Welcome to my Competitiveness definition. Key Success Factors (or competitive advantage) - a characteristic of a particular industry list of factors that bring it advantages over other sectors (eg, in the fight for investment through greater yield or rate of turnover of capital), and other companies in the sector over others. These factors are not constant, they vary depending on: characteristics of industries; market segments served, and time and stage of "life cycle" sectors and enterprises.
Key success factors are based on the scientific and technical level of production and product; level marketing; level management; the organizational and technical level of production processes; the financial-economic level of the company; level staff.
For each industry has its own specific requirements for the combination of these key success factors, but thriving enterprise in any industry, each of them can be a tool for winning the competition.
Key success factors forming the competitive object of research, product, production, business, industry, state and more.
In the strategic management of competitiveness often viewed in two ways:
1) competitiveness of goods (products) that the extent of its compliance requirements at particular target groups of consumers or chosen market on major characteristics: technical, economic, environmental and so on.
2) competitiveness - a level of capability in connection to other companies be a competitor in the accumulation and utilization of the production capacity of a focus, as well as its individual components: technology, resources management (especially - Strategic current planning), skills and knowledge of staff, etc., which is expression resulting in such indicators as product quality, profitability, productivity and more.
The competitiveness of products. Expression enterprise competitiveness is products which it manufactures. Most models used to analyze the "portfolio company" based on determining the competitiveness of products. Each stage of the life cycle has specific characteristics competitiveness. Thus, in the early stages - initiation and access to the market - they can speed design work and time to market. Then come to the fore indicators of profitability, productivity and more.
Each product or service is valuable insofar as they can meet the needs of the consumer because all indicators that characterize a particular product or service will use objective and subjective, quantitative and qualitative parameters and indicators that are more or less reflecting the level of needs. The higher the level, the more competitive product produced by the enterprise.
It is necessary to distinguish between parameters and indicators of competitiveness.
Options competitiveness - is often quantitative characteristics of the properties, taking into account the features of the industry for its competitiveness. There are some parameters of competitiveness: technical, economic, regulatory (various types).
Key success factors are based on the scientific and technical level of production and product; level marketing; level management; the organizational and technical level of production processes; the financial-economic level of the company; level staff.
For each industry has its own specific requirements for the combination of these key success factors, but thriving enterprise in any industry, each of them can be a tool for winning the competition.
Key success factors forming the competitive object of research, product, production, business, industry, state and more.
In the strategic management of competitiveness often viewed in two ways:
1) competitiveness of goods (products) that the extent of its compliance requirements at particular target groups of consumers or chosen market on major characteristics: technical, economic, environmental and so on.
2) competitiveness - a level of capability in connection to other companies be a competitor in the accumulation and utilization of the production capacity of a focus, as well as its individual components: technology, resources management (especially - Strategic current planning), skills and knowledge of staff, etc., which is expression resulting in such indicators as product quality, profitability, productivity and more.
The competitiveness of products. Expression enterprise competitiveness is products which it manufactures. Most models used to analyze the "portfolio company" based on determining the competitiveness of products. Each stage of the life cycle has specific characteristics competitiveness. Thus, in the early stages - initiation and access to the market - they can speed design work and time to market. Then come to the fore indicators of profitability, productivity and more.
Each product or service is valuable insofar as they can meet the needs of the consumer because all indicators that characterize a particular product or service will use objective and subjective, quantitative and qualitative parameters and indicators that are more or less reflecting the level of needs. The higher the level, the more competitive product produced by the enterprise.
It is necessary to distinguish between parameters and indicators of competitiveness.
Options competitiveness - is often quantitative characteristics of the properties, taking into account the features of the industry for its competitiveness. There are some parameters of competitiveness: technical, economic, regulatory (various types).
Technical parameters are characteristic of technical and physical properties, which determine the characteristics of the industry and how to use and functions performed by the product during its use.
Economic parameters determine the level of production costs and consumer prices because of the cost of purchase, maintenance, use, disposal of goods.
Statutory parameters determining product compliance to established norms, standards and requirements resulting from the legislation and other regulations.
Competitive - a set of criteria for systemic quantitative evaluation of the product, based on the parameters of competitiveness.
