Competitive. Competitors: types, types of competition

The most common market segmentation methods are

groupings according to one or more characteristics and methods of multivariate statistical analysis. Grouping method consists of a consistent breakdown of a set of objects into groups according to the most significant characteristics.

By successive splits into two parts, the sample is divided into a number of subgroups. A certain characteristic is singled out as a system-forming criterion (the owner of the product, the consumer intending to purchase the product), then subgroups are formed in which the significance of this criterion is much higher than for the entire set of potential consumers of this product.

Choosing a market coverage strategy.

When choosing a market coverage strategy, you need to consider the following factors:

Firm resources. When resources are limited, a concentrated marketing strategy turns out to be the most rational.

Degree of product homogeneity. The undifferentiated marketing strategy is suitable for uniform products. For products that may differ from each other in design, such as cameras, cars, differentiated or concentrated marketing strategies are more suitable.

Stages life cycle goods. When a company enters the market with a new product, it is advisable to offer only one version of the new product. In this case, it is most reasonable to use undifferentiated or concentrated marketing strategies.

Degree of market homogeneity. If buyers have the same tastes, purchase the same quantities of goods at the same periods of time, and respond in the same way to the same marketing stimuli, it is appropriate to use an undifferentiated marketing strategy.

Marketing strategies of competitors. If competitors are engaged in market segmentation, an undifferentiated marketing strategy can be disastrous. Conversely, if competitors use undifferentiated marketing, the firm will benefit from using a differentiated or concentrated marketing strategy.

Homework - answer the questions:

What is market segmentation?

Types of marketing, depending on three options for market coverage?

Lecture “Competition and its types”

Competitors- these are the subjects of the marketing system who, through their actions, influence the company’s choice of markets, suppliers, intermediaries, the formation of an assortment of goods and the entire complex of marketing activities (which entails the need to study them). Competing firms are companies that have a completely or partially coinciding fundamental niche - a set of market segments for which the product and/or service produced by this company is suitable. The presence of competing firms gives rise to such a phenomenon in the economy as competition. From an economic point of view, competition- the economic process of interaction, the relationship between the struggle of producers and suppliers when selling products, competition between individual producers or suppliers of goods and/or services for the most favorable production conditions, this is competition between individuals and business units interested in achieving the same goal. Market competition is the struggle of firms for the limited volume of effective consumer demand, waged by firms in the market segments available to them. From a marketing point of view, competition concerns only the struggle that firms wage when promoting their goods and/or services to the market; competition is conducted for a limited amount of effective demand.It is the limited demand that forces firms to compete with each other. After all, if demand is satisfied by the product and/or service of one company, then all others are automatically deprived of the opportunity to sell their products. And in those rare cases when demand is practically unlimited, the relationship between firms offering similar products is often more like cooperation than competition. This situation, for example, was observed at the very beginning of reforms in Russia, when the small quantities of goods that began to arrive from the West were faced with an almost insatiable domestic demand.

Market competition develops only in accessible market segments. Therefore, one of the common techniques that firms resort to in order to ease the pressure of competitive pressure on themselves is to enter market segments that are inaccessible to others.

Characteristics of the main types of competition in marketing

Type of competition	Characteristic
Functional	Competition of technical means designed to perform the same function (moving goods, transporting people)
Species	Competition of goods intended for the same purpose, but differing in parameters (automotive and tractor with different engine power)
Subject	Competition of identical products
Price	Used to penetrate the market with new products. Straight price competition- notification of a reduction in prices for manufactured and marketed goods (by 20-60%). Hidden price competition - introducing a new product with improved consumer properties, and the increase in price is not proportional to the increase in properties, but is somewhat lower
Non-price	Providing the buyer with more services, reducing delivery times, reducing energy intensity, crediting returned goods
Unscrupulous	Selling goods at prices below the nominal level, industrial espionage, poaching specialists who hold secrets, releasing counterfeit goods, using foreign trademarks, spreading false information about competitors.
Creative	Aimed at establishing cooperation between competitors in the field of production and marketing

