Improving the organization's marketing activities to improve its competitive position in the market. Strategy to strengthen market position; opportunities for developing current business are narrowing

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

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Strategy

  • Strategy– a long-term, qualitatively defined direction of development of an organization, relating to the scope, means and form of its activities, the system of relationships within the organization, as well as the position of the organization in the environment, leading the organization to its goals.

  • Starting to work on a strategy is working on the image of the desired future of the organization. Strategy is not a foresight or a prediction, but a program of action.

  • A strategy is a detailed, comprehensive, comprehensive plan designed to ensure that the organization's mission is achieved and its goals are achieved.



  • strategy to strengthen market position- the company does everything to gain the best position with a specific product in a given market. It requires a lot of marketing effort to implement it.

  • market development strategy- consists of searching for new markets for an already produced product;

  • product development strategy- involves solving the problem of growth through the production of a new product and its sale in the market it has already mastered.


  • The Russian fitness services market is developing in four price segments:

    • Premium
    • Middle class
    • Economy (democratic)
  • The share of each segment in the total share of fitness club attendance:

    • Lux -5%
    • Premium-12%
    • Middle class - 32%
    • Economy (democratic) – 51%



  • Zebra Fitness Consulting LLC is a limited liability company.

  • The Zebra Fitness Consulting network includes economy, business and premium clubs. Many clubs also have a SPA center, which is available to all club card holders of this club.

  • Clubs are located at:

  • M. Dynamo, st. Krasnoarmeyskaya, 11;

  • m. Rechnoy Vokzal, Leningradskoe sh., 45-47;

  • m. 1905, Shmitovsky Prospect, 16;

  • m. Molodezhnaya, st. Tolbukhina, 10, building 3;

  • m. Otradnoe, Altufevskoe highway, no. 44;

  • m. Sokol, st. Baltiyskaya, 15;

  • m. Avtozavodskaya, st. Leninskaya Sloboda, 19;

  • m. Alekseevskaya, st. Novoalekseevskaya, 25.

  • Owners of business and premium class cards have the opportunity to visit all clubs included in the Zebra Fitness Consulting network.









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

Reference business strategies - main types and characteristics

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

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

Reference business strategies are divided 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 take a closer look at them.

Concentrated growth strategy

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

Strategy for strengthening market position

The actions of the enterprise in this case are aimed at expanding and conquering new positions in the old sales market. This is achieved by increasing and diversifying advertising, holding various promotions for consumers, luring buyers away from competitors, and even quite harsh methods of competition are allowed.

Market development strategy

This strategy involves finding new sales opportunities for an existing and selling product. Markets may be new geographically (opening branches in other cities and countries), or a new industry may be developed in which the same product can be used as in an already developed one.

Product development strategy

It is used if you need to take sales to a new level, return the faded interest of buyers, or promote a new product. You can develop either an existing product (improving quality, changing packaging, expanding the range), or 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 through expansion or restructuring. If for some reason you cannot use the concentrated growth system, you can use 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 through enhanced control of suppliers, as well as through the opening of branches that will deal with deliveries. As a result, the enterprise gains independence from changes in prices for raw materials and from suppliers.

Forward Vertical Integration Strategy

By implementing this strategy, the enterprise develops an intermediary niche: either by purchasing their business, or by strengthening control over the activities of intermediaries. If your company is not satisfied with the quality of its sales and distribution structures, you should not hesitate to apply a strategy of forward vertical integration.

Horizontal integration strategy

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

Diversified growth strategy

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

If the demand for your product is falling, the antimonopoly system is blocking the development of your expansion within the existing framework, you want to invest excess funds in the development of new things, maybe enter international markets, and also, if possible, reduce taxes, apply a diversified growth strategy.

It is divided into three subtypes:

  • centered diversification strategy;
  • horizontal diversification strategy;
  • conglomerate diversification strategy.

