Definitions competitiveness-vi

Welcome to my definitions competitiveness-vi.
The most commonly used functional approach to assessing potential competitor and strategies for its use. This house exploration is: deftness of "product investments " 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 evaluating 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. The analysis of strategic groups is done using so-called "strategic card industry groups" in the following order:

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.

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.

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 basis 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.
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