IN modern world price competition has lost such importance in favor of non-price methods of competition. This does not mean, of course, that “price war” is not used in the modern market; it exists, but not always in an explicit form. The fact is that the "price war in open form is possible only until the company exhausts its reserves for reducing the cost of goods. In general, competition in an open form leads to a decrease in the rate of profit, a deterioration in the financial condition of firms and, as a consequence, to ruin. Therefore, firms avoid conducting price competition in an open form. Price competition is currently used usually in the following cases:

Outsider firms in their fight against monopolies, with which outsiders have neither the strength nor the ability to compete with them in the sphere of non-price competition;

To penetrate markets with new products;

To strengthen positions in the event of a sudden aggravation of the sales problem.

With hidden price competition, firms introduce new product with significantly improved consumer properties, and the price is raised disproportionately little.

Non-price competition brings to the fore the higher use value of a product than its competitors (firms produce goods for more high quality, reliable, provide lower consumption costs, more modern design).

Illegal methods of non-price competition include:

Industrial espionage;

Poaching specialists who know production secrets;

The release of counterfeit goods that are no different in appearance from genuine products, but are significantly inferior in quality, and therefore are usually 50% cheaper;

Purchasing samples for the purpose of copying them.

The following main directions can be identified competitive activity companies:

1) Competition in the field of raw materials markets for gaining positions in resource markets in order to provide production with the necessary material resources, advanced materials, highly qualified specialists, modern equipment and technology in order to ensure higher labor productivity than competitors.

The competitors of an enterprise in the commodity markets are mainly manufacturers of analogous products that use similar material resources, technology, labor resources;

2) Competition in the field of sales of goods and/or services on the market;

3) Competition between buyers in sales markets.

Depending on the intensity of competition in this environment, the company predicts prices for certain goods and organizes its sales activities.

In a saturated market, competition among buyers gives way to competition among sellers. In this regard, among these three areas of competitive activity of the company, the greatest interest, from a marketing point of view, is the competition of sellers in the field of sales of goods and/or services on the market. The remaining two areas are buyer competition.

Since competition in marketing is usually considered in relation to the consumer, then various types competition correspond to certain stages of consumer choice. In accordance with the stages of consumer decision-making about a purchase, the following types of competition can be distinguished:

1) competing desires.

This type of competition is due to the fact that there are many alternative ways for consumers to invest money;

2) functional competition.

This type of competition is due to the fact that the same need can be satisfied in various ways(there are alternative ways to satisfy the need).

This is a basic level of studying competition in marketing.

3) inter-firm competition.

This is a competition between alternatives to the dominant and most effective ways satisfy the need.

4) inter-product competition.

This is competition between a company's products. It is not competition in essence, but is a special case of an assortment range, the purpose of which is to create an imitation of consumer choice.

Types of competitive situations in the market

Homework:

List the main types of competition in marketing

What is illegal competition?

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The essence of a market economy is competition. In order to survive and succeed, businesses must know their competitors and their successes, especially when it comes to key criteria. Since competitors directly and indirectly influence product sales and profit of the enterprise, it is necessary to carefully study them during market analysis.

Competition refers to rivalry between individuals and business units interested in achieving the same goal in some field.

When identifying competition, 5 questions are decisive:

1. Who is the competitor.
2. What is their strategy.
3. What are their strengths and weaknesses.
4. What is the way they react to changes in external conditions.
5. What are their goals.

Four levels of competition can be defined:

1. The company evaluates those who offer a similar product in the same price zone.
2. The enterprise extends the definition of a competitor to all sellers of the same product.
3. The enterprise extends the definition of a competitor to all firms that satisfy the same need.
4. The enterprise includes among its competitors enterprises that sell goods of the same purpose.

