all businesses the relevant products in the strategic perspective under consideration remained in the unchanging phases of their life cycle;
  • - Secondly, in a given strategic perspective, all significant external uncertainty factors are excluded, which can change the already specified trajectory of the growth dynamics of the relevant business in relevant specific markets.
  • 2. In this particular business in the strategic perspective under consideration, the development of competition should occur so that it would be enough to know the values \u200b\u200bof only one indicator of the relative market share to identify the future market position. according to the BCG model method.

In this way, if a in your particular situation For a given strategic perspective, the growth in the size of the relevant market in demand may be a reliable meter of possible development. your concrete business, and at the same time competitive position your holding structure It can be estimated by its share in this market, that apply BCG model Which is good for its simplicity and clarity.

But if The specified strategic perspective seems to significantly more complex and (or) the relevant competition conditions also seem significantly more complex that do not use Classic BCG model. I.e other tools are needed and strategic analysis, and strategic synthesis; in general, another model is needed. To build (design) a common strategy of business set your holding structure. Models BCG. The following sources are recommended: [Ansoff, 1989]; [Thomson-ml., 2013]; [Kotler et al., 2012]; ; .

A variety of approaches to the development of corporate strategy

Corporate strategy - as a complex system - can have several substantially different conceptual constructions based on their key subsystems. The specified paragraphs are relatively detailed by 3 logic of such constructions in both the design and analytical and in activity and practical aspects.

Firstly, Of all the strategies of the main subsystems of the organization, one key strategy (product marketing) is allocated, through which - largely determined and is determined - the whole process of working for all other private strategies of the organization, as well as its corporate strategy of a whole.

Such logic of building a corporate strategy can be called logic Primary discharge leading key Subsystem strategies with subsequent derivatives on its basis of all other subsystem strategies, as well as a corporate strategy - as a system as a whole.

Secondly, At the present stage, one of the most efficient constructions of the corporate strategy is to create an effective system of effective strategies for individual business business.

Thus, the second logic of the formation of a corporate strategy - Logic system of strategies of individual businesses.

Thirdly, The idea of \u200b\u200bthe corporate aspirationist complex of the strategies of the main functional areas of the organization's activities.

In other words, the third logic of the corporate strategy is the logic of building a system of functional strategies.

In connection with the foregoing, it should be noted that there are other logic or principles as the initial partition (analysis) and the subsequent reunification (synthesis) of the corporate strategy.

So, in parallel with the specified, the so-called so-called "Resource Approach" to corporate strategy.

In addition, not only popular, but, according to many specialists, is very productive and promising - is the concept that proposes to create a corporate strategy primarily - based strategies of the main elements of the so-called "Key competence" Organizations.

It is necessary to allocate only 2 principal positions.

1. Two additionally mentioned logic (approach), as well as all other unnamed, is not worse and no better - three previously represented logics of building a corporate strategy.

2. In Russia, compared with all other concepts, a relatively more famous is a functional approach.

Taking into account the specified positions - in relation to the development of corporate strategy and strategic management as a whole, it is necessary to emphasize the following:

1) according to the criterion of finite efficiency, overly absolutized or traditional functional approach has its internal significant limitations;

2) Therefore, - for victory in a modern competition in one strategic perspective - a traditional functional and strategic hike is advisable to complement with different other methodological approaches and relevant methods for building effective strategies.

In such a context, polyphonic in the development of a corporate strategy becomes not only possible, but the main thing is very useful and effective.

Reasonable sufficiency or principle of "OKKAMA razor" for strategy

Specific commercial organizations that actually function in various specific situations - a great set.

Hence final choice - both on a fundamental approach and on specific tools - we'll have to do alone.

Therefore, such a choice:

first, it must necessarily be based on a very serious analysis of exactly your particular situation;

So peculiar strategic optimality - This ability to combine reasonable sufficiency on the effectiveness of a strategy with a relative minimum on efforts and in general - on the cumulative costs of its creation.

The organic of the corporate strategy

Between the corporate strategy and its operational-tactical embodiment must exist effective organic transition.Corporate strategy as "Development" - is obliged to be organic Design integrity; And as a long-term program of concrete actions, it is such integrity and organic - Must be peace practically; etc. That is why the following two positions should be focused.

1. Attainment really full-fledged those. All-wing and pass-cutting the organicity of the corporate strategy both in all its subsystems and elements and in all processes of its development - this is a compulsory substantial requirement for the strategy of a modern commercial organization.

The requirement of objective trends of modern competitive struggle is set - in almost any business.

2. The initial corporate strategy and the general primary model of strategic management - any organization, should be quite effective. And at the same time (and in some specific situations - especially) they may remain relatively simple. No further - the long-term trajectory of the modern commercial organization - should be determined by the adequate development of its overall strategy.

