Development of a competitive strategy. Development of a competitive strategy for the activities of a trading enterprise using the example of Balterm LLC

Over the past decade, the number of small businesses in Russia has increased significantly. The advantages of such enterprises are flexibility, mobility, and the ability to quickly adapt to changes in market economic conditions.

The stable development of this type of business creates competition and to obtain maximum income it is necessary to choose the right competitive strategies for small businesses. This will allow the company to take a strong position in constantly changing market conditions, and will also provide the opportunity to compete with similar enterprises.

Competitive strategies - development, selection and types

The importance of small business for the state economy cannot be overestimated. A market economy without such enterprises would simply cease to exist. The formation and development of small businesses is a priority task facing the powers that be. Representatives of small businesses are an important sector of the market economy, determining the pace of development of the country and its gross income.

The term “competitive marketing strategies” implies a generalized model of action and a set of necessary rules that a manager must adhere to in the process of planning the further maintenance of the enterprise’s competitive position in a market economy. The main competitive strategies are formed on the basis of deep and clear characteristics, including quantitative and qualitative characteristics of resource sources, the sales market, competition assessment, as well as economic prerequisites and possible restrictions.

Choosing a competitive strategy is a key management task. Because of the very short period activities, representatives of small businesses in Russia have not yet had time to acquire the necessary experience in choosing a competitive strategy, but they are already taking bold and confident steps in this direction and are beginning to implement them in practice.

Development of a competitive strategy

Unfortunately, the mechanism for developing and applying in practice competitive strategies of small enterprises in modern economic literature has been studied and described very poorly. But still, three main steps can be distinguished for making the right choice, namely:

the purpose of the enterprise;
analysis of external and internal factors;
choice of competitive strategy.

If everything is clear with the first two steps, then with the third I encounter certain difficulties. Due to the intense competition in the market, the formation of a competitive strategy for an enterprise is a very important task. The development of a competitive strategy is to determine the main approaches to developing basic principles and creating an optimal strategy for a small business that operates in constantly changing market conditions. Based on the goal, the following tasks arise:

identify potential alternatives possible for a given small business;
identify and establish the main guidelines in the activities of the enterprise;
conduct a complete and in-depth analysis of internal and external factors;
select possible options for competitive strategies for a small business.

It must be remembered that competitive strategies are developed as advantages over competitors for a long period of 3-5 years. Therefore, when choosing, you need to take not momentary desires, but those positions that will produce results throughout the entire period. To do this, it is necessary to conduct a competitive analysis, consisting of: determining the main competitive forces of the industry and identifying the main options for strategy behavior in a competitive environment.

Choosing a competitive strategy

Basic competitive strategies and their right choice in many ways they determine the future course of behavior of a small business in the market, and also provide an advantage over competitors. Therefore, when starting to choose them, be serious. Incorrectly formed stereotypes among many representatives of market relations led to the exclusion of a systematic approach to solving this issue. When choosing a competitive strategy, it is necessary to get rid of all the stereotypes and cliches that exist on this topic.

Of course, the issue of competition and the choice of a market that should bring profit are the key concepts of the subject’s marketing orientation entrepreneurial activity, but as practice shows, excessive concentration on these concepts has a detrimental effect on important parameters of competitive strategy and can lead to negative consequences.

When choosing a strategy, modern marketers also pay insufficient attention to the time frame of its action and personal orientation. Competitive marketing strategies should not so much counteract rival competitors as win specific customers who use their products and services.

Classification of competitive strategies

Let's take a closer look at the types of competitive strategies. The classification of competitive strategies distinguishes, first of all, Porter's competitive strategies, Kotlet's competitive strategies, modern competitive strategies and, a little apart, international competitive strategies.

One of the founders of competitive analysis is Harvard Business School professor M. Porter, whose models of competitive forces are most often used in modern practice among business strategy tools. These models have proven their effectiveness in practice more than once. Their strength is clearly expressed in the “outside-in” aspect.

Porter's competitive strategies are based on the existence of five competitive forces that determine the attractiveness of an industry, as well as the position of a given small business in this area and its competitive capabilities, namely:

Entry of competitors. How easily and easily a newcomer can get into this area of business and begin to compete, as well as what obstacles he may encounter;
Threat of substitutes. How quickly and easily can existing goods, works and services be replaced with analogues, as well as ways to reduce their cost;
Bargaining power of buyers. How much does the consumer influence the pricing policy and are there ways to increase the volume of orders;
Bargaining power of suppliers. What are the ways in which the seller influences the price of the product and how many suppliers are available today;
Rivalry among the existing players. Is there strong competition between the players today, and are there dominant ones among them or are all players equal to each other?

Although M. Porter admits that companies can achieve significant success in achieving the goal of competition using a large number of different strategies, he still identifies three internal strategies that do not contradict each other. The main types of competitive strategies are as follows:

cost minimization;
differentiation;
concentration.

Let's look at Porter's typical competitive strategies in more detail.

Cost minimization strategy

The cost minimization strategy involves reducing the costs of production and sales of products. Therefore, managers need to pay great attention this issue and find ways, without resorting to deteriorating the quality of products and the raw materials from which they are produced, to reduce this indicator. Such actions will help reduce the price of products and win sympathy more consumers.

Of course, this strategy is not suitable for everyone, but as soon as a company is able to minimize costs, it manages to maintain a high level of profitability, as well as occupy a leading position for a long time. Cost leadership does not provide any guarantee against defeat, but it can be an effective response to the actions of competitors.