The seller selling the product is obliged to capture the attention of buyers and encourage them to purchase the product. Naturally, the consumer properties of goods are assessed by buyers: one of these goods is given preference, and these goods are purchased. The sales process may not take place if the goods produced do not meet the conditions for their sale and are not in demand. So, competition is characterized by:

1. The presence of several rivals.
2. The same field of activity.
3. Coincident target.

From a marketing perspective, there are 3 types of competition:

1. Functional competition. It is due to the fact that the need can be satisfied in a variety of ways. All products that satisfy a specific need are functional competitors. A typical example is products that satisfy the needs of spending time on the road (chess, books, maps, etc.). Functional competition is also typical for choosing concert events, visiting museums, etc.
2. Species competition. It is a consequence of the fact that there are goods intended for the same purpose, but differing from each other in some significant parameters and, accordingly, having different types (for example, bicycles of different brands, motorcycles, cars).
3. Subject (inter-firm) competition arises when firms produce essentially identical goods that differ only in manufacturing quality (or are identical in quality).

Methods of competition.

According to methods, competition is divided as follows:

1. Price competition. It lies in the fact that similar goods differ in price. The way to compete is to reduce prices. This method was typical for the early periods of market development.

Price competition can be direct or hidden. In the first case, firms widely notify the public about a reduction in prices for their goods; in the second, they introduce a new product with significantly improved consumer properties to the market, while its price rises slightly.

2. Non-price competition. It is characterized by the fact that the quality of the product is higher than that of its competitors. The product is being improved in the areas of reliability, design, comfort, special attention while paying attention to the price of consumption.

The competitive strategy for first place leads to the creation of modern goods on a knowledge-intensive basis. At the same time, it is necessary to take into account the significant importance of other factors of non-price competition.

Competition, competitors and their strategies are studied using the same methods as markets. All components are important for market success, but the following are especially significant:

1. The main factors of competitiveness of foreign goods.
2. Activities in the field of advertising and sales promotion.
3. Practice in product brands.
4. Attractive side of product packaging.
5. Organization of warranty and post-warranty service.
6. Sales and its organization.
7. Product distribution channels.

product marketing demand competitive

Competition (translated from Latin - competition) in a narrow sense is competition between individuals, different economic entities in any field in order to achieve the same goal.

Competition occupies a special place in the economic sphere. Competition forces entrepreneurs to reduce prices and constantly improve their products in order to maintain their position in the market.

From a marketing perspective, competition can be three types.

1. Functional competition occurs because a need can be satisfied in several different ways. For example, various food products satisfy the nutritional needs, various sports equipment solves the physical development needs of people.
2. Species competition occurs when there are goods intended for the same purpose, but differing in some important parameter for the consumer. For example, cars of the same class may differ from each other in efficiency (rear-wheel drive and front-wheel drive cars) or engine power (Volga, Moskvich, Tavria cars).
3. Subject competition arises in situations where different companies produce almost identical products, which may differ only in quality. The most typical example of such competition is televisions, which are made from almost the same components and components, and if they differ from each other, it is only in build quality.

In addition to the types of competition, there are differences in methods of competition.

1. Price competition- by changing the price (usually reducing it), the merchant attracts attention to his product and thereby increases its sales.
2. Non-price methods competition - the consumer properties of the product are brought to the fore: product quality, its novelty, reliability of design, design, packaging, conditions of warranty and post-warranty service, as well as various methods of influencing the consumer, including advertising.

There are four main competitive structures:

1. When monopolies There is only one manufacturer on the market. This may be a company that has a patent for a product. This could be a utility company, local power company, or transport company. A government monopoly (for example, a post office, a railway company, a subway) pursues goals that are not necessarily related to making a profit. It often sets prices below cost if the product or service is of public importance.
2. Oligopoly is the dominance of a small number of fairly large firms that account for the bulk of sales in an industry. This is especially evident in automotive industry, in the funds market information technology, household appliances.
3. Monopolistic competition occurs when there are a sufficiently large number of firms producing and selling differentiated products over a wide range of prices. Firms try to create a distinctive advantage for their products and offer customers different product options for different consumer segments. In addition, firms make extensive use of branding, advertising, packaging variety, and personal selling techniques.
4. Pure competition exists when large number firms sell identical goods (agricultural products, raw materials, metals, securities) to many buyers. In such a market, prices and goods are the same. In these conditions, firms should strive to create a reliable reputation and a policy of selling at the lowest possible prices, attracting more intermediaries and traders.