That's why modern corporate strategy , as the most common strategy of the organization, under the influence of already occurring, as well as possible changes in an indefinite and constantly complicating external environment, obligated itself continuously, flexibly and adequately change; That is - develop as relatively independent and really full organic system.

Basic competitive strategies

M. Porter presents three types of general strategies aimed at improving competitiveness. A company that wants to create a competitive advantage must make a strategic choice to "not lose his face."

For this there are three basic strategies:

1) leadership in reducing costs;

2) Differentiation;

3) focusing (special attention).

To satisfy the first condition, the company must hold costs at a lower level than competitors.

To ensure differentiation, it must be able to offer something unique in its kind.

The third version of the strategy proposed by the Porter suggests that the company focuses on a specific group of buyers, a certain part of the product or on a specific geographic market.

There are only two ways to achieve optimal functioning: either you become in your industry by the manufacturer with the lowest level of cost, or differentiate your products / services in those directions that are applied by the buyer to such an extent that it will pay the highest price to get them. Firms can choose whether to apply these strategies on a wide market or on a narrow segment of the market, where their activities are focused.

Typical strategies


Typical situations

Comprehensive strategy of the organization

1. Commodity Market Strategy - A combination of strategic decisions that determine the nomenclature, the volume and quality of products and the methods of behavior of the enterprise in the commodity market.

2. Resource Market Strategy - A combination of strategic decisions that determine the behavior of the enterprise in the market of production and financial and other factors and resources of production.

3. Technological strategy - Strategic decisions that determine the dynamics of technology technology and the influence of market factors.

4. Integration Strategy - A combination of solutions that determine the integration functional management interactions of an enterprise with other enterprises.

5. Financial and investment strategy - A combination of solutions that determine how to attract, accumulate and spending financial resources.

6. Social Strategy - The combination of solutions that determine the type and structure of the team of employees of the enterprise, as well as the nature of interaction with its shareholders.

7. Management Strategy - A combination of solutions that determine the nature of the enterprise management when implementing a selected strategy.

Recently, many enterprises rebuild their internal production and technological and organizational and management structure, perform the redistribution of the rights and obligations of various divisions and subsystems. In this regard, it seems appropriate at this stage of the development of the economy to allocate an additional section of the strategy.

8. Restructuring Strategy -the combination of solutions to bring the production and technological and organizational and management structure in line with the changed conditions and strategics of the enterprise.

It should be noted that the basis of the comprehensive strategy of the company is a commodity-market (product-marketing) strategy.

Product Marketing strategy

The product marketing strategy is a corporate strategy subsystem that is aimed. for analysis, development and adoption of a complex of strategic decisions in area nomenclature, range, quality and product production organizations as well - product implementation in relevant markets.

Primary level of products and marketing strategy

The product marketing strategy, at a minimum, must answer the following key questions:

1. What kind of products will be made and sold by the organization?

2. Kom. Will the organization products be sold?

3. Where (In which regions and points) will the organization products be sold?

4. As priceson the organization's products compete now and will be compete Are the prices of the corresponding analogues?

5. howorganization sets prices On your products: Is it a price leader or establish them after competitors?

6. What is the strategyorganizations B. promotion and distribution areas His products in relevant markets?

Product analysis of development (reform) commercial

organizations

Product Marketing Strategy / program

Typical business strategy models

So historically it happened that most of the most well-known model tools of strategic management were developed approximately following the following logical scheme: an effective corporate strategy is basically the result of a number of proper typical strategic decisions, including the choice of one alternative to the specified set of standard strategies for each organization's business set.

Comparison of growth rates and market share (model BCG)

The first model of corporate strategic planning is considered to be the model of "growth-share", which is more known as the BCG model. This model is a display of business positions in the strategic space, determined by two axes of coordinates, one of which is the growth rate of the product market, and the other is the relative share of the company's products on the market of this product.

(model GE / McKincey)

The focus of this model lies future profit and the future return of investments that can be obtained by the company. All types of business companies are ranked in terms of obtaining additional investments in quantitative and qualitative parameters. Moreover, not only current sales, profits and capital duty, but also other factors are: variability of market share and technology, personnel loyalty, competition level, social need.

The GE / McKincey matrix has a dimension of 3x3. The axis is the attractiveness of the market and the relative advantage of the corporation on the relevant market.

The matrix allocates three areas of strategic positions:

1) the winners area;

2) the area of \u200b\u200bthe losers;

3) Average area.

Types of business that fall into the "winners" area have the best or average values \u200b\u200bof the factors of the attractiveness of the market and the benefits of the company in the market compared to the rest.

In the "medium" area includes positions that are consistently generated by profit from business, medium business positions dubious types of business.

The "losers" includes such types of business that have at least one and lower and do not have any of the highest parameters discharged on the axes.

