Whatever may be said, competition is good, and the enterprise, located in healthy market conditions understands, why is it so. The competition gives the company an incentive to develop, and become a welcome option for his client. By definition, competition is "fighting subjects of market relations in the most favorable conditions in the business". It means, that being in constant rivalry, companies are forced to not only become better than others, but also accessible to the other for its segment of consumers (even if we are talking about the brand high marks). The desire to be the first and supports the existence of competition, thereby stimulating the growth of the quality of products and services, that can not but rejoice.
Lack of competition is very rare. This occurs, when a new product is being introduced into the market. But this situation is quite rare, because a lot of product is only modified and improved old products. This means, and the old rivalry, though not directly, As for this product.
The main weapon in the conditions of competition is, of course, competitive advantage. The product should have its own distinctive feature, unique property, that the consumer be persuaded of the value of his choice.
let us say, in a shoe store you offer unique packaging and delivery of the order, made on the internet. This will be a competitive advantage, as other stores do not provide such services. but, if for the service price is too high, many prefer to make their choice in favor of the ordinary shops, with which they can buy shoes at a bargain price.
Competition requires wisdom in building the strategic policy of the company in such a way, so that consumers feel comfortable, opting for your product. Development of a strategic plan will include not only pricing and service scheme, but also loyalty system, additional services and the distinctive features of the product.
Competitive environment: what is it and who needs it?
Ask any marketer, and he will certainly answer, that knowledge of the competitive environment should be among the key objectives of any enterprise. Unfortunately, the vast majority of post-Soviet space companies do not fully understand the importance of this fact, which leads to low productivity.
The tasks, presupposes a knowledge of the competitive environment, It includes understanding:
1) who is your customer, and that it is important for him, and
2) Who are your competitors, and what are their strengths and weaknesses.
The answers to these two questions should be under the constant eye of marketers and analysts, who do not miss a beat. After all, knowledge is power. And the understanding of each of the next step of your competitor only give you power. No wonder there is the concept of "competitive war". it involves, what the competition is like a war, where to obtain information, building strategy, capture, defense, and even sabotage are taking place in good company, which is not ready to lose their land. On the other hand, even in peacetime, the difference should be evaluated in relation to a competitor requiring high-quality and accurate information about him and his actions.
Examples of peaceful competition can be found in any type of business, where the businessman is working with its targeted audience, as one example - company, making outerwear and dresses summer. When the apparent similarity of the services provided, they not only do not interfere with each other, but also help each other until, until the break border services, and not impose services and supply a competitor. supposing, studio upper garment in the summer season will offer sewing easy suits at a discounted price.
Even one or two sewing costumes can undermine business studio summer dresses, t. to. his clients, visiting a competitor in the promotional period, will be able to appreciate the difference in pricing and quality execution of the order.
Of course, difficult to predict the actions of competitors, and the smaller business, the harder it is to predict the behavior of competitors, and the larger the enterprise, the easier it is to calculate and suggest options for their development. This is called market flexibility - the ability to respond quickly and readjust to any changes in the competitive environment. But you must always keep track of the competitors, and of their respective companies, constantly and carefully.
Any changes to the competitive companies no matter where it is located, pricing policy, advertising the organization or the appearance of new directions, or new products, or services (regardless of whether it is basic or additional services). The appearance of any innovation projects - should be special attention, even the smallest gesture in business, and must necessarily be accompanied by a review and analysis of the competitive environment and its derivatives. Special control is performed forecast market movements after the company.
Neither competitor analysis does not provide full information on its own: the "Ivanova & Co." has its own design department, "Sidorov and son" offers a lower price for one of the products - all this is a simple set of facts, which in itself is useless. All these information data should be combined in a comparative analysis of the information and formed into the strategy of the struggle for the consumer to consider further the situation: "Ivanov and Co" in response to our innovation can enter services for the delivery of goods, and "Sidorov and son" to increase the number of cheap goods, our company is threatened with the loss 15% Sales in the amount of 18 000 rubles / month.
How is the analysis of competitors?
For this purpose there is a classical method for the evaluation and analysis of the competitive environment, described in more 1979 by Michael Porter, professor at Harvard Business School, and which bears his name: This method Porter five forces. This method consists of five main components, to which attention must be paid with the yield analysis of competitive companies and organizations. By generating a current market relations, they can be described as follows:
- Assessment of the level of competition (competition);
- Assessment of the market power of the consumer;
- Assessment of the threat of new entrants;
- Analysis of O capabilities substitute or similar product on the market;
- Supplier Evaluation impact on market conditions.
Through analysis must also take into account the realities of today, so this list can and should add another assessment of the level of influence of the brand product and the real significance, its dependence on the social and technological processes of the development of society. To illustrate the latter point, give an example, as: cinemas. With the proliferation of the Internet and high-quality home video, the demand for them has fallen tens of times to the present day cinema did not restore their previous sales, even in the provision of better service and maintenance. And it does not restore.
For a more qualitative analysis is best left to the people, who are professionally engaged in the marketing and analysis of market relations. You can not have a staff specialist of this type, but it does not mean, which can be considered competitors through fingers, deceiving themselves and subordinates illusions. It can bring you a very unexpected, unpleasant and unexpected results.
To plan profitability or the company needs to analyze and evaluate the elementary part of the market, It occupied by the company at the moment, and possible development opportunities in the future the importance of its development, in consequence of elementary marketing activities and advertising campaigns. That part of the market, which takes the company at this time can be estimated as in the piece, and in financial terms. for example, Internet providers believe its market share in unit shipments index, given the number of active subscribers, and manufacturers of bakery products - in kilograms of products sold.
As Internet service providers, and baked goods manufacturers consider their market share in the economic factor, comparing with the general volume and focusing on volumes, recommended market, and the level of services, put on the market. In this case, the potential market share (sales / number of clients / volumes and Finance) calculated, finding and identifying the "victim", in which that part of the market will be conquered, which seeks a corporation or company. Usually, the victim becomes weaker competitors.