Centered Diversification Strategy

Using this approach, you, leaving the production of the main product unchanged (keeping it in the center - hence the name), based on existing technologies, raw materials, sales network, your well-promoted brand, begin producing a new product or acquire the 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 showroom.

Horizontal diversification strategy

This strategy consists of releasing a product that complements 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 usual consumer.

For example, if you produce sports nutrition, you can start producing sportswear or sports equipment.
Consumers typically become attached to a particular brand, so a new product is likely to be received just as well as an existing one.

Conglomerate (unrelated) diversification strategy

The most complex, costly and unpredictable strategy, which consists in releasing a fundamentally new product and developing a completely new market.

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

Reduction strategy

Sometimes it makes more sense to change the structure of the enterprise or even close it completely yourself, without waiting for complete bankruptcy or an even greater deterioration of the situation (for example, due to a market downturn or a general economic crisis). But the standard downsizing strategy is not only used in such gloomy conditions; it also happens that an enterprise needs restructuring after a period of intensive development.
There are four subtypes of reduction strategy:

  • liquidation strategy;
  • harvesting strategy;
  • strategy for reducing management zones;
  • cost cutting strategy.

Elimination strategy

This strategy is implemented in those very cases when the situation is unfavorable, and implies a complete or partial closure of either the enterprise itself or part of its branches. It is also possible to stop producing an unprofitable product.

Harvest strategy

If some branch of production does not bring the desired income, has no prospects, and its sale will not bring tangible funds, you can try to achieve a good profit by implementing a “harvest” strategy. It consists of a gradual reduction in production (staff reduction, reduction in purchases, sale of equipment) and simultaneous active marketing of the existing product (often at reduced prices). By closing production gradually, you can get maximum total income.

Strategy for reducing management zones

If it is necessary to invest funds in any industry or production for long-term planning, you can liquidate a certain industry, division or part of the branches that currently generate less income - this is the so-called strategy for reducing business areas.

Cost cutting strategy

As the name suggests, this approach is aimed at maximizing cost reduction: reducing purchases, laying off staff, temporarily stopping production, etc.
Typically, this strategy is used temporarily if the company needs to survive 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.

Attention!

The VVS company provides exclusively analytical services and does not consult on theoretical issues of marketing fundamentals(calculation of capacity, pricing methods, etc.)

This article is for informational purposes only!

You can familiarize yourself with the full list of our services.

In contact with

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Modern economic conditions bring to the forefront in business the need to find opportunities to maintain and increase its profitability. By optimizing business processes in a company, you can increase profits or reduce costs. Each step to improve the main processes brings your company closer to a stable and economically secure position. We will tell you in this article how to become a market leader by making thoughtful and informed decisions.

To become a market leader, increase your target audience

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

The leading factors influencing brand awareness are considered to be two:

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

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

Both of these factors are significant in shaping the size of a brand, but one plays a more serious role.

The overwhelming majority of marketers are confident that the basis of a successful business is customer loyalty. Gain more loyal customers and your company can become as successful as Nike.

In other words, Apple and Nike did not reach the top of their business because they had an army of loyal customers. This is not enough to become a market leader. Although loyal customers are an integral part of the success of well-known companies, it is the reach of a wide audience that makes a brand a leader.

The market for influential brands is usually much larger than for small ones. In 2005, a large-scale study was conducted in the USA, which affected all brands of shampoo presented on store shelves. It turns out that Suave Naturals has 19% of the market, while its competitor Finesse has only 2%. The loyalty scores of these brands were 2 and 1.4, respectively.

In marketing, this is known as the double jeopardy law: small brands have fewer customers with low levels of 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. Now let’s figure out why brand awareness is growing. What exactly helps a company 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 must solve the difficult task of luring customers away from a larger competitor. 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 this indicator, but an increase in the number of fans of a particular brand allows it to increase sales and strengthen its position in the market.

Therefore, to change the market coverage, two methods can be used:

    Increase in the number of buyers.

    Reduced customer loss rate.