Competitive differentiation strategy

A competitive differentiation strategy involves differentiating a product from a previously manufactured product in the direction of greater utility for the consumer. At the same time, minimizing production costs is not a priority. Businesses that choose this strategy should strive to create a more unique product in their market industry.

Differentiation most often leads to increased production costs. Therefore, to attract consumers, they need to use more expensive and high-quality raw materials, the type of products must be better than those of competitors, and also invest more in the development of new technologies. The risk of this strategy is that not every consumer agrees to overpay for quality and uniqueness.

Concentration strategy

A concentration strategy involves deciding to concentrate on a specific market segment or geographical region. In this case, the enterprise can use the previous models both separately and together at the same time.

The main difference from previous competitive strategies is that the enterprise will compete in a narrow market segment. And instead of luring buyers with price or uniqueness, it tries to become a leader and suppress or even displace all competitors. At the same time, small businesses face the same problems as those who use the models described above.

M. Porter recommends choosing one of the models described above. If you try to apply all the strategies at the same time, then instead of achieving positive results, the company will have a large number of problems. In addition, such actions will tear the enterprise apart from the inside and lead to its bankruptcy.

To achieve success in modern market conditions, you need to focus on your competitors. It is necessary to determine their strengths and weaknesses to develop the right marketing attack. The company may not be the strongest in each of the areas of its chosen activity, but it can focus on achieving leading positions in several types, and be in the background in the rest.

F. Kotler

Kotler classifies competitive strategies depending on its role in the target market. Namely:

Market leader strategies. The aim is to increase the level of output; protect the market segment occupied, as well as try to increase its market share;
Strategies of a leadership candidate. Consists of increasing their market share, as well as displacing the leader’s position;
Follower Strategies. They include the possibility of duplicating, modifying and adapting the leader’s products with their further production and introduction to the market;
Strategies of a niche inhabitant. They consist in the fact that such enterprises choose a narrow specialization that is of no interest to big companies, and occupy a monopoly position there due to the lack of competitors.

Modern competitive strategies

Modern competitive strategies include the interaction of three main factors: the company's position relative to competitors; enterprise goals; market situation. Today, the price factor very often plays a decisive role in the consumer’s choice of products. Therefore, when choosing modern competitive strategies, it is very important to take this factor into account. Let's look at competitive pricing strategies that are used in marketing.

A competitive pricing strategy means that the price of a product is set according to the value it provides to the customer. There are three options:

the price of the product is higher than its economic value;
the price of the product is lower than its economic value;
the price of a product at the level of its economic value.

Depending on this you can apply:

Pricing strategy “Cream skimming or premium pricing”. This means that the company sets a higher price and, due to the profitability of sales in a narrow market segment, receives high profits;
Pricing strategy “Market Penetration”. The essence of the strategy is that in order to attract buyers and conquer the market, small businesses reduce the price below its economic value;
“Signalized Prices” Pricing Strategy This is based on the buyer's trust in the seller's pricing mechanism, which was created by competitors. In this case, the products become cheaper brands best quality than competitors. The essence of the strategy is to compare prices and lure consumers.

All types of pricing strategies are closely related, and their use depends on the market situation. Price and pricing are key economic categories that significantly influence the choice of the main competitive strategy of an enterprise.

International competitive strategies

When developing new market segments, as well as in connection with the expansion of the enterprise, the company is forced to develop international markets. This, in turn, makes it possible not only to increase production volume, but also to reduce costs, as well as gain access to sources of resources in other countries. International competitive strategies are an important point in the formation and development of the main strategy of an enterprise.

The global market has very serious requirements and high standards for its participants. Differences in cultures, currency exchange during transactions, difficulties in taxation, and the perception of imported products by foreign residents significantly complicate the choice of the necessary concept. Therefore, most strategies are based on the introduction of innovation, improvement of existing products, and the search for sources of financing.

After analyzing the activities of the largest players in the global market, the following competitive strategies can be identified:

application of a global low-cost production strategy;
enhanced support for national production, supply of their products through existing channels, as well as the development of new ones;
adherence to the principles of global differentiation, which consists of supplying manufactured products to different countries and creating a brand name in them;
choosing a strategy according to the country in which the market will be developed;
transfer of production rights to foreign partners;
creation of subsidiaries or joint ventures on the territory of foreign states;
franchising, outsourcing and offshore production.

Summing up

To summarize, it should be noted that the concept of “universal competitive strategy of an enterprise” does not exist. Only by matching the conditions of a particular industry with the scientific potential and available capital can success be achieved. The modern world offers a large number various options strategic development, the goal of which is to successfully overcome the troubles and problems facing the enterprise in the business sphere, to minimize costs due to increased competition, as well as to achieve operational flexibility and communication skills.

Eldar Aminov Head of the strategic marketing group of OJSC Production Association Krasnoyarsk Combine Harvester Plant

Competitive strategy is a tool in the hands of enterprise managers that allows them to achieve their intended goal. In order for competition to be carried out thoughtfully, it is necessary to develop a competitive strategy, draw up a plan for its implementation and analyze the results of implementing the plan. The developed plan for implementing a competitive strategy helps all employees of the organization clearly understand what function they must perform when working with each market segment and how to behave in the event of certain actions of competitors. In other words, this creates conditions for the coordinated work of managers of various divisions to achieve common corporate goals. And in the market, the company’s actions become interconnected and targeted.

The general idea developing a competitive strategy is a program of action that allows you to get a positive economic effect due to the fact that the company finds itself in a stronger competitive position.

IN general view The development and implementation of a competitive strategy can be represented in the form of a diagram shown in Figure 1.