The list of indicators of competitiveness depends on the object of research, and the selected methodology for determining competitiveness.
To compare automatic company "Hewlett-Packard" uses, such as the following indicators:
performance - possibilities (intervals) measuring vibrations MHz;
unit cost, USD .;
functionality - the number of operations that can be performed, m / m;
reliability - the frequency of refuse;
timely repairing/supplies.
Comparisons can be made in the tabular form, the indicators were chosen depending on the type of product (Table. 2.9 are the most common). To decide whether to compete or not in a particular product, it is necessary to consider the approach proposed by K. Omai in "strategic thinking" (rays.2.5).
The basic idea of this model is targeting enterprises in the creation and development of key success factors, missing the competition. The company, based on the views of the author, can and should create and support the demand for products with unique properties. These properties can be formed both at the production stage and the stage of distribution and service. This all enhances the quality of consumption. Arguments to avoid competition regarding products which are marked by using the weaknesses of competitors and the whims of consumers are the unreliable and short-term existence of the competitive advantages of this type, since it is clear that competitors are constantly working hard to avoid weaknesses, and consumers may suddenly change their commitment.
Particular attention should be paid to competitive parity, which is a situation where two or more competitors have achieved in the development of the same competitive advantage by using the same "strengths".
The competitiveness of the company. Competitive products - the result of the functioning of a competitive organization able to create, produce and provide the necessary level of consumption in customers. Main here - its potential, its ability to effectively use and develop.
The competitiveness of not a permanent feature, it defines the ability to lead a successful competition, confront a period of major competitors. With the changes in the external and internal environments change as a comparative competitive advantage relative to other industry. From this, it can be argued that the competitiveness of the organization - a relative term, since it can be determined only by comparing the individual characteristics of the company with the characteristics of other similar companies. The competitiveness of enterprises depends on the object of comparison, as well as the factors used to estimate competitiveness. We cannot speak of absolute competitiveness: it can be "number one" in the industry in the national economy and be uncompetitive in international markets.
In a market economy to gather all the necessary and complete information about a competitor cannot, however, advisable to carefully analyze the current status of a competitor, its competitive position in the industry, potential competitors and strategy use and purposes competitor in the short and long term.
The most commonly used functional approach to assessing potential competitor and strategies for its use. This house analysis is the strategy of "product portfolio" with its various technical and economic characteristics; marketing, production, distribution systems, research and development (R & D subsystem), finance, human resources management system. That competitor analysis carried out by methods such as analysis of the internal environment.
Porter suggested evaluate competitors on the following parameters:
financial targets; attitude to risk; values of the organization; control and incentives; the organizational structure; accounting system; types of senior leaders and their management style; understanding of the ways of the company; Board of Directors; limitation of the obligation of the state and firms that reduce freedom of choice-making and behavior.
A. Rowe et al propose the following factors to analyze competitors [48]: strategic orientation / policy; product quality; sales organization and implementation; marketing opportunities; production capacity; financial situation; the level of research and development; availability of energy and raw materials; geographic localization system of production and distribution; costs; quality training of managers and staff; brand / company image.
The figures show that various authors emphasize sources of competitive advantages (M. Porter) or more precise figures that are calculated to compare competitors (A.Rou).
Competitor analysis should answer about the activities and how to compete, but this is due to some difficulty because the industry can be characterized by the activity of tens or hundreds of enterprises.
The practice of strategic analysis demonstrated the need for group companies to improve the quality of analytical data obtained.
The strategic group competition. Enterprises - very different: even in one and the same industry (eg production cameras) are companies that manufacture products cost 50 500 USD. Various modifications, quality, consumer groups, etc. - Are important characteristics that allow you to specify the range of competitors.
The strategic group competition - a certain number of businesses that occupy similar positions in the market and compete on the basis of one and the same competitive advantages and the same methods.
Enterprises are in one and the same strategic group if they meet any of these requirements.
structure close range of products;
using a distribution system;
the same type and degree of vertical integration;
offering consumers similar services and technical assistance in the operation;
Some focus on customers;
meet the needs of customers that require the same features in the products;
the use of such techniques in the media advertising;
identical technological approaches to the production and maintenance of products or services;
work in a range of settings "price-quality";
identical strategic goals and mechanisms to achieve them;
the same behavior in the market.