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 attracting as many new customers as possible should still be considered more effective.

Controlling customer churn is an incredibly difficult task, so relying on this method in an attempt to become a market leader is unlikely to be effective. In the 1980s, car dealers in the UK and France reported a churn rate of 47%. For the market leader, Ford, it was 31%; for Honda, which at that time was the smallest brand in the industry, it was 53%. Today, Ford boasts the most loyal customers, but the gap between it and the smallest brand is only 10%.

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

What leadership strategies exist?

A market leader is a company that dominates a particular segment both for customers and for its competitors. For other market participants, this company serves as a guide; they choose a strategy of either attack or avoidance in relation to the leading player. The market leader can choose different techniques, since his position allows him to dictate his terms to other participants. The disadvantage of being a market leader is the need to spend effort and money to maintain dominance and fight competitors who are trying to win back some of the customers.

Strategies:

1. Market expansion. Increasing 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.

A company's strategies to become a market leader include attracting new customers, offering innovative uses for the product, and increasing usage.

2. Protecting your market share. Along with sales growth, protecting the company's market share becomes more important, as players emerge whose actions could seriously undermine the leader's position. Your task is to minimize the likelihood of active actions on the part of competitors.

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

3. Increasing market share. indicate 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 not attractive; marketing expenses that exceed revenues from increasing market share. In most cases, growth in market size and sales volumes while maintaining a constant share can be considered optimal.

What needs to be perfected to become a market leader

1. Range.

Probably, the products you offer are represented by a large number of items and are not inferior in breadth of range and quality to the main competitors. However, this is not enough to become a market leader. To stand out from the crowd, you need to add a product that stands out from others like it in terms of longer life, 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 developing a 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 color has become a symbol of solidity and reliability, but it cannot be classified as a selling color. By adding red, you can get a good result. It is best to entrust the development of a corporate identity to a successful advertising agency.

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

The correct use of corporate identity by clients should be monitored by regional sales managers. Identified deficiencies must be corrected immediately. This is necessary to become a market leader in your segment.

3. Company catalogue.

For each group of products, it is recommended to publish advertising booklets describing their advantages and detailed technical information. POS materials are designed to create a consumer culture, educate customers and partners, and tell them about market development trends. Distribution can be carried out in various ways - together with products, at exhibitions, conferences and seminars. You should not overload advertising materials with technical details; their goal is to interest a potential buyer, so they should be understandable, emotional and colorful.

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

5. Education.

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

6. Participation in exhibitions.

Try not to miss a single exhibition, the subject of which allows you to present your products, be it events at the local, regional or federal level. This increases brand awareness and will allow you to become a market leader faster. After some time, a distributor will be able to represent your company’s interests at local exhibitions. The design of the exhibition 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 website must provide detailed information about each product, including technical specifications, drawings, photographs, and costs. In essence, it should replace the technical catalog of products of a company that strives to become a market leader.

The advantage of the site will be the possibility of its adapted viewing from mobile devices. Provide your Internet resource with convenient online services that will simplify customer interaction with your company. Social networks today are 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 a market leader in its segment.

6 recommendations on how to become a market leader when introducing 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, follow these recommendations:

1. Study the market thoroughly.

The introduction of a new product should 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 sells a similar product, what is the combined share of your future competitors?

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

    What qualities should a new product have to beat its competitors?

    Are there real barriers to entry into the market?

    What are its growth prospects?

2. Build competitive advantages.

In order for a product to quickly enter the market and successfully supplant competitors, it must have those qualities that the product currently on sale lacks, 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 identify the unique features of the product, the launch of which will give your company 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 product line, and so on.

3. Use modern production technology.

Technological lines that meet the latest requirements allow us to optimize the production cycle. This allows the company to become more flexible, quickly respond to fluctuations in consumer demand, and provide all retail outlets with the necessary assortment.

4. Set up sales channels.

A company just entering the market with its product faces a difficult task - to find retail outlets that would agree to sell it, because a similar product is already on the shelves. Often, creating your own retail network is the best solution. Sales points 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 offers for cooperation.