Price competition dates back to the times of free market competition, when even homogeneous goods were offered on the market at a wide variety of prices.

Reducing prices was the basis by which the industrialist (merchant) distinguished his product, attracted attention and, ultimately, won the desired market share.

In the modern world, price competition has lost such importance in favor of non-price methods of competition. This does not mean, of course, that modern market“price war” is not used; it exists, but not always in an explicit form. The fact is that an open “price war” is possible only until the company exhausts its reserves for reducing the cost of goods. In general, competition in an open form leads to a decrease in the rate of profit, a deterioration in the financial condition of firms and, as a consequence, to ruin. Therefore, firms avoid conducting price competition in an open form. It is currently usually used in the following cases:

- outsider firms in their fight against monopolies, with which outsiders have neither the strength nor the opportunity to compete with them in the sphere of non-price competition;
- to penetrate markets with new products;
- to strengthen positions in the event of a sudden aggravation of the sales problem.

At hidden price competition firms introduce a new product with significantly improved consumer properties, and raise the price disproportionately little.

Non-price competition highlights the higher consumer value of the product than its competitors (firms produce goods of higher quality, more reliable, provide a lower consumption price, and have a more modern design).

Non-price methods include all marketing methods company management.

TO illegal methods non-price competition includes:

- industrial espionage;
- poaching specialists who know production secrets;
- production of counterfeit goods, outwardly no different from genuine products, but significantly worse in quality, and therefore usually 50% cheaper;
- purchase of samples for the purpose of copying them.

The following main ones can be identified directions of the company's competitive activity:

· Competition in the field of raw materials markets for gaining positions in resource markets in order to provide production with the necessary material resources, promising materials, highly qualified specialists, modern equipment and technology in order to ensure higher labor productivity than competitors.

The competitors of an enterprise in the commodity markets are mainly manufacturers of analogous products that use similar material resources, technology, and labor resources in their production;

· Competition in the field of sales of goods and/or services on the market;
· Competition between buyers in sales markets.

Depending on the intensity of competition in this environment, the company predicts prices for certain goods and organizes its sales activities.

In a saturated market, competition among buyers gives way to competition among sellers. In this regard, among these three areas of competitive activity of the company, the greatest interest, from a marketing point of view, is the competition of sellers in the field of sales of goods and / or services on the market. The remaining two areas are buyer competition.

Since competition in marketing is usually considered in relation to the consumer, different types of competition correspond to certain stages of consumer choice.

After identifying and assessing its main competitors, the company must develop marketing strategies competition, which will allow it to best position its offer in relation to the offers of competitors.

Each company must determine which strategy is best for it, given its position in the industry, as well as its goals, capabilities and resources. Even within the same company, different activities or products may require different strategies.

Companies maintain their position in the market by making competitive moves aimed either at attacking competitors or to protect themselves from the threat posed by competitors. The nature of these moves varies depending on the role that companies play in the target market - leader, challenger to leader, pursuer of leader, or the role of a company serving a market niche.

Main features of the strategies:

· Companies maintain their position in the market by making competitive moves , aimed either at attacking competitors, or to protect oneself from threats posed by competitors.
· Most industries have a recognized leader that has the largest market share and typically outpaces other companies in price changes, new product introductions, product distribution footprint, and sales promotion spending.
· Strategy for maintaining your position: find opportunities and means to increase aggregate demand; seeks to further increase market share even if market size remains unchanged; constant cost reduction must remain strong point; protecting your current market share through defensive and offensive actions.
· A company challenging a market leader must first define its strategic goal. The strategic goal is chosen depending on which of the competitors will be chosen by the company as an opponent.
· A company following a leader can receive many advantages: a follower company can learn from the leader’s experience, copy or improve his products and marketing programs, investing significantly less money and can achieve quite significant levels of profit.
· The mastering company builds its policy using the leader’s products and his marketing programs, often improving them. The explorer may choose other markets for his sales in order to avoid confrontation with the leader.
· Companies that focus on serving niche markets try to find one or more niches that are reliable and profitable. The ideal market niche should be large enough to be profitable and have the potential for growth.