Comparison of the attractiveness of the market and competitiveness

(model Shell / DPM)

This model is a two-dimensional matrix where the axis reflects the strengths of the enterprise and the industry attractiveness. The matrix is \u200b\u200bdivided into 9 cells, each of which corresponds to a certain strategy. Positions:

business leader;

growth strategy;

cash generator strategy;

strategy of strengthening competitive advantages;

continue business with caution;

partial coagulation strategy;

give the volume of production or minimize business;

continue business with caution or partially rolling production;

business coagulation strategy.

Analysis of the evolution of the market (model HOFER / Schendel)

This model focuses on the positioning of existing business species on the matrix of the development of the goods market, determining the ideal set of these types of business and the development of ways to form such an ideal set.

In principle, there are two optimal sets: the purchase of a new (and / or strengthening of the existing) type of business sales (and / or weakening the existing) type of business.

In his model, Hofer and Shendel offer three types of perfect business set at the corporation level:

1. Growth set.

2. Profit set.

3. Balaxy set.

At the same time, corporations may strive to achieve one set of three.

The matrix has dimension 3x3. On one axis, the market development stages are displayed: market development, growth, extrusion from the old product market, maturity and saturation; On another axis - the relative competitive position of the type of business in the framework of the industry: strong, medium and weak.

Depending on the view of the type of business, there are generalized strategies:

strategies for increasing the share in the market;

growth strategies;

profit strategies;

market concentration and assets reduction strategy;

promotion or shift strategies;

liquidation and separation strategies;

The Hofer / Schendel model is primarily intended for balancing a corporate business portfolio. The model can also be used to analyze competitors, both on corporate and business level.

The basic theoretical assumption of this model is the assumption of the presence of a typical sectoral life cycle or the market development curve. In this case, this curve is essentially similar to the sales curve.

Analysis of the life cycle of the industry (model ADL / LC)

The main theoretical position of this model is that a single business corporation may be on one of the stages of the life cycle, and therefore, it must be analyzed according to this stage.

The matrix consists of 20 cells. According to the axes, 4 stages of the life cycle and 5 competitive positions are postponed. Depending on the view of the type of business on the matrix, a carefully thought out set of strategic solutions is supposed.

The basic concept is that the corporation business portfolio must be balanced. At the same time, such a portfolio has the following features:

1. Types of business are in various stages of their life cycle.

2. Cash flow is positive.

3. The weighted average rate of profit on pure assets (RONA) for all types of business meets the objectives of the corporation.

4. The more types of business that occupy a leading, strong or favorable position, the better the corporation's business portfolio.

Defining a strategic position

To determine the strategic position, the method of approximate calculation is used. According to this method, the strategic position of the organization is determined by the degree of compliance of the development strategy, macro conditions, microdelines, market conditions and industry conditions.

Kmakrobroviam, in which the implementation of the strategy is assumed primarily:

social conditions;

political conditions;

economic conditions;

technological conditions.

The microclies of strategies are formed by the following systems of the organization:

production and technological system;

financial and economic system;

control system;

production and marketing preparation system;

corporate culture system.

Industry conditions for the implementation of the strategy are influenced by:

structures and dynamics of the competitive environment of the industry;

threats of potential competition;

provisions of buyers in the industry;

provisions of suppliers and industry;

pressure producers of substitutes.

Market conditions for the implementation of the strategy are determined by:

potential (size) of the market;

market structure and potential segment;

age of the market;

elasticity of demand;

key market success factors.

Functional strategies

Production strategy

for a period of T-Summer Corporate Strategy

Comparative characteristics of strategy types

Competition is rivalry between commodity producers for more favorable conditions for the production and sale of goods for obtaining the highest possible profits on this basis. Competition is the most effective method of economic control, as it is worth the minimum cost society.

The competitiveness of the organization is the possibility of implementing effective economic activities and its profitable implementation in a competitive market. Competitiveness as a phenomenon is a combination of high-quality and cost characteristics that ensure the satisfaction of a specific need.

As an example in Fig. 1. A graphical model of comparison of the competitiveness of two organizations in eight parameters is given.

Fig. 1. Orientation of competitiveness

The combination of various goods on the market and various consumer directivity allows us to talk about some types of competitors, the main of which are shown in Table. one.

To analyze competitors, it is necessary to identify all real and potential competitors and consider them from the point of view of possible strategies; current position; financial opportunities; entrepreneurial philosophy and culture, as well as goals.

The study is carried out in three stages that suggest:

  • identifying applicable and potential competitors;
  • analysis of indicators, goals and strategies of competitors;
  • determining the strengths and weaknesses of competitors.

According to the classification of P. Doyle, a group of direct competitors using the cost leadership strategy seek to conquer the market with low prices by minimizing all types of production costs and product sales. The efforts of the differentiation group are aimed at satisfying the greatest degree of consumer requests for the main parameters of products.