5. Product promotion.

To become a market leader, you must ensure positive public opinion regarding your products. The media must regularly publish materials containing the opinions of authoritative experts and 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 range, convenient packaging, and constant availability of goods on shelves.

6. Personnel selection.

Competent selection of personnel is one of the most important conditions, the fulfillment of which will help you become a market leader. There are different approaches to team building. There are managers who are convinced that employees who do not have experience in this industry master new technologies faster, and therefore give preference to them. They believe that the main thing is not the skills that the employee will acquire fairly 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 to achieve the final result. If you set a goal for your staff to become a market leader in one year, this will motivate employees to perform their duties conscientiously.

What is the best motivation for employees? Naturally, a decent salary. If your employees are paid a little more than similar positions at competing companies, their best employees will want to come to you. In addition to the basic amount, it is necessary to provide incentive payments based on the results of work. And most importantly, staff must feel respected by management. This does not require material costs, but is highly valued.

Some more important tips for those who strive to become a market leader:

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

    If you are faced with an attempt to copy your products, use salespeople 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 quite quickly.

    Do not strive to reduce product prices. A higher cost than competitors will allow you to invest in the latest technologies, consult with high-level specialists, and conduct master classes for staff. Over time, you will be able to purchase additional equipment and significantly expand production.

If you're really thinking about becoming a market leader, these steps will get you there.

3 more 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 shortcomings. Based on our own practice, we have formed our view on 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 help identify opportunities and determine profitability potential. The functions are closely related to each other, which is reflected in the most popular management concepts - “strategic marketing”, “innovation strategies”, “marketing innovations”. However, very little attention is often paid to these 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 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 statement, statement of cash flow and balance sheet - have the same practical use today as a map of Los Angeles in the 1930s.

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

Methods for accounting for indirect costs, that is, those that are not directly related to products or services, have long been outdated and hinder reliable analysis. Research that is traditionally carried out for the purpose of market research is also not truthful and does not provide an idea of ​​​​the real state of affairs, because it is based on questions that the researcher himself formulates, while a non-standard approach is required.

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

Without business intelligence, you will inevitably end up with strategy reduced to mere planning, marketing simply an advertising expense, and innovation just minor changes to outdated technology. Look at your company from the outside and try to answer simple questions: “Can I become a market leader? Do I know well enough how to achieve this?

Even a basic business analysis allows you to increase sales volumes by 30 or even 50%, using techniques such as rational redistribution of resources, reducing unprofitable areas of activity and strengthening more promising ones.

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

What problems does a company need to solve 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 oneself on the world market. The bulk of Russian manufacturers are focused exclusively on domestic consumers and do not even include entering the market of other countries among their strategic goals.

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

Without the potential to enter the global market, you have no chance of conquering the domestic one. You can easily be beaten and become the market leader by a competitor with a bigger mindset.

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

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

Solving these problems will not only allow you to become a market leader within a region or country, but will also give impetus to the development of export potential and 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, effective technologies will be required to bring new opportunities to life.

In addition to analytical techniques that allow you to select the most promising markets, products and services, there are other technologies that are no less important for companies planning to become market leaders. One of them is marketing and sales planning. Often Russian companies put into this concept the meaning that is completely different from what is needed. 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 flow of money into the company's cash register, while others are doing something unclear.

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

When the implementation of a marketing and sales plan is approached consistently and accurately, the results exceed your wildest expectations. Often, a marketing tool that was not even considered possible before can cause sales to increase by 30% in 1-2 months, although it costs little or nothing to the company.

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

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

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

If there is growth, but it is directly dependent on the budget allocated for contextual advertising, then your company’s chances of becoming a market leader will burst like a 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, an organization needs to study a large amount of market information, which the enterprise often does not have. Therefore, it is worth turning to 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 departments. 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 in 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, to put it mildly, incorrect, how much will your losses 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 reliable? You can check this! And we will provide you with this opportunity.