Figure 1. Stages of development and implementation of a competitive strategy

The above diagram shows that the function of competitive strategic planning in an enterprise is carried out using basic principles, that is, the rules for the formation and implementation of strategy in the market:

continuity and accumulation;
sequence of steps (stages) to be performed;
cyclicality.

The continuity of a competitive strategy lies in the fact that, even before developing a strategy, an enterprise must analyze previous experience, find out what actions were useful in competition and check their relevance at the current moment. In addition, studying past experience will allow the company to avoid old mistakes when developing a new strategy.

The sequence is caused by the dependence of the subsequent stage on the results obtained at the previous one. This will allow you to avoid mismatch between the competitive strategy and market conditions, mistakes that have already occurred in the past, and evaluate the results obtained during the implementation of the strategy.

The cyclical nature of competitive strategic planning is manifested in the fact that the results of the implementation of a competitive strategy must be analyzed and taken into account in subsequent developments of strategies, since the competitive strategy is constantly adapted to the competitive environment.

Competitive strategy is an important tool in the hands of managers, since it is aimed at solving a number of tasks and problems that the company faces.

Firstly, available analytical material, obtained and structured during the formation of the strategy, allows both management and performers to clearly see the situation on the market, the company’s position in it, the reality of goals and ways to achieve them.

Secondly, approved by the company’s management, the competitive strategy acquires the force of an organizational and administrative document, that is, it allows one to concentrate forces in the required direction.

And finally, thirdly, by analyzing its activities in past periods, a company can constantly improve and expand its scope of activities, adequately respond to market changes, strengthen its market position and conquer new markets.

Currently, practitioners often have to deal with a situation where there is a gap between the theory of competitive strategies and the practice of its application in an enterprise. The algorithm proposed below for developing and implementing a competitive strategy for an enterprise can help minimize this gap (Fig. 2).

Figure 2. Algorithm for developing and implementing a competitive strategy

According to the proposed algorithm, the development and subsequent implementation of a competitive strategy is carried out through the sequential execution of eight main stages:

Mission and corporate development strategy of the enterprise.
Formulation of tasks in competition in the market.
Collection and analysis of information about the external and internal environments of the enterprise.
Choosing a competitive strategy for an enterprise in the market.
Analysis of the chosen strategy.
Implementation of competitive strategy through a developed plan.
Analysis of the results of strategy implementation.
Adjusting an existing strategy or developing a new one effective strategy, which will be able to implement the tasks set by the overall corporate strategy of the enterprise.

It is important to note that since in the hierarchy of strategic planning the competitive strategy is lower than the general corporate enterprise development strategy, it makes sense to begin developing a competitive strategy after completing work on the general corporate enterprise development strategy.

Due to the fact that the development and implementation of a competitive strategy affects various services and functional units, it is logical to divide the algorithm into phases. All eight stages are divided into three phases:

Preparation phase (stages 1 and 2).
Development phase (stages 3, 4, 5).
Implementation phase (stages 6, 7, 8).

The preparation phase is the responsibility of the department for strategic planning and corporate development, or the functional unit responsible for these areas (stage 1). The developed corporate strategy of the enterprise is presented to the management and owners of the enterprise for protection, who, for the enterprise as a whole, finally determine the priority tasks in the competitive struggle (stage 2). Preliminary tasks in competition in the market are formulated in accordance with corporate goals and directions of development of the enterprise.

At this stage, it is necessary to determine the nature of the competitive struggle (for example, offensive or defensive), who exactly needs to be squeezed out in the market, who (for example, competitor “A”) can be forced to divert their resources from market “a” by switching it to this market and weakening its position in the strategically important market “b”). This approach makes it possible to compete globally through local clashes with specific competitors. It must be remembered that only the hierarchy of strategic planning at an enterprise (general corporate strategy - competitive strategy in the market) allows effective global competition. This approach has become especially relevant right now - a global market has formed, and interstate borders have become almost transparent for capital, goods, and labor resources. As a result, a change in the situation in one market can influence another market, and, accordingly, its participants.

In the development phase, the tasks that were formulated by the management of the enterprise are conveyed to the functional unit responsible for marketing and sales. Subsequently, analysts of this division analyze the market, with the key points of analysis being the intensity of competition in the market and the competitive position of the enterprise (stage 3). Based on the analysis, a suitable competitive strategy is selected (step 4). Next, this strategy is analyzed from the point of view of compliance with general corporate objectives that were formulated by management, as well as from the point of view of the enterprise's capabilities. Marketing competitive strategy, as noted above, is determined based on external factors (analysis of environmental conditions) and internal factors (available company resources). In order to get a clear assessment of the internal capabilities of the enterprise and the market situation, you can use SWOT analysis.

The use of SWOT analysis is necessary for systematizing available information and subsequent making management decisions. Therefore, SWOT analysis can be called an intermediate link between the formulation of a company’s competitive strategy and the development of a competitive plan (stage 5). Everything happens in the following sequence:

Determination of the main competitive strategy of the enterprise in the planning period.
Comparison of the internal forces of the enterprise and the market situation in order to understand whether the enterprise can implement the chosen competitive strategy, and how this can be done (SWOT analysis).
Formulation of goals and local tasks, taking into account the real capabilities of the enterprise (development of a competitive plan). Below is a diagram showing the place of SWOT analysis in the development of a competitive strategy (Fig. 3).

Figure 3. The place of SWOT analysis in developing a competitive strategy

As another criterion for assessing and adjusting the chosen competitive strategy, managers need to consider the corporate goals of the enterprise, which are based on the mission and overall development strategy. This coordination is necessary to ensure that the chosen competitive strategy in a particular market does not negative influence for the development of the enterprise as a whole. For example, an attack on competitors (with the aim of ousting them from the market) or the absorption of some of them can significantly increase the company’s market share, but at the same time exceed the standards of antimonopoly legislation or the costs incurred cannot be recouped.