Table 1. Types of competitors

The focusing group concentrates its efforts not in the market as a whole, but on its segments, where competitors seek to win buyers of the first first groups. However, indirect competitors with their substitute goods or similar services are often submitted for the organization of no less danger. In addition, over time, competitors acquire knowledge and experience, allowing them to go to the strategic group held by the Organization and become direct competitors.


Fig. 2. Strategic groups of direct competitors: A, B, B, G, D, E - Competitors

The identification of competitors is carried out on the basis of one of the approaches.

The first approach is associated with the assessment of the needs satisfied in the market by the main competing firms, the second - focuses on the classification of competitors in accordance with the types of market strategy used by them.

With the first approach, competing firms are grouped in accordance with the type of needs that satisfies their products. In the second case, competitors are classified in accordance with the key aspects of their orientation in production and sales activities.

Strategic areas of competition

A competitive advantage is formed as a result of the implementation of one of the competitive strategies: leadership in costs, differentiation strategies, optimal costs and focusing. There are two ways to establish the costs of costs: 1) to make work better than competitors; 2) correct the structural and functional indicators of costs - chains of values \u200b\u200b(hereinafter referred to as the CCC).

In compact form, the necessary information is presented in Table. 2.

Table 2. Cost leadership factors

Cost management

Influence of management

Improving chains of values

Protection of leadership in costs

Structural components

Savings or loss on scale of production can be identified or created in any value chain link

The effect of learning and experience curve (by increasing labor efficiency; creating product modifications that increase production efficiency; re-equipment of the machine park; receipt of private information from suppliers, consultants and former employees of competing firms)

Communication with other activities in the chain of values. For example, identify those moments where suppliers and companies have high costs because there are no coordination and joint optimization.

Sharing the possibilities of various production units within the organization (savings on the scale of production, reducing time to create a new technology, etc.)

Increase / reduce the number of products offered

Add / cut services provided to buyers

More / less distinguishing features in the quality characteristics of the goods

Pay more / less employees relative to competitors in similar industries.

Increase / reduce the number of different distribution channels for the sale of firms

Simplifying the development of goods, removal of excesses

Reengineering of the main production processes

Use more rational technology

The use of sales to the final consumer and marketing approaches that are reduced by unnecessarily, large costs and profits of wholesale and retailers (often 50% of the final price, which the buyer pays)

Transfer of production facilities closer to the consumer / supplier

Cost leadership gives the best positions for the offensive, protection, increase in sales or secretion of market share

Afrait of the power of buyers, the company with low costs often retains the level of profit

The company with low costs is better protected from dictate suppliers, if the basis for its competitive advantage on costs is a more advanced internal organization.

Benefits of vertical integration compared with the issue of certain types of activities outside the company (giving significant trading force, reduction of joint costs)

Dependence on geographic location (employee's salary level, tax paid, energy costs, costs for receiving and shipping products, chartering)

Functional components

Advantages and disadvantages of pioneers (trademark and additional costs)

Power load percentage

Strategic elections and production solutions

Increase / reduce the level of research on competitors

Spend more / less effort to increase productivity and efficiency relative to competitors

Increase / reduce specifications for acquired materials

Achieving a greater economic level of vertical integration compared to competitors

Introduction to the life of an approach "Something for each" and focusing on a limited set of goods / services in order to meet special, but important requirements of the buyer and eliminate unnecessary actions and costs associated with a large number of product modifications

From the standpoint of potential market participants, the cost leader can reduce the price to make a more difficult conquest of customers for newcomers in competition against the company's goods leader on costs has good positions, as the use of low prices - good protection against companies trying to implement similar goods to the market

Characteristics of typical competitive strategies

Low Strategy Costs are especially important in the following cases:

  • price competition among sellers is particularly strong;
  • manufactured in the industry product standard;
  • differences in the price for the buyer are essential;
  • most buyers use the product in the same way;
  • costs of buyers for switching from one product on another low;
  • there are a large number of buyers who have serious power to reduce the price.

Strategy risks to achieve low costs: Technological breakthrough of competitors; Simple ways to copy the cost leader skills; excessive concentration on the reduction of costs and blindness in relation to other areas; Changing the buyer's preference and the wish of a good quality product; Crane vulnerability in a given technology.

Differentiation strategy It becomes attractive as the preferences of buyers are diverse. The company must study the requests and behavior of buyers. A competitive advantage appears when a large number of buyers will be interested in the proposed attributes and characteristics of goods.

Successful differentiation allows the company to establish an increased price for goods; increase sales; Won the loyalty of buyers to their trademark.

Differentiation schemes: distinctive taste, specific properties, delivery of small mail, delivery of the product for 24 hours, more value of goods for the same money, prestige and distinctness, quality of execution, technological leadership, full-scale service, the highest image and reputation. Differentiation is attractive because:

  • creates input barriers;
  • smoothes the influence of the power of buyers;
  • it helps to avoid the threat from substitutes.

