Competitive analysis as a way to combat competitors.

With the development of modern business and commerce there are new ways that helps monitor not only their work but also to describe and analyze the professional activity of your competitors.For this purpose it was created a discipline like marketing.Do not think that the industry is engaged only in their own advertising companies, brand, brand.In addition, every year by all the new techniques to effectively as possible to win the race to attract businesses and consumers a wide audience.The competitiveness of the company has not said what its many years of experience in the business world was able to free himself from potential competitors.Therefore, there are specialists who conduct competitive analysis, to determine the degree of success of just a competitive company.

If you rely on the research and proposals of scientists, it is advisable to pay attention to the traditional distribution of competitive analysis of Porter.A model of the five forces, and, as it turned out, this model essentially helps companies control their own activities.Porter argued that the more competitive the company put pressure on the activities of our company, the less chance we have to increase the value of the goods and, consequently, to obtain high profits.With the arrival of a competitor in our territory, it created a great danger for profit.Thus, our company must have three qualities, to prevent intrusion into our business - it is:

  • loyalty on the part of buyers to our brand;
  • our production costs should be significantly lower;
  • Given the scale of the enterprise, it is necessary to adhere to austerity with the purchase of a large quantity of goods (discounts for bulk goods).

second force Porter called just competition between companies.In this case, competitive analysis describes the major factors affecting the degree of competition: the structure of the industry on both sides, the demand for goods.Porter argues that the faster the company regains investment, the more interest it represents for the audience.In addition, it should be noted that there is a competitive analysis of the market, which allows a more global characteristics of the entire market of your production and to estimate the basic conditions for its activities.

not difficult to guess that as long as the process proceeds industry, competition between the two companies will always exist.So you have to ensure that the demand for your product has been activated.So, you will be able to improve their position and weaken competitive forces.With the way the market manufacturing companies begin to expand the different market areas.The logic is that the slower you continued production of the commodity, the less likely that you will be able at this time to raise the price on it.

Let us now turn to the third power, which we outlined Porter.Each company is trying to make the need for buyers disappeared, anyway, "bargain."Naturally this situation causes prices to fluctuate and competitive analysis are conducting a percentage ratio of strengths and weaknesses customer.Weak allow the company to increase the value of the goods, strong, respectively, on the contrary - not.The power of buyers is expressed when they buy this or that product in large quantities, or if the company is composed of several small companies, given that buying activity has fallen sharply.

In describing this process, competitive analysis, an example of which you can find in any business magazine highlights also the latest force - influence suppliers.This force explains that due to the rise in prices provider company is required to significantly reduce the price of the product, which leads her to the losses.

That is why the success of your business you should use competitive analysis, which can calculate all the strategic plans of the competitive enterprise.