If the competitive strategy satisfies all the requirements, the process of developing a competitive strategy moves into the implementation phase. In this phase, the developed strategy is put into practice - marketing and sales specialists of the enterprise act in the market in accordance with the approved strategy (stage 6). The main difficulty at this stage is that it is necessary to competently implement the developed strategy and then evaluate its effectiveness. The implementation of this task can be helped by a plan for implementing a competitive strategy, the structure of which is proposed below.

1. Summary.

This section of the competitive plan is the last to be drawn up and in its final form should begin with a statement of goals, a description of the strategy and short plan actions to achieve the set goal and implement the strategy. A summary that helps management quickly understand the main provisions of the plan.

2. Description and analysis of the current market situation.

Brief political and economic situation of the region/country market.

Analysis of the market and consumers of the product in a given region/country.

3. Description and analysis of competition in the market.

Analysis of competitors' activities.

Analysis of the enterprise's competitive position in the market.

Assessing the intensity of competition in the market.

4. Results of the previous period.

Actual and planned results of the previous period.

Analysis of the results of the previous period. Description of the reasons for non-fulfillment or over-fulfillment of the plan.

5. Setting goals and describing the chosen strategy.

The competitive strategy is determined based on the results of a study of the competitive environment and the position of the enterprise in the market.

6. Evaluation of the chosen competitive strategy.

The chosen strategy is assessed based on an analysis of the external environment and internal capabilities of the enterprise (SWOT analysis). In addition, the chosen competitive strategy must be reviewed for consistency with corporate goals. Here you should also characterize the chosen competitive strategy, describe the necessary conditions for the successful implementation of the competitive plan and possible reasons, which could interfere with its execution.

7. Implementation plan for the chosen competitive strategy.

In this section it is necessary to set out:

A. Quantitative goals that define absolute sales volume and relative growth rates. At the same time, these indicators must be expressed both in the number of units of goods (new customers attracted) and in monetary terms. Another important basic indicator of the planning period is the company's market share, which it plans to occupy by the end of the period.

B. A set of activities and actions to achieve set goals. Competitive strategy is considered in accordance with the marketing mix (four “I” - product, price, distribution, promotion). This circumstance allows it to be successfully implemented by accurately distributing tasks and functions between various departments of the company, as well as subsequently analyzing the effectiveness of the competitive strategy after the planned period. The events must also take into account such points as the need to conduct tests, standardization, presentations, sending specialists for specific purposes (market research, negotiations, participation in exhibitions, provision and development service, etc.). Each event is assigned deadlines, as well as specific performers.

8. Budget for the planned period.

The required volume is analyzed cash aimed at implementing a competitive strategy.

It is well known that any activity must begin with planning, long before the first step is taken in the chosen direction. The main task of a competitive plan is not only to indicate the direction, but also to describe the route, the procedure for achieving set goals - conducting research on competitors, preparing response actions and their implementation. Thus, the competitive plan discussed above is an applied tool for the development and implementation of competitive strategies in an enterprise.

At the end of the reporting period, the results obtained during the implementation of the competitive strategy are analyzed, and the resulting effect is determined (stage 7). At this stage, the main role is played by the competitive plan, which, in essence, is the source of accumulation of experience by the enterprise. By analyzing its activities in past periods, an enterprise can constantly improve and expand its scope of activities, adequately respond to market changes, strengthen its market position and conquer new markets. Key questions that need to be answered:

Is the chosen strategy correct?
competitors' reaction?
correctness of the planned activities and compare the results obtained with the planned ones?
effectiveness in completing assigned tasks?
highlight successful and unsuccessful approaches, methods, ideas?

If the competitive strategy turns out to be effective and has positive results for the company, then issues of its adjustment and relevance in the next reporting period are considered. After which an updated competitive plan with new goals is developed (step 8). If the competitive strategy did not have a positive effect or had negative consequences, the reasons are determined and a new competitive strategy is developed.

Often, a competitive strategy is something isolated in the strategic planning of an enterprise, yet it is directly integrated into it and is its integral part. Submitted by step-by-step algorithm The development of a competitive strategy and a plan for implementing the developed strategy make it possible to establish a closed cycle of competitive strategic planning.

MacDonald M. Strategic marketing planning. St. Petersburg: Peter, 2000. P. 76.

Day J. Strategic Marketing. M.: Eksmo, 2003. P. 159.

Hill Charles W.L. International Business: Competing in the Global Marketplace. – McGraw-Hill Higher Education, 2004.

Bagiev G.L., Tarasevich V.M., Ann H.Marketing. – M.: Economics, 1999.

Introduction 3

Chapter 1. Theoretical foundations for developing an enterprise competition strategy 5

1.1. The essence and types of competition strategies 5

1.2. Justification for choosing a competition strategy 11

Chapter 2. Analysis of competition of an enterprise (using the example of JSC PPRZ) 15

2.1. Brief characteristics of PPRZ CJSC 15

2.2. Analysis of the competitive position and competition strategies of PPRZ CJSC 21

Chapter 3. Improving the competition strategy of PPRZ CJSC 28

Chapter 4. Economic efficiency of the proposed measures 32

Conclusion 36

References 38

Introduction

In the context of the development of a market economy, the issues of forming new competitive potential, identifying, developing and creating prerequisites for the sustainability of competitive advantages, and choosing the correct form of competitive behavior are of particular importance for the successful functioning of an enterprise. The very concept of competitive advantage has now become particularly relevant as the growth of companies around the world has slowed down and the behavior of competitors has become increasingly aggressive.