Differentiation works better in those markets where there are many ways to change the goods and the buyer is aware of these differences as having value; The needs of the buyer and ways to use the goods are different; A small number of competitors applies a similar approach to differentiation.

Risks of differentiation strategy. If the buyer sees little value in uniqueness, then the cost strategy will win. In addition, competitors can copy all innovations.

Strategy of optimal costs. The strategy is focused on providing buyers "more value" for their money. This implies a strategic orientation to low costs and at the same time providing the buyer somewhat more than the minimum acceptable quality, service, characteristics and attractiveness of the goods.

The strategic goal is to become a manufacturer of goods with low costs and distinctive characteristics from good to excellent, and then, using cost advantages, reduce the price compared to similar goods produced by competitors.

The strategy is attractive from the point of view of competitive maneuvering. The company with optimal costs can offer the product of the middle class at a price lower than moderate or good quality at an average price.

Focused strategy Low costs and differentiation is focused on the narrow part of the market. The goal is to better fulfill the maintenance of buyers of the target segment.

The focused strategy of low costs is associated with a market segment, on which the requirements of buyers to costs (and, consequently, price) are significant in contrast to the rest of the market space. Costs are reduced by the use of trademark (no cost advertising, marketing), orientation on customers who do not examine the market (do not pay for consultation).

Focusing gives good results when the company finds ways to reduce costs, limiting the number of buyers in order to find out their niche well. Focusing is advisable when:

  • the segment is too big to be attractive;
  • the segment has a good growth potential;
  • the segment is not critical for the success of most competitors;
  • the company that uses the focusing strategy has enough skills and resources for successful work in the segment;
  • the company can protect himself from challenging competitors thanks to customer benevolence to its outstanding abilities in servicing the buyers of the segment. The risks of the focused strategy: there is a possibility that competitors will find the opportunity to come close to the actions of the company at a narrow target segment; The requirements and preferences of consumers of the target market segment are gradually applied to the entire market;
  • the segment can become so attractive that it will cause the attention of many competitors.

Strategic advantages of vertical integration. If vertical integration does not lead to a significant reduction in costs or to obtain additional advantages, it is not strategically justified.

The "Back" integration leads to a decrease in costs when the required production volume is so great, which ensures the same savings on the scale of production, as well as in suppliers (and vice versa). It also reduces the company's dependence on suppliers.

Integration "Forward" creates a network of dealers related to dealers representing the company's products to the end user (this can give a decrease in costs).

For manufacturers of raw materials Integration into production can contribute to greater product differentiation and help avoid price competition with other producers of raw materials.

However, the closer the supplier to the manufacturer's activities, the more opportunities for the firm to escape from this competitive environment and differentiate the final product due to design, maintenance, quality, packaging, etc.

Strategic disadvantages of vertical integration:

  • increases investment in the industry, technologies are preserved;
  • limits the company in freedom of selection of suppliers;
  • requires balancing the power at each stage in the value chain (when the possibilities of production in one of the links exceed the needs of the other, excess must be sold);
  • requires various skills, business abilities and ability to analyze the situation;
  • integration with parts manufacturers can reduce the production flexibility of the company (frequent caller requires costs).

So, the integration strategy has both strengths and weaknesses. The choice depends on the following:

1) whether integration is capable of improving strategically important areas of the Company in the direction of costs or an increase in differentiation;

2) how it affects the capital costs, flexibility and speed of response, administrative costs;

3) whether it is capable of creating a competitive advantage.

Structural analysis of the activities of competitors is part of the overall assessment system and is carried out in this way, in which the forms and methods of commodity policy of competitors are found; Dynamics of changes in competitors; Analysis of product stimulation tools for competitors.

The most important parameter of competitiveness is the quality of goods. Quality is a combination of properties and characteristics of the product that gives it the ability to satisfy the conditioned or alleged needs.

This and other competitiveness parameters allow us to evaluate the underlying organization compared to competitors. An example of such a comparison is given in Table. 3. The strategic assessment of the company's external environment requires a response to seven questions. Below are these questions.

Table 3. Detection of the strengths and weaknesses of the organization compared to competitors

Characteristics of competitiveness

Options Features competitiveness

Estimates of the parameters

organizations

competitors

Marketing advantages

Market share

Product quality

Service level

Customer Contact Efficiency

Ways to distribute goods

Geographical characteristics of the market

Financial stability

Business profitability analysis

Cash Motion Analysis

Analysis of the size of current debt

Efficiency

Level of expenses

Production capacity data

Technical staff skills

Supply opportunities

Organizational opportunities

Potential leaders

Motivation of employees

Ability to adapt

Availability of entrepreneurial abilities

Factors affecting the situation in the industry

1. What are the main economic indicators of the industry?

The industry is largely different from each other in such characteristics as the size of the market, the scale of competition, market growth rates, the number of buyers (sellers) and their relative size, the complexity of entering the industry and exit, the degree of vertical integration of sellers, pace Technological changes. These indicators also include the size of savings on the scale of production and the effect of the experience curve, the degree of standardization or differentiation of competitors' products, yield (profitability).