The main competitive advantages of our company are:

1. Data accuracy. The preliminary selection of foreign trade supplies, the analysis of which is carried out in the report, clearly coincides with the topic of the customer’s request. Nothing superfluous and nothing missing. As a result, we receive accurate calculations of market indicators and market shares of participants.

The development of an enterprise’s business activity is determined by the following circumstances, namely: in which market it operates, i.e. whether it is a developed market or not, and with what goods/types of services the enterprise enters the market (products that are new to this market or not).

As a rule, the directions of the strategy for strengthening market positions 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 product-market growth strategies

Field A1 is characterized by a deep penetration strategy (“old” product - “old” market). This strategy is effective when the market is not yet saturated. A company can achieve competitive advantage by reducing production costs and sales prices of services.

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

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

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

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

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

An enterprise’s use of one or another type of agricultural production strategy is determined by its position in the market, which is characterized by its market share (in percentage). Depending on the market share, the following positions of the company and its agricultural production strategy are distinguished.

  • 1. The leader (market share - 40%) feels confident and is the first to take the initiative in the area of ​​prices for new products. In defense, the leader resorts to various actions:
    • - “defense of position” - 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 ahead of the opponent using special signals that neutralize the attack, for example, disseminating information about an upcoming price reduction;
    • - “counter-offensive” - after the offensive, the leader pauses and then hits the competitor’s weak point, for example, showing the reliability of his product and the unreliable elements of the competitor’s product;
    • - “mobile defense” - the leader expands its influence through diversification of production, identifying the deep needs of customers;
    • - “compressive defense” - the leader withdraws from weakened market segments while simultaneously strengthening the most promising ones.
  • 2. A contender for leadership (market share - 30%) feels confident only if he attacks first. Various attack options are possible:
    • - a “frontal attack” is carried out in many directions (new products and prices, advertising and sales), and requires significant resources;
    • - “encirclement” - an attempt to attack all or a significant share 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 using not entirely correct methods to demoralize the opponent.
  • 3. Follower, or follower (market share - 20%) - this role consists of following the leader at a considerable distance, saving effort and money.
  • 4. Newcomer (entrenched in a market niche) (market share - 10%) - newbies begin with this role. This is the search for a market “niche” of 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 utilize the market potential;
  • - entering already developed markets with new products;
  • - with already produced goods to new, not yet developed markets;
  • - diversification;
  • - acquisition of new enterprises;
  • - 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 goods into old markets and the entry with old goods into new markets. The most risky thing is entering a new market with a new product.

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

At the same time, this strategy is difficult to implement in mature markets that have already been developed. This is due to the fact that expanding sales volumes in mature markets requires taking away customers from competitors. Winning customers loyal to competitors may require significant financial costs.

A little more risky is entering new markets with an already produced 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 that identifies new consumer requirements and tastes.

The development of new products requires, in addition to significant financial investments, the acquisition of licenses, permits for production and various types of 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 when implementing a growth strategy, since here the risk of developing new products is combined with the risk of entering new markets.

Features of a 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. the ability to quickly restructure its production activities depending on the market situation. The main behavioral strategies of a small company are presented in the matrix (Table 5.3).

Field 1. Copy strategy (“False mushroom”). The essence is that a small company, using the results of research and development work of larger companies on original products, produces copies of these products, which are, as a rule, significantly inferior in price and quality to the original.

Table 5.3. Main types of small firm strategy

Field 2. Optimal size strategy (“The Wise Minnow”). A small company operates under the motto: “do not stick your head out” beyond its market niche. Although this strategy ensures the survival of a small company, 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 product of a larger company is the final product for this company. To avoid dependence on a larger company, a small company should strive to limit the share of turnover attributable to one large client, i.e. a small firm should strive to supply goods to several large firms in such a way that the share for each of them in the total sales of the company does not exceed 20%. This allows small firms, like “stinging bees,” to force larger firms to “spin” and, by setting low prices for the sale of products, force large firms to get rid of unproductive divisions.