The main thing was not just to achieve and identify a competitive advantage, but to make it sustainable. Competitive advantage is those characteristics and properties of a product that create for the enterprise a certain superiority over its competitors, and for the consumer - the optimal combination of consumer characteristics of the product. Superiority is assessed in comparison, therefore it is a relative characteristic and is determined by various factors.

For successful operation, an enterprise needs to develop the right competition strategy based on its competitive advantages, which actualizes the study of forms of competition in modern conditions.

The importance of strategic behavior that allows a firm to survive competition in the long term has increased dramatically in recent decades. All companies, in conditions of fierce competition and a rapidly changing situation, must not only focus on the internal state of affairs in the company, but also develop a strategy for long-term survival that would allow them to keep up with the changes occurring in their environment. Now, although the task of rational use of potential in current activities is not removed, it is becoming extremely important to implement such management that provides competitive advantages in a rapidly changing environment.

Business practice has shown that there is no competitive strategy that is the same for all companies, just as there is no single universal strategic management. Each company is unique in its own way, and the process of developing a competitive strategy for each company is unique, since it depends on the company’s position in the market, the dynamics of its development, its potential, the behavior of competitors, the characteristics of the goods it produces or the services it provides, the state of the economy, cultural environment and much more.

Thus, relevance The study and application of competitive methods in company management is increasingly increasing. This is what determined the choice of the topic of the course work.

The object of the study was JSC "Perm Spring and Spring Plant".

Target The course work consists of analyzing the competitive properties of PPRZ CJSC and developing a competition strategy for it. This goal determined the formulation of the following research tasks:

1. Consider the theoretical foundations for developing an enterprise’s competition strategy; characterize the main types of competition strategies and justify the choice of competition strategy;

2. Analyze the competitive position and competition strategies of PPRZ CJSC;

3. Suggest directions for improving the competition strategy of PPRZ CJSC;

The structure of the work corresponds to the assigned tasks.

Chapter 1. Theoretical foundations for developing an enterprise competition strategy

1.1. The essence and types of competition strategies

Competition - (from the Latin Concurrer - to collide) - the struggle of independent economic entities for limited economic resources. This is an economic process of interaction, interconnection and struggle between enterprises operating on the market in order to provide better opportunities for marketing their products, satisfying the diverse needs of customers.

In the marketing system, a company operating in the market is considered not on its own, but taking into account the entire set of relationships and information flows connecting it with other market entities. The environmental conditions in which the company operates are usually called the marketing environment of the company. Kotler F. defined the marketing environment of a company as follows: The marketing environment of a company is a set of active subjects and forces operating outside the company and influencing the ability of the management of the marketing service to establish and maintain successful cooperative relationships with target clients.

Strategy is long-term actions aimed at achieving goals. Implementation of strategy is a set of actions that contribute to increasing business activity in organizational and financial spheres, developing company policy, creating a corporate culture and motivating staff, managing everything aimed at achieving the intended results.

A competitive strategy is a set of specific steps and approaches that a firm takes or plans to take in order to successfully compete in a given industry.

For the first time, business was faced with the problem of strategic planning in an economic crisis. It is in such conditions that all the weaknesses of some enterprises and the strengths of others become clearly visible. And it is precisely in such periods that it becomes more obvious than ever where enormous resources were wasted, which will never give the expected effect. Then the competition intensifies to the limit, and the winner is the one who manages to achieve greater results. competitive advantages- advantages not over competitors, but advantages in relation to the consumer.

Competitive advantage is the assets and other strengths of a firm that give it an advantage over its competitors. Competitive advantages must ensure the uniqueness of the brand and satisfy the specific needs of the client. Strategic success factors are based not on objective, but on subjectively perceived benefits by the consumer. The task of management is to identify and develop the potential for success and transform it into appropriate factors.

Conquering and maintaining competitive advantages is, as is known, a key function of strategic enterprise management. It is especially important to achieve advantages in saturated markets where demand is satisfied by many suppliers.

According to competition researcher F. Kotler, a firm in competition can play one of four roles. Marketing strategy is determined by the company's position in the market, whether it is a leader, challenger, follower, or occupies a certain niche:

1. The leader (market share of about 40%) feels confident.

2. Contender for leadership (market share about 30%). Such a company aggressively attacks the leader and other competitors. As part of special strategies, the challenger can use the following attack options:

· “frontal attack” - is carried out in many directions (new products and prices, advertising and sales - competitive advantages), this attack requires significant resources.

· “encirclement” - an attempt to attack all or a significant market area of the market.

· “bypass” - the transition to the production of fundamentally new goods, the development of new markets.

· “gorilla attack” - small impetuous attacks using not entirely correct methods.

3. Follower - (20% share) a company that strives to maintain its market share and get around all the shallows. However, even followers must adhere to strategies aimed at maintaining and increasing market share. The follower can play the role of imitator or double.

4. Entrenched in a niche market - (10% share) serves a small segment of the market that large firms do not care about. Several niches are preferable to one. Such firms do not have any special competitive advantages, except that large firms do not see them as competitors and do not “pressure”.

The task of a competitive strategy, according to M. Porter, is to bring the company to a state in which it can fully use its advantages. It follows that in-depth competition analysis is an important part of strategy formulation.

M. Porter identified five forces of competition that determine the level of profit in the industry. This:

Penetration of new competitors;

The threat of the appearance on the market of substitute goods produced using a different technology;

Buyer capabilities;

Supplier capabilities;

Competition between companies that have already established themselves in the market.