Different industries may have a different number of strategic groups. It is important to clearly define the parameters necessary to characterize the field of strategic groups that reflect the specific characteristics of a particular business sector as a whole and one strategic difference from other groups within the industry. These characteristics can be factors of competitiveness, according to which it is necessary to analyze and form strategic industry group.
Elect most essential characteristics of the products or the industry (according to analyze). Singles out two of them.
Compile a matrix card with two characteristics. It is important that they are correlated with each other.
Expect selected characteristics by product or business, then the company or products placed on the 'road'.
Objects that find themselves close together, united in a strategic group.
Around each strategic group draw a circle. It is advisable that total sales of strategic enterprises in the industry were proportional to the radius of the circle (Fig. 2.6).
Note: The size range of approximately reflect the market share which is served by a separate strategic group.
Forming a "strategic group" the competing companies can apply the approach "of needs." Then companies can form such a group:
all designed to meet the complex needs and demands put by the consumer to the product or service;
specialized to meet the specific needs of a particular segment ( "niche orientation);
new competitors that are planning to enter the market with its own similar products;
potential competitors, now serving other markets similar products, but so far no plans to develop the market, which investigated;
Particular attention should be paid to competitive parity, which is a situation where two or more competitors have achieved in the development of the same competitive advantage by using the same "strengths".
The competitiveness of the company. Competitive products - the result of the functioning of a competitive organization able to create, produce and provide the necessary level of consumption in customers. Main here - its potential, its ability to effectively use and develop.
The competitiveness of not a permanent feature, it defines the ability to lead a successful competition, confront a period of major competitors. With the changes in the external and internal environments change as a comparative competitive advantage relative to other industry. From this, it can be argued that the competitiveness of the organization - a relative term, since it can be determined only by comparing the individual characteristics of the company with the characteristics of other similar companies. The competitiveness of enterprises depends on the object of comparison, as well as the factors used to estimate competitiveness. We cannot speak of absolute competitiveness: it can be "number one" in the industry in the national economy and be uncompetitive in international markets.
In a market economy to gather all the necessary and complete information about a competitor cannot, however, advisable to carefully analyze the current status of a competitor, its competitive position in the industry, potential competitors and strategy use and purposes competitor in the short and long term.
The most commonly used functional approach to assessing potential competitor and strategies for its use. This house analysis is the strategy of "product portfolio" with its various technical and economic characteristics; marketing, production, distribution systems, research and development (R & D subsystem), finance, human resources management system. That competitor analysis carried out by methods such as analysis of the internal environment.
Porter suggested evaluate competitors on the following parameters:
financial targets; attitude to risk; values of the organization; control and incentives; the organizational structure; accounting system; types of senior leaders and their management style; understanding of the ways of the company; Board of Directors; limitation of the obligation of the state and firms that reduce freedom of choice-making and behavior.
A. Rowe et al propose the following factors to analyze competitors [48]: strategic orientation / policy; product quality; sales organization and implementation; marketing opportunities; production capacity; financial situation; the level of research and development; availability of energy and raw materials; geographic localization system of production and distribution; costs; quality training of managers and staff; brand / company image.
The figures show that various authors emphasize sources of competitive advantages (M. Porter) or more precise figures that are calculated to compare competitors (A.Rou).
Competitor analysis should answer about the activities and how to compete, but this is due to some difficulty because the industry can be characterized by the activity of tens or hundreds of enterprises.
The practice of strategic analysis demonstrated the need for group companies to improve the quality of analytical data obtained.
The strategic group competition. Enterprises - very different: even in one and the same industry (eg production cameras) are companies that manufacture products cost 50 500 USD. Various modifications, quality, consumer groups, etc. - Are important characteristics that allow you to specify the range of competitors.
The strategic group competition - a certain number of businesses that occupy similar positions in the market and compete on the basis of one and the same competitive advantages and the same methods.
Enterprises are in one and the same strategic group if they meet any of these requirements.
structure close range of products;
using a distribution system;
the same type and degree of vertical integration;
offering consumers similar services and technical assistance in the operation;
Some focus on customers;
meet the needs of customers that require the same features in the products;
the use of such techniques in the media advertising;
identical technological approaches to the production and maintenance of products or services;
work in a range of settings "price-quality";
identical strategic goals and mechanisms to achieve them;
the same behavior in the market.