The factors that need to be explored to determine the main characteristics of the industry:

  • market size;
  • compete scale;
  • market growth rates and stage on which the market is located;
  • the number of competitors and their relative sizes;
  • the number of buyers and their financial capabilities;
  • integration is "forward" or "back";
  • directions and the pace of technological changes;
  • ease of entering the industry and exit;
  • products of competitors are highly differentiated or practically the same;
  • have companies have the opportunity to exercise savings on the scale of production, transportation, marketing when conducting advertising events;
  • whether the high degree of production capacity is the most important condition for achieving a low level of production costs;
  • does the curve of "learning-experience" in the industry so that the average price of the product decreases, as the cumulative release of Ros;
  • whether the required investments are carried out in the industry;
  • does the industry have a yield higher or below the average profits in general.

Example: a set of basic economic indicators and strategic importance of key economic characteristics of the industry.

2. What competitive forces act in the industry and what are their influence?

The level of competition is determined by five forces: rivalry between sellers within the industry, the presence of attractiveness of substitute goods, the possibility of entering the industry of new competitors, the influence of suppliers and the possibility of consumers to dictate their conditions. The task of analyzing competition in the industry is the assessment of each strength, the determination of its degree of pressure and then an analysis of the competitive strategy on which the company should be focused, taking into account the competition existing in the industry, which is aimed at:

a) isolate the company as far as possible, from the impact of five competition forces;

b) use the "Rules" of competition in the industry for the benefit of the company;

c) conquer a competitive advantage.

Model of five forces:

1. Rivalry between sellers:

  • low prices;
  • improved product characteristics;
  • service level;
  • warranty period;
  • methods of promoting goods to the market;
  • new products (all resources and power of competition).

Competition intensity factors:

  • the number of firms;
  • growth in demand for products;
  • price reduction, sales growth, reducing stocks;
  • costs of buyers to change firms;
  • dissatisfaction of some companies in market share companies;
  • profitability of the industry;
  • exit costs;
  • rocking the market due to the difference in companies;
  • buying a large company of another industry of Outsider, who could become the industry leader.

2. Entrance to the industry of new competitors (barriers):

  • savings on the scale of production (large volumes immediately produce difficult, risk, overproduction);
  • the impossibility of access to know-how and technologies (need special knowledge and experience);
  • effect of training curve (production experience);
  • consumer commitment to brands (discounts, quality, service);
  • capital investment size (% on loans, client conquest);
  • inequality in costs (cheap raw materials, know-how, curving experience, geography,% loan);
  • access to sales channels (wholesale, retail, advertising, dealers);
  • actions of control of the authorities (licensing, environmental protection);
  • tariffs and non-tariff restrictions (government restrictions).

3. The impact of substitutors' goods - competition with other industries:

  • affordable prices;
  • quality and characteristics of products;
  • completeness of switching for consumers;
  • the complexity of the retraining of employees, technical assistance;
  • spending time to check reliability and quality;
  • psychological costs.

4. Competitive power suppliers:

  • significance for the consumer;
  • standard products suppliers;
  • quantity;
  • severity needs;
  • the volume of the batch of the substitute goods;
  • close ties with suppliers;
  • share of supplier products in the price of production;
  • influence of supplier products on quality;
  • the cost of transition to another supplier;
  • the tendency of suppliers to assignments;
  • the ability to vertical integration.

5. Competitive power of buyers:

  • the magnitude of buyers;
  • sentence;
  • impact on prices, quality and level of service.

The strategic meaning of five forces is the structure of the forces and the nature of the struggle.

The structure of competition in the industry is unattractive, if rivalry between sellers is great; Low market entry barriers; Competition from substitutes is great; Sellers and buyers can receive significant benefits from participation in transactions.

Ideal competitive environment: suppliers and buyers have weak positions; No good substitutes; Entrance barriers are high; Competition between sellers moderate.

The strategy must perform the following actions:

1) isolate the company from five forces;

2) influence competition in advantageous for the firm direction;

3) Provide a strong position in a competitive game.

3. What causes changes in the structure of competitive forces in the industry and the environment?

Driving forces are changes in the long-term trends in the economic growth of the industry; Changes in consumers; introduction of new products; access to the market or care of large firms; globalization; Changes in cost and performance structure; Consumer preferences to standard products from differentiated; The impact of changes in government legislation and policy; Changes in social values \u200b\u200band lifestyle, reducing uncertainty and risk.