Competitive strategies (business strategies) come from an understanding of the rules of competition that operate in an industry and determine its attractiveness. The goal of competitive strategy is to change these rules in favor of your company. The rules of competition can be represented as the five forces of competition shown in the figure.

Rivalry, according to Porter, occurs when one or more competitors experience difficulties or see opportunities to improve their position. The intensity of competition can vary from polite gentlemanly forms to the most severe "cut-throat" techniques.

Porter notes a number of the following factors that determine the intensity of competition:

a large number of competitors or approximately equal strength;

slow industry growth;

high level of fixed costs in the form of overhead or inventory costs;

lack of differentiation (no conversion costs);

quantitative leap in capacity;

various types of competitors;

high strategic importance;

high output barriers.

By general strategies, Porter means strategies that have universal applicability or are derived from some basic postulates. In his book “Competitive Strategy,” M. Porter presents three types of general strategies aimed at increasing a company’s competitive advantages. A company that wants to create a competitive advantage must do strategic choice so as not to “lose your face.”

There are three basic strategies for this:

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Development of an enterprise strategy, factors influencing its competitiveness. Methodology of competitive strategies of a trading enterprise. Analysis of the activities of Balterm LLC. Proposals for the formation of strategic competitive advantages of products.

thesis, added 01/08/2014

Types of competitive advantages of an organization, characteristics of strategies for achieving them. Analysis current state and practice of achieving competitive advantages of Arena S LLP. Innovative strategies as a factor in ensuring competitive advantage.

thesis, added 10/27/2015

The essence of strategic management. Prerequisites for the application of strategic management in enterprises. Diagnostics of the enterprise’s external environment based on SWOT and PEST analyses. Study of the competitiveness of the enterprise and its competitive advantages.

thesis, added 08/16/2010

Diagnostics of the external environment of the State Enterprise "Plant named after Malyshev" based on SWOT and PEST analyzes. Study of the competitiveness of the enterprise and its competitive advantages. Development of functional enterprise strategies, its effectiveness and implementation features.