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

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

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

Field 1 - strategy for maintaining the existing situation. This strategy runs the risk of losing a niche due to changing needs.

Field 2 - the use of this strategy is dictated by the fact that the company experiences an acute lack of funds to maintain its position within the niche. The average firm begins to look for a large company that could absorb it, maintaining it as a relatively independent, autonomous production unit. Using the financial resources of a large company allows the medium one to maintain its place in the niche. Using this strategy, the average firm can constantly change hands while maintaining its niche specialization.

Field 3 - when using this strategy, the company faces problems associated with both growth and the need for resources:

  • - the company is growing as quickly as the market niche;
  • - the company must have adequate resources to support its accelerated growth.

Field 4 - This strategy is effective only when the market niche is too narrow for the average firm. A company, having reached the boundaries of a market niche in terms of sales volume, will face competition from larger companies. For this “decisive battle” the company must accumulate appropriate resources.

Features of the strategy for strengthening market positions for large companies

Large firms, unlike small ones, have greater 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. Matrix of growth strategies of large firms

Degree of diversification

excessive

Rates of growth

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

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

Field 3 - “Sluggish hippos” - this strategy is typical for firms with a high degree of diversification and low growth rates of output, i.e. for companies that produce everything, even the “nail,” on their own. The range of products manufactured by such companies is extremely wide - from fairly simple ones (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 specialists of the consulting firm McKenzie (USA), is used.

The characteristics of the model are the attractiveness of the market and the advantages of the enterprise in competition. The attractiveness of the market is assessed by a number of indicators that reflect the prospects for market growth, 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 business unit (SBU) (Table 5.6).

Table 5.6. Matrix “Market attractiveness - competitive advantages”

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

Using models allows us to identify a possible range of strategies. The attractiveness of strategic business units is assessed using the following methodology.

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

  • 1. To assess the possible life cycle impact, two phases must be taken into account, namely the unexpired part of the current phase and the subsequent phase.
  • 2. In order to take into account the possible development of competition, it is necessary to give two estimates of profitability, independent of each other - short-term and long-term.
  • 3. The level of future instability must also be taken into account. Practice has developed several different methods for assessing the attractiveness of agricultural products. One of the most common is as follows:
    • - 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. The most popular methods can be used for forecasting, but the most widely used method is developing scenarios for future conditions;
    • - at the second stage, the degree of influence of the most important trends and random events on the corresponding agricultural production is analyzed, 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 ones (T);
    • - at the third stage, extrapolation of previous growth trends (G) and profitability (P) is carried out;
    • - at the fourth stage, an assessment is made of possible changes in existing demand trends based on 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 according to the following table (Table 5.7);

Table 5.7. Assessing changes in projected growth of a strategic business unit

Options

Intensity scale

1. Growth rate of manufactured products (services)

Downgrade Upgrade

2. Increase in the number of consumers

Demotion

3. Dynamics of geographical expansion of the market

Expansion Contraction

4. Degree of obsolescence of products (services)

Decrease Increase

5. Degree of product (service) renewal

Decrease Increase

6. Technology upgrade rate

Decrease Increase

7. Demand saturation level

Promotion

8. State regulation of costs

Tightening Loosening

9. Government regulation of growth

Tightening

10. Unfavorable factors for profitability growth

Increasing 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 profitability data is corrected based on an 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 management zones

Options

Intensity scale +5 -5

1. Fluctuations in profitability

none

2. Fluctuations in sales volume

none

3. Price fluctuations

nonevery large

4. Polling cycle

missing very large

5. Level of demand in relation to capacity

very tall

6. Characteristics of market structure

high distribution

7. Stability of market structure

8. Product composition update

9. Duration of life cycles

big small

10. New product development time

long short

11. R&D expenses

large small

12. Costs necessary to access (exit) the product market

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 prospects, growth (G), profitability (R) and possible level of instability ( THAT) according to the following formula