The main driving forces are usually 3-4. The analysis of the driving forces set:

1) determine which driving forces have the greatest impact;

2) set the dimensions and effects of influence;

3) Adjust the strategy to the action of driving forces.

4. Which companies have the strongest (weak) competitive positions?

To answer this question, the development of strategic groups is being developed. Rivals belonging to the same or closely standing strategic groups are close competitors.

Algorithm for compiling a group of group structure (Fig. 3):

  • install the entire spectrum of characteristics (price / quality level, geographic activity, vertical integration, assortment set of products, used distribution channels, set of service services);
  • apply firms on the map;
  • combine firms that have fallen about one space;
  • draw a circle (diameter is proportional to the share of the group in total sales).
  • variable card fields should not be very correlated;
  • variables should show large differences in positions occupied by firms in a competitive struggle;
  • variables should not be quantitative nor continuous values;
  • the use of circles of different diameters allows you to reflect the relative dimensions of each strategic group;
  • several cards give various ideas about competitive positions.

You can apply arrows indicating the movement of groups to other positions.

Attempts by competing firms Log in to a new strategic group almost always lead to an increase in competition intensity.

The closer the group on the map to each other, the stronger the competition.

A card can be determined whether the differences in the potential profitability of individual categories of groups with a strong or weak position of each of them are connected.


Fig. 3. Map of competitive positions in the furniture sales market: vertically marked levels of quality ratio and price (k / c); horizontally - assortment set on the furniture sales market in Vladimir; The diameter of the circle is proportional to the share of sales; Figures indicates furniture seller organizations

5. What is the next most likely strategic step of competitors?

This analytical step includes the definition of competitors' strategies, identifying strong (weak) rivals, assess their competitive opportunities, forecast their subsequent steps. Well-set reconnaissance activities to collect information about the enemy makes it possible to predict its action.

The company cannot replay rivals if it won't track their actions. It is important to determine the structure of competitors: their position in the industry; goals; Basic approaches to competing competition.

we have a forecast of subsequent steps of competitors: understanding their strategic intentions; assessment of their market position; awareness how much they need to strengthen their financial position; Analysis of public statements; flexibility of a competitor; comprehending the image of the management of the leadership; Intelligence activities.

6. What factors are key success factors in competitive struggle?

Key success factors (CFU) are actions to implement the strategy, competitive opportunities, the results of activity that the company should ensure to be competitive and achieve financial success.

Key success factors - actions and competitive opportunities that need to pay special attention: loading of production capacity, trading network, advertising, production cost level, consumer location. In different industries, KFU are different, but they are rarely more than 3-4.

7. Is the industry attractive and what is its prospects for ensuring a high level of profitability (above average in other industries)?

If concludes that this industry is attractive, the aggressive strategy is usually taken into service to create a solid competitive position, expansion of sales and investment in the development of the production base and equipment updating.

If the industry is relatively low-rotor, then:

a) companies not related to this industry and considering accession to it may decide to adversely and begin searching for other features;

b) weak companies can merge with competitors or be absorbed by the latter;

c) Strong companies may limit further investment and focus on cost reduction strategies and (or) on innovative strategies (new products) to increase long-term competitiveness and ensuring profitability.

The formation of a strategy in general form can be defined as the process of developing the development objectives and functioning of the enterprise for a certain period of time, as well as methods of using funds to achieve the goal.

The choice of strategy depends on the set of conditions: the forms of competition and the degree of its rigidity, the pace and nature of inflation, the economic policy of the government, the comparative advantages of the national economy in the world market and other so-called external factors, as well as internal factors related to the possibilities of the enterprise itself, .. Its manufacturing and financial resources.

The process of forming an enterprise strategy includes:

  • § formation of a common, basic strategy;
  • § formation of a competitive strategy;
  • § Definition of functional strategies.

Development of a strategy for the development of the enterprise - the procedure for developing the desired state of organization: visions, mission, goals (card goals of the company and a countable map of key performance indicators) and specific measures for the use of strong (weak) parties to achieve opportunities (threat leveling).

The offensive strategy (offensive strategy) (Offensive Strategy) - implies an active, aggressive position of the company in the market and is aiming the goal of conquering and expanding the market share. Such a strategy is chosen by the company in case: 1) its market share is below the required minimum or decreased as a result of competitors' actions and does not provide a sufficient level of profit; 2) the company is going to release a new product to the market; 3) the company extension of production, which will pay off only with a significant increase in sales; 4) Competition firms lose their positions and creates a real opportunity to expand the market share at relatively low costs.