Type of competition Characteristics

Functional

Competition of technical means designed to perform the same function (moving goods, transporting people)

Competition of goods intended for the same purpose, but differing in parameters (automotive and tractor with different engine power)

Subject

Competition of identical products

Used to penetrate the market with new products.

Direct price competition - notification of price reductions for manufactured and marketed goods (by 20-60%).

Hidden price competition - the introduction of a new product with improved consumer properties, and the increase in price is not proportional to the increase in properties, but is slightly lower

Non-price

Providing to the buyer more services, reduction of delivery time, reduction of energy intensity, crediting of delivered goods

Unscrupulous

Selling goods at prices below the nominal level, industrial espionage, poaching specialists who hold secrets, releasing counterfeit goods, using foreign trademarks, spreading false information about competitors.

Creative

Aimed at establishing cooperation between competitors in the field of production and marketing

Illegal methods of non-price competition include:

Industrial espionage;

Poaching specialists who know production secrets;

The release of counterfeit goods that are no different in appearance from genuine products, but are significantly inferior in quality, and therefore are usually 50% cheaper;

Purchasing samples for the purpose of copying them.

The following main areas of competitive activity of the company can be distinguished:

The competitors of an enterprise in the commodity markets are mainly manufacturers of analogous products that use similar material resources, technology, and labor resources in their production;

2) Competition in the field of sales of goods and/or services on the market;

3) Competition between buyers in sales markets.

Depending on the intensity of competition in this environment, the company predicts prices for certain goods and organizes its sales activities.

Since competition in marketing is usually considered in relation to the consumer, different types of competition correspond to certain stages of consumer choice.

In accordance with the stages of consumer decision-making about a purchase, the following types of competition can be distinguished:

1) competing desires.

This type of competition is due to the fact that there are many alternative ways for the consumer to invest cash;

2) functional competition.

This type of competition is due to the fact that the same need can be satisfied in different ways (there are alternative ways to satisfy the need).

This is a basic level of studying competition in marketing.

3) inter-firm competition.

This is a competition between alternatives to the dominant and most effective ways of satisfying a need by different firms.

4) inter-product competition.

This is competition between a company's products. It is not competition in essence, but is a special case of an assortment range, the purpose of which is to create an imitation of consumer choice.

To assess the competitive environment, you must first answer the following questions:

Who are your company's main competitors (according to criteria)?

What market share does your company occupy?

What is the competitors' strategy?

What methods do competitors use to compete for the market?

What's it like financial condition competitors?

Organizational structure and management of competitors?

How effective are competitors' marketing programs?

What is the likely reaction of competitors to your company's marketing program?

At what stage of the life cycle are your product and your competitor’s product?

Simply put, you must know everything about your competitors and this information must be reliable.

The analysis examines:

MARKET.

Define market segments.

How do your competitors typically enter the market?

What are the priorities of your competitors in this market?

How flexible is their market strategy?

How do your competitors react to the possibility of market diversification (diversification is the dispersion of capital between different investment objects in order to reduce economic risks)?

PRODUCT goods and services (quality, prestige trademark, packaging, service life, warranty period, level of after-sales service, technical specifications, style, reliability, ease of use, versatility, size, etc.);

To what extent are they responsive to customer requirements?

How are stimulation methods used?

How are they trying to increase their market share?

How wide is the range of products and services?

How much flexibility do they have? production systems?

Are lice competitors developing new products?

How flexible are your competitors in monitoring the compliance of their production capacity market conditions

PRICES price (list price, terms of discounts, amount of discounts, payment terms, payment terms, etc.);

What are the pricing methods?

Which pricing policy adhere?

PROMOTION OF THE PRODUCT ON THE MARKET promotion (advertising, PR, sales promotion, personal selling).

What types of sales divisions and services do competitors have?

How closely are the activities of competitors’ sales services integrated with the enterprise’s strategy in the field of advertising its products, and the strategy for developing sales potential?

SALES AND DISTRIBUTION ORGANIZATION distribution channels (availability of goods delivery, networks of regional warehouses, intermediaries, market coverage by distribution channels, etc.);

What sales strategy did your competitors follow to reach this market?