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

Where a, p,y, o - 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 intensity scale of changes ranges from -5 to +5. If the previous values ​​of the characteristic are retained in the future, the mark will stop at 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 collection of relatively independent business units (strategic business units) belonging to one owner. Portfolio analysis (PA) is a tool with which enterprise management identifies and evaluates its economic activities in order to invest funds in its most profitable or promising areas and reduce/terminate investments in ineffective projects. At the same time, the relative attractiveness of markets and the competitiveness of the enterprise in each of these markets is assessed. It is assumed that the company's portfolio should be balanced, i.e. the correct combination of products that need capital for further development must be ensured with economic units that have some excess capital.

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

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

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

Table 5.9. Basic methods of portfolio analysis

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

Let's 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 the growth in demand volume and an indicator characterizing the ratio of the market share owned by the company to the market share owned by its leading competitor.

This ratio determines the comparative competitive position of the company in the future.

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

BCG Matrix proposes the following set of decisions on the further activities of the company in the relevant SZH:

  • - “stars” to protect and strengthen;
  • - whenever possible, get rid of “dogs” if there are no compelling reasons to keep them;
  • - “cash cows” require strict control of capital investments and the transfer of excess cash proceeds under the control of the company’s top management;
  • - “wild cats” are subject to special study to determine whether, with certain investments, they cannot turn into “stars.”

Rice. 5.5.

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

The BCG matrix helps to perform two functions:

  • - make decisions about intended positions in the market;
  • - distribute strategic funds between SZHs in the future.

The BCG matrix is ​​applicable only if the growth of 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).

A firm's relative competitive position can be determined by its market share.

In addition, one should take into account risk factors, knowledge of past strategies, reactions to the company's owners from investors and consumers, and the time factor.

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 rate;
  • - the size of the market share controlled by the corporation, measured as a percentage, and the industry-wide sales volume.

In accordance with this method, the entire field of activity of an enterprise is presented as a set of “strategic economic units” (SBUs) that make up the economic “portfolio” of the enterprise. SHPs are areas of enterprise activity that are independent from each other and are characterized by a specific product (or group of products), a range of customers and special market objectives. Each agricultural enterprise has its own goals, market opportunities and risks. Each SCP 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 enterprise’s share in the agricultural agricultural products market volume;
  • - stage of life cycle of agricultural production (market deployment, growth, etc.);
  • - competitive position of the enterprise (strong, weak, average).

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

The need for a systematic review of the agricultural enterprise portfolio is due to changes occurring in the external and internal environment of the enterprise. The strategic position of agricultural enterprises 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 premises:

  • - the volume of corporation 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 market growth rate;
  • - a slowdown in market growth while maintaining strong market positions creates the opportunity to receive excess income;
  • - a reduction in market share in a stagnating 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.

The company's high share in a fast-growing industry (market), as well as the leading position it occupies in the market, generating significant income, but the company is forced to spend most of it on maintaining its distinctive advantage - its leading position. Hence, this agricultural enterprise is constantly experiencing a shortage of funds. The main strategy of the corporation is penetration into new markets and (or) the formation of new segments in existing markets, the development of new channels of the distribution system. When focusing on this agricultural enterprise, the company's expenses on advertising and product improvement remain at a high level.

2. SHP “Dairy Cow”. This agricultural enterprise provides high income and is characterized by low costs due to the stability of the market in which the company operates. Agricultural enterprises are characterized by low market growth rates and a large market share.

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

The company does not need to spend significant funds 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 them to penetrate into the already established structure. Profits are significantly greater than necessary to maintain the achieved market share. The financial surplus is used to support other agricultural enterprises of the company.

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

3. SHP “Wild Cat” (problem child). This agricultural enterprise generates little income, but can turn into the Zvezda agricultural enterprise with additional investments. This product category is characterized by high market growth rates and a small controlled market share.