Practice shows that it is extremely difficult to conduct an offensive strategy in markets with a high degree of monopolization and in those commodity markets, whose products are poorly denominated by the differentiation process. The species of the offensive strategy may be the following strategies:

Strategy "Accumulation of Combat Equipment"

The company is preparing an attack on foreign markets, occupies an expectant position and works out "military technology" on the developed domestic market. It conducts a thorough study of the entrepreneurial environment of the foreign market, its conjuncture, the specifics of consumer requests, is preparing appropriate frames, etc.

Strategy "Development of the Bridgehead"

The company begins the preparatory penetration of its country of interest to its market. Acquires sales networks, warehouses, conducts a collection of primary information, creates joint ventures, etc. In some cases, the company approaches the market you are interested in by entering the markets of nearby countries or implements the methods of penetration in markets with similar working conditions, but with a lower degree of competition.

Strategy "Frontal Sturma", or attack

It is planned to break the boundaries of hard-to-reach markets with active competition and the use of rigid methods of market struggle. To implement this strategy, significant funds are required and compliance with the factory penetration market so that it does not adhere to a tough defensive strategy on the part of a competitor.

Strategy "Visits", or Environment

The company is making attacking actions at the same time on a large number of markets on the approach to the markets of major competitors. Such a strategy provides for a high level of internationalization of the company.

Strategy "Rake"

The company is taking active offensive and aggressive market actions in the markets of major competitors, selecting them almost all the main segments. This strategy can be called the strategy of world leadership, it is common for leading international companies in the world.

Defense Strategies

The meaning of this strategy is to maximize the entry of new competitors and prevent rivals attempt to take part of the market. The goal of tough defense is to keep the market share, strengthen the current market position and protect the competitive advantage that the company has. Specific defensive actions include:

Attempts to raise rates in a competitive struggle for rivals and potential competitors by increasing advertising costs, increasing consumer services or research and development costs.

The release of additional types of products with the characteristics, which has or can enjoy competitors.

Increasing the degree of individualization of consumer services and the introduction of other "excesses", strengthening the commitment of consumers and complicating or making more expensive to switch the consumer to products of competitors.

Expansion of product range, which closes the possible free niches to penetrate competitors.

Resting reasonable prices and preservation of attractive quality.

Creating new production facilities with ahead of the market needs for blocking potential expansion into the market of smaller competitors.

Investing sufficient to preserve competitiveness on costs and ensuring technological leadership.

  • * Patenting promising alternative technologies.
  • * Conclusion Exclusive agreements with the best suppliers and distributors.

Strategy of strengthening and defense is most suitable for companies that have already reached the dominant position and do not want to risk, bringing antitrust sanctions. It also goes well to situations when the company wants to extract the maximum benefit, from the point of view of profit and cash flows, from the situation that has achieved, because the prospects for the growth of the industry is small or because a further increase in market share will not bring such profits for which it would be worthwhile fight. However, such a strategy always implies an increase that does not lag behind the industry in general (to prevent the reduction of market share), and requires sufficient reinvestment of capital in business to protect the ability of the leader to competition.

Focusing Strategy (Concentration)

The third basic strategy is focusing on a specific group of buyers, the form of products or the geographical segment of the market. Like differentiation, focusing can take a variety of forms. However, if the objectives of the low cost or differentiation strategy are applied to the industry as a whole, the focus strategy means focusing on a narrower goal, which is reflected in the activities of all functional areas of the business. This strategy is based on the assumption that the firm with its help is able to pursue a narrow strategic goal with greater efficiency or productivity than competitors acting on a broader space. As a result of its implementation, the company reaches either differentiation due to the best satisfaction of the needs of the target market, or reduce costs when servicing this market, or the other. Even if the focusing strategy does not lead to low costs or differentiation from the point of view of the market as a whole, it allows you to achieve one of two or both of these positions in the space of a narrower target market. Firm that implements the focusing strategy also gets the potential to earn Higher profit than the industry average. Its focusing implies either the position of low costs within the framework of the strategic goal, or a high degree of differentiation, or both positions. As shown above, when considering leadership strategies in costs and differentiation, these positions provide protection against all competitive forces. In addition, focusing can serve as a means of choosing goals, the least affected by the subsectors, or those directions in which competitors are the most weak.

The liquidation strategy, in other words, bankruptcy is the last and extreme of the measures. If the management of the company sees that expenses significantly exceed the income, debts grow, and no measures taken at all affect the result or affect very weakly, it is rational to independently decide on the closure of the enterprise and wait for the official announcement of bankruptcy.

In this case, you can make an attempt to sell an enterprise at a residual value to reduce your losses to a minimum.

The shareholders of the enterprise, as a rule, are trying to avoid complete elimination by changing the guideline, changing the activities, restructuring, increasing sales or even enhanced advertising. If nothing helped, elimination remains.

Examples of abbreviation strategies in everyday life There are a great set: it is the abolition of the release of familiar products and products, bankruptcy of various enterprises, the closure of the store, which is near the house, etc.

 

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