Indicate what forms of distribution do competitors use and prefer to use?

How are distribution channels controlled?

Competitor research not only gives a company an idea of the market it operates in, but also allows it to compare its own performance with that of its competitors. Such a comparison is very useful because it gives the company the opportunity to determine in which areas it should focus its efforts and resources in order to achieve an advantage over its competitors or close its gap with them.

Analysis of the characteristics of competitors and comparison of them with the corresponding characteristics of the company is usually carried out according to five main groups of parameters:

Achieving success by a company is associated with constantly maintaining high competitiveness. Competitiveness is not an absolute value. It consists of a complex of the above parameters, each of which is taken in comparison with similar parameters of competitors. High competitiveness is ensured by constantly being ahead of competitors: in introducing new products to the market, in the level of customer service, reducing production costs, introducing new marketing techniques, etc. For Internet companies, it is important to be ahead of competitors in such areas as ease of payment for goods (used payment systems), speed of order processing and delivery of goods, ease of site navigation, site design, development and implementation of new techniques for attracting and retaining visitors, etc. To do this, the company must constantly be aware of the state of affairs of its main competitors.

The study of the competitive environment should be continuous and reflect not only the current state of affairs, but also emerging trends. The company should use trend analysis of data obtained as a result of such research to predict changes in the competitive environment and plan responses to possible changes in advance. adverse changes situations.

The final stage is comparative analysis competitors. Its main goal is to identify the strongest and weakest competitors and choose a strategy in relation to certain competitors in order to neutralize them.

To conduct a comparative analysis, the most often used method is to evaluate several parameters using a point system. In practice, it looks like this: certain indicators are ranked according to a five-point school, where “5” is excellent, “4” is good, etc.

The main factors that are usually identified in comparative analysis:

enterprise image;

concept of main products/services;

product quality;

level of diversification of business types;

total market share of the main types of business;

capacity of the production base, incl. number of employees, availability of fixed assets, their level and efficiency of use, cost structure, etc.

financial indicators;

market price of products/services, taking into account possible discounts or markups;

the effectiveness of sales and activities to promote goods/services and in terms of the distribution channels used;

company's foreign policy business environment etc.

It is advisable to present the collected information in the form of a table, where it is recommended to include ranked information on own company, in order to determine its place in a competitive environment.

A convenient tool for comparing the capabilities of an enterprise and its main competitors is the construction of “competitiveness polygons,” which are a graphical display of assessments of the position of the enterprise and competitors in the most significant areas of activity, depicted as vector axes.

By depicting “competitiveness polygons” for different companies in one figure, it is easy to analyze the level of their competitiveness based on various factors. It is also possible to construct a “competitiveness polygon” for competing products and marketing activities competing firms in general.

Based on the analysis of the obtained estimates, strong and weaknesses competition in all studied areas of competitiveness. Next, measures are developed to consolidate strengths and eliminate weak points. 3. Study of the competitiveness of the company as a whole

Studying the positions and capabilities of competing firms in general involves searching for answers to four main groups of questions around which the structure of a competition monitoring system is built:

1. What are the main goals of the competitor?

2. What are the current strategies to achieve these goals?

3. What means do competitors have to implement their strategies?

4. What are their likely future strategies?

Answers to the first three sets of questions should provide input for anticipating future strategies. Analysis of the totality of information in these four areas provides a fairly complete picture of the actions of competitors.

In essence, the conversation is about collecting and analyzing information about the potential of competing firms and the level of its use. This refers to such components of potential as financial and economic, production, scientific and technical, personnel, organizational and lobbying, and marketing.

From the point of view of the performance of competing firms in the market and their gaining strong positions there, the following main factors that require study can be identified:

1 Company image

2. The product concept on which the company's activities are based.

3. The quality of products, their level of compliance with world standards (usually determined through surveys or comparative tests).

4. Level of diversification of production and economic activities (types of business), diversity of product range.

5. Total market share of the main types of business.

6. The power of the research and design base, which characterizes the capabilities for developing new products (size of the R&D budget, number of employees, equipment with objects and means of