A situation of “either-or” instability arises, i.e. either by increasing efforts, becoming agricultural enterprise “Zvezda”, or leaving the market. As a rule, the company’s agricultural enterprise does not have enough funds to increase its efforts, i.e. the market share occupied does not provide the required profit. Financial support is needed from the agricultural enterprise “Daynaya Korova”.

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 position on it.

4. SHP "Dog". This agricultural enterprise generates little income and requires low costs, has no prospects and must 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 strategy option is the same as “dogs in the manger” - either leaving the market or searching for a highly specialized segment to gain a leading position in it: the agricultural enterprise “Dog” is a burden for the company.

Based on an analysis of the life cycle curve of demand and market position, a matrix of the company’s agricultural production is compiled (Fig. 5.6).

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

  • - The agricultural enterprise “Zvezda” should be protected and strengthened;
  • - get rid of agricultural enterprise “Dog” if possible;
  • - Strict control over capital investments is required over the agricultural enterprise “Dairy Cow”;
  • - 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 path of development of agricultural production
  • ---Main directions of effective financial flows

Rice. 5.6. SHP matrix of the company

These sets of decisions are called normative strategies because they define basic patterns of action. In addition to the clarity of the presentation of the strategic objectives of the enterprise, this model has the advantage that it allows making decisions about positions in the market 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 SHP matrix, it is necessary to determine the position in the market, which is estimated by the market share coefficient (MSR) using the following formula

When the CDR value is > 1, the market share is assessed as high, with the CDR

The production of a product makes sense for the corporation if it is transferred from the Wild Cat agricultural enterprise to the Zvezda agricultural enterprise, and then to the Cash Cow agricultural enterprise.

The final stage is to check the financial balance of the portfolio: it is necessary that the amount of funds required to develop the wild cats and maintain the stars is provided by income from the cash cows and from the liquidation of the dogs.

Conducting a portfolio analysis (PA) involves overcoming a number of difficulties, among which it should be noted: correct definition of the boundaries and scale of the market; the different nature of markets for the same product; inconsistency in assessing 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 markets.

The main disadvantage of these models is their static nature. They reflect the situation only during 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”, does it need to be changed, what changes should be made to it, how to link them with changes in the external environment, etc.

The following indicators are used:

  • - 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 enterprise program (current and future);
  • - the number of agricultural enterprises that are vulnerable from the point of view of competition, etc.

A more complex method for analyzing strategic development options, which allows one to obtain more reliable results, is a model for assessing the impact of marketing strategy on profit (PIMS), developed by General Electric and modified by staff at the Harvard Business School and the Marketing Research Institute. The essence of the methodology comes down to calculating multiple regression of profit indicators on invested capital ( ROI) and on cash flow based on various factors. ROI is calculated as the ratio of the amount of income to the book value of assets.

The factors that explain changes in ROI and cash flow include the entire set of indicators characterizing market development, the production capabilities of the corporation and competitor, the development of macroeconomic processes, etc.

The results of PIMS calculations are a set of matrices used in PA, which allows one to evaluate possible development options from various points of view.

PIMS makes it possible to calculate the average level of industry and market development, conduct a strategy sensitivity analysis by varying the value of one or more factors, and solve the problem of choosing the best combination of controllable 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 brainstorming method and morphological analysis.

The next stage - the economic assessment of a potential innovation is carried out on the basis of multifactor scoring models. The factors are grouped into groups called “Commercial attractiveness” and “Resource capabilities of the company.”

The main points by which 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 modification of the product if its basic version is mastered by competitors, 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 factors that determine the resource capabilities of an enterprise include: the availability of financial resources, the sufficiency of its own sales network, available production capacities, the strength of the scientific and technical base, the correspondence of the raw material base to the planned innovations, the presence of gifted innovative managers.

The maximum score for the factors “Commercial attractiveness” and “Resource capabilities of the company” is 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 unified procedure for conducting strategic planning.

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

 

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