Different industries may have a different number of strategic groups. It is important to clearly define the parameters necessary to characterize the field of strategic groups that reflect the specific characteristics of a particular business sector as a whole and one strategic difference from other groups within the industry. These characteristics can be factors of competitiveness, according to which it is necessary to analyze and form strategic industry group.
Elect most essential characteristics of the products or the industry (according to analyze). Singles out two of them.
Compile a matrix card with two characteristics. It is important that they are correlated with each other.
Expect selected characteristics by product or business, then the company or products placed on the 'road'.
Objects that find themselves close together, united in a strategic group.
Around each strategic group draw a circle. It is advisable that total sales of strategic enterprises in the industry were proportional to the radius of the circle (Fig. 2.6).
Note: The size range of approximately reflect the market share which is served by a separate strategic group.
Forming a "strategic group" the competing companies can apply the approach "of needs." Then companies can form such a group:
all designed to meet the complex needs and demands put by the consumer to the product or service;
specialized to meet the specific needs of a particular segment ( "niche orientation);
new competitors that are planning to enter the market with its own similar products;
potential competitors, now serving other markets similar products, but so far no plans to develop the market, which investigated;
In addition, the industry can be classified by strategies that are developed and carried out, leading for strategies to reduce the cost (price) strategy of product differentiation; strategies based on the introduction of «know-how», etc. (see. Drozd. 3.8).
Each company independently decides on the number of parameters that need to compare individual company. Therefore, maps of strategic groups will be as many pairs selected characteristics. Availability of maps with different paired assessments can help identify the level and type of competition as the industry as a whole (amount, the structure of strategic groups and their positions) and in the same strategic group.
The main competitors are companies that are part of a strategic group, but if the group is strategic map close position, there is competition between enterprises in different strategic groups. Strengthening or weakening of individual groups and businesses within the group associated with the acquisition or loss of certain competitive advantage. Changes in characteristics businesses can create conditions for their transition from one strategic group to another. Switching to another group needs to review the strategic balance, goals, and strategies of the company. Of particular importance is the evaluation of the place and role of enterprise in his new strategic group, and analysis of new competitors.
Considerable importance is the evaluation of the ability of a competitor to create competitive advantage. Competitive advantages can manifest both in the external and the internal environment.
The key to any company or organization - is the creation and support of various "skills" that make them competitive and are the foundation of their strategy.
Thus, the successful pursuit of the organizational structure and the external environment does not occur on their own, it is the result of focus now acquiring competitive advantages, including organizational, which is perfect OSU.
Fig. 2.7 shows a simplified diagram of competitor analysis, which is widely used in Western literature. Answers to these questions can be obtained to conduct the in-depth analysis of competitors, caught in a "strategic group".
Each company independently decides on the number of parameters that need to compare individual company. Therefore, maps of strategic groups will be as many pairs selected characteristics. Availability of maps with different paired assessments can help identify the level and type of competition as the industry as a whole (amount, the structure of strategic groups and their positions) and in the same strategic group.
The main competitors are companies that are part of a strategic group, but if the group is strategic map close position, there is competition between enterprises in different strategic groups. Strengthening or weakening of individual groups and businesses within the group associated with the acquisition or loss of certain competitive advantage. Changes in characteristics businesses can create conditions for their transition from one strategic group to another. Switching to another group needs to review the strategic balance, goals, and strategies of the company. Of particular importance is the evaluation of the place and role of enterprise in his new strategic group, and analysis of new competitors.
Considerable importance is the evaluation of the ability of a competitor to create competitive advantage. Competitive advantages can manifest both in the external and the internal environment.
The key to any company or organization - is the creation and support of various "skills" that make them competitive and are the foundation of their strategy.
Thus, the successful pursuit of the organizational structure and the external environment does not occur on their own, it is the result of focus now acquiring competitive advantages, including organizational, which is perfect OSU.
Fig. 2.7 shows a simplified diagram of competitor analysis, which is widely used in Western literature. Answers to these questions can be obtained to conduct the in-depth analysis of competitors, caught in a "strategic group".
No comments:
Post a Comment