thesis, added 08/26/2010

Savchenko D.D., Panteleeva M.S. Development of a competitive strategy of an enterprise based on an analysis of its activities // Universum: Economics and jurisprudence: electronic. scientific magazine 2015. No. 8(19). URL: http://7universum.com/ru/economy/archive/item/2467 DEVELOPMENT OF A COMPETITIVE STRATEGY OF AN ENTERPRISE BASED ON ANALYSIS OF ITS ACTIVITIES Savchenko Denis Davidovich Bachelor of Economics, Federal State Budgetary Educational Institution of Higher Professional Education "Moscow State Construction University", Russian Federation, Moscow E- mail: [email protected] Panteleeva Margarita Sergeevna Ph.D. economy Sciences, senior lecturer of the department. economics and management in construction, Federal State Budgetary Educational Institution of Higher Professional Education "Moscow State University of Civil Engineering", Russian Federation, Moscow E-mail: [email protected] THE DEVELOPMENT OF COMPETITIVE STRATEGY OF THE ENTERPRISE BASED ON THE ANALYSIS OF ITS ACTIVITY Denis Savchenko Bachelor of Economics, FSBEI HPO “Moscow State University of Civil Engineering”, Russia, Moscow Margarita Panteleeva Candidate of Economic Sciences, Senior Lecturer of Economics and Management in the Construction Industry Chair, FSBEI HPO “Moscow State University of Civil Engineering”, Russia, Moscow ABSTRACT This article updates strategic planning within the framework of economic competition that is intensifying every year. The market economy forces us to look at things differently external conditions the company’s activities, and one of the most important aspects of the changing behavior of economic entities is the frequency of changes in customer preferences, quality and range of products of its main competitors. ABSTRACT The article actualizes the strategic planning within the framework of growing economic rivalry year by year. The market economy makes us have another look at the external environment of the company's activity, and one of the most important aspects of the changing behavior of the subjects of the economic sphere is the rate of consumer preferences change, quality and product assortment of leading competitors . Keywords: economics, competitiveness, management, goods, services, management, financial and economic indicators, financial activities, strategy. Keywords: economics, competitive ability, management, product, services, management, financial and economic indicators, financial activity, strategy. The purpose of this study is to create an algorithm for developing a competitive strategy, as well as to develop a model for diagnosing the competitiveness of an enterprise. The technique developed in this article has practical significance and can be used by organizations to develop competitive strategy. The strategy itself is the foundation in enterprise management, which should ensure the growth and development of the enterprise, as well as increasing the competitiveness of the products, goods and services provided by the enterprise. Market “rules” determine the behavior of all firms: new and established, small and large corporate giants. There is no single strategy for an enterprise, since its formation is a very difficult process, depending on many factors, such as the potential of the enterprise, the characteristics of the services or goods it produces, as well as the behavior of its competitors. The significance of the problem of unified strategic development for Russian enterprises necessitates additional development of the theoretical and methodological foundations of marketing, research on strategy development, as well as theoretical and practical recommendations aimed at increasing competition in the enterprise and its development. Whatever the enterprise, it needs to choose a certain model of behavior in the market (see table 1) in order to maximize profits and stay afloat. Table 1. Types of competitive strategies (source: compiled by the author) Types of competitive strategies Description Leadership strategy in cost minimization Reducing the costs of producing goods and services, as well as their implementation. The goal of working in the format of this strategy is to find ways to reduce these indicators without resorting to deterioration in product quality. Diversification strategy Implies the presence of positive qualitative differences between the proposed product and competitors' products. Within this strategy, minimizing production costs is not a priority. Focus strategy Implies concentration on a specific market segment, while using cost minimization and product differentiation strategies, both simultaneously and separately. The main difference from previous competitive strategies is that the enterprise will compete in a narrow market segment. This choice depends directly on the level of competitiveness of the enterprise that independently analyzes the market. Based on the scope of activity of enterprises, competitiveness depends on the following factors: 1. the specifics of services or goods offered on the market; 2. features of the competitive market. Whether it is a monopolistic, oligopolistic or a completely competitive market; 3. How developed is the enterprise's production activities, logistics, enterprise management, response time to new information; 4. comparative advantage of the enterprise in relation to competitors. In addition, it should be noted that the competitiveness of an enterprise is a relative value and the basis for comparing its level is the same indicators as for assessing competing enterprises. Factors of competitiveness are divided into internal and external. Internal factors of competitiveness: 1. reputation, 2. level of personnel, 3. quality of goods and services, 4. enterprise value, 5. technology, 6. logistics, 7. quality of management level, 8. personnel motivation. External factors of competitiveness: 1. customs policy, quotas, 2. state insurance in the country, 3. legal protection of consumers, 4. level economic development, 5. credit policy. External factors do not depend on the organization of the enterprise and can influence its activities. Internal factors, on the contrary, directly depend on the actions of company leaders. To ensure the competitiveness of an enterprise, it is also necessary to pay great attention to management. Therefore, internal factors of competitiveness special attention pay attention to the level of company management. The general idea of developing a competitive strategy is a program of action that allows you to obtain a positive economic effect due to the fact that the company finds itself in a stronger position. The development and implementation of a competitive strategy can be represented in the form of a diagram shown in Figure 1. Figure 1 Algorithm for the development and implementation of a competitive strategy This scheme shows that the function of competitive strategic planning in an enterprise is carried out using basic principles, that is, the rules for the formation and implementation of strategy in the market: 1. continuity and accumulation; 2. sequence of stages performed; 3. cyclicality. 1) Continuity and accumulation. Before developing a strategy, an enterprise must analyze previous experience, find out what actions were useful in the competitive struggle, and check their relevance at the current moment. Studying past experience will allow the company to avoid old mistakes when developing a new strategy. 2) The sequence of stages performed. This rule is caused by the dependence of the subsequent stage on the previous ones. This will allow you to avoid mismatch between the competitive strategy and market conditions, mistakes that have already happened in the past, and evaluate the results obtained during the implementation of this strategy. 3) Cyclicity is manifested in the fact that the results of implementation must be analyzed and taken into account in subsequent developments of strategies, since the competitive strategy is constantly adapted to the competitive environment. Competitive strategy is an important tool in the hands of managers, since it is aimed at solving a number of tasks and problems that the company faces. Firstly, all the material obtained and structured during the creation of the strategy allows both management and executors to clearly consider the situation on the market, the company’s position in it, the reality of goals and ways to achieve them. Secondly, a competitive strategy acquires the force of an organizational and administrative document, that is, it concentrates forces in the required direction. And thirdly, by analyzing its past activities, a company can constantly improve and expand its scope of activities, respond to market changes, strengthen its position and conquer new markets and niches. In practice, one often encounters a situation where there is a gap between the theory of competitive strategies and the practice of its application in an enterprise. The algorithm proposed below for developing and implementing a competitive strategy for an enterprise can help minimize this gap. According to the algorithm in Figure 1, the development and implementation of a competitive strategy is carried out through the sequential implementation of 8 main stages. 1. Mission and corporate development strategy of the enterprise. 2. Formulation of tasks in competition in the market. 3. Collection and analysis of information about external and internal environment enterprises. 4. Choosing a competitive strategy for an enterprise in the market. 5. Analysis of the chosen strategy. 6. Implementation of competitive strategy through a developed plan. 7. Analysis of results. 8. Adjustment of the existing strategy or development of a new, more effective strategy that will be able to achieve the objectives set by the overall corporate strategy of the enterprise. It is important to note that in the hierarchy of strategic planning, competitive strategy is lower than the general corporate strategy for enterprise development. The development of a competitive strategy should begin after completion of work on the overall corporate strategy of the enterprise. Due to the fact that the development and implementation of a competitive strategy affects various functional units, it is necessary to differentiate each stage of the algorithm into three phases: I. Preparation phase (1 and 2): allows you to determine the nature of the struggle. For example, retreating or defensive. II. Development phase (3, 4, 5): tasks are transferred to functional units that are responsible for marketing and sales. Subsequently, analysts of this division analyze the market, with the key points of analysis being the intensity of competition in the market and the competitive position of the enterprise. III. Implementation phase (6, 7, 8): the actual implementation of the strategy occurs. Figure 2. Model for diagnosing the competitiveness of enterprises (source: compiled by the author) However, a detailed step-by-step plan for creating and implementing a competitive strategy within the framework of market analysis requires an assessment of its effectiveness. For this purpose, competitiveness is considered as an integral indicator consisting of the following components: 1. competitiveness of products; 2. efficiency of the enterprise; 3. commercial efficiency of the enterprise; 4. level of market concentration. The first component, which largely determines the competitiveness of a construction enterprise, is its products (services). Classically, the competitiveness of a product is understood as the totality of its quality and cost characteristics that ensure that products (goods, works, services) meet market requirements in a certain period of time. All product parameters in the construction industry are classically divided into consumer, economic and marketing. To assess the level of product parameters, it is proposed to use an expert scoring method, according to which the rating scale has the form (PI): from 0 to 0.5 - if the parameter is worse than the competitive one; 0.5 - if the parameter is completely identical to the competitive one; from 0.5 to 1.0 - if the parameter exceeds the competitive one. According to the integral level, the competitiveness of the enterprise’s products (Ki) will be determined by the formula shown in Figure 2. It is advisable to use the above-mentioned approach in relation to the assessment of product parameters in each product group. According to the results obtained, if Ki exceeds the limit of 0.5, then the product is competitive in comparison with the products of competitors, but if this indicator approaches 1, then the product can be identified as highly competitive. If Ki is less than the limit of 0.5, then this indicates the non-competitiveness of the product in the relevant market. The next component of diagnosing the competitiveness of a construction enterprise is assessing the effectiveness of its functioning according to the following components: financial and economic efficiency, production efficiency and commercial efficiency. It is proposed to evaluate the financial and economic efficiency of an enterprise by selecting the most representative indicators of financial condition, in particular, the ratios of return on assets, total liquidity, autonomy, and capital productivity. The above indicators allow us to identify the profitability and intensity of use of the enterprise's capital, capital structure and solvency. It is proposed to assess production efficiency based on relative indicators of capital productivity, material productivity, productivity, profitability of production and the share of defects in output volume. This allows us to determine the level of resource efficiency of production, profitability and quality of products (services). In order to diagnose commercial efficiency, it is proposed to be guided by such indicators as the profitability ratio of product sales, the level of supply reliability, and the level of warehouse overstocking finished products , average repayment terms of receivables and payables. The above indicators allow us to evaluate the profitability of product sales, the quality of sales activities and work with consumers of the enterprise. To form an integral level of enterprise operating efficiency, there is a need to convert indicators into relative values according to the developed scale: from 0 to 0.5 - if the indicator is worse than the base one; 0.5 - if the indicator is completely identical to the base one; from 0.5 to 1.0 - if the indicator exceeds the basic one. It is worth noting that the industry average or market average should be taken as the basic indicators. According to the noted expert scale, the above indicators are converted into point estimates, they are also given weights, which makes it possible to obtain integral levels of various components of the efficiency of the enterprise. Based on the generalization of the values of these levels using the geometric mean, the integral level of efficiency of the enterprise is determined using the formula shown in Figure 2. The interpretation of the results obtained is carried out in a similar way: if Er exceeds the value of 0.5 and approaches 1, then we can talk about a high level of efficiency functioning of the enterprise and exceeding the industry average or market average level for this parameter; if Er is equal to 0.5, then this indicates full compliance with the efficiency standards established in the region. If Er is less than 0.5, then this demonstrates significantly worse performance parameters of the enterprise compared to its competitors. An important component of diagnosing the competitiveness of a construction enterprise is taking into account the level of market concentration, because if the market is highly monopolized, then even if there are high-quality and inexpensive products and a high level of operating efficiency, the enterprise will not be able to gain a foothold in it. Considering that the indicator for assessing the level of market concentration in our method is corrective in its content, then to calculate it we will use the Herfindahl-Hirschman coefficient (Ik), the calculation formula for which is shown in Figure 2. If Ik approaches 0, then this indicates the absence of concentration market and its competitiveness; if Ik approaches 1, then we are talking about a highly monopolized market. This indicator is used on a reverse scale. Based on the above, the integral level of competitiveness of the enterprise is calculated taking into account market concentration using the formula shown in Figure 2. Based on the calculation results, we will obtain a comprehensive level of competitiveness of the enterprise. If KKR approaches 1, then this indicates a high level of competitiveness of the enterprise; if it is equal to 0.5, then the enterprise is equal to its competitor; if KKR is less than 0.5 and approaches 0, then the enterprise is uncompetitive. The proposed approach allows us to take into account all the essential parameters that shape the competitiveness of a construction enterprise: products, operating efficiency and concentration of the operating market. This method is also intended for self-diagnosis of the competitiveness of an enterprise, since it is largely based on expert assessment by enterprise specialists of their own competitive advantages. Today important issue The economic climate of the country has become a competitive struggle, since competition acts as an accumulator for the activities of many economic agents. The problem also lies in the fact that the emergence of modern construction enterprises occurs in conditions of a fierce struggle, which they are not ready and do not know how to fight. A timely created and applied competitive strategy is effective tool development and economic activities of any construction organization, therefore the modern direction of the enterprise’s marketing policy should be closely intertwined with external environment the life of a company, which includes not only competing firms, but also buyers and suppliers. References: 1. Borozdina S.M., Panteleeva M.S. Marketing policy of an enterprise as the basis of a systematic approach to the analysis of its activities // Internet journal “Naukovedenie”. - 2015. - T. 7, No. 2 / [ Electronic resource]. - Access mode: http://naukovedenie.ru/index.php?p=pricing (date of access: 07/13/2015) 2. Borozdina S.M., Panteleeva M.S. Increasing the competitiveness of a construction enterprise on the basis of a marketing information system // Scientific review. - 2013. - No. 3. - P. 277-280. 3. Vainshtok N.R. Managing the competitiveness of specialized construction organizations in modern market conditions // Economics and Entrepreneurship. - 2013. - No. 11 (40). - pp. 459-462. 4. Kogotkova I.Z. Marketing research in construction. - M., 2009. - 328 p. 5. Kutuzova T.Yu. Marketing management. - M., 2015. - 255 p. 6. Marketing: a textbook for students / B.A. Soloviev, A.A. Meshkov, B.V. Musatov. - M.: Infra-M, 2013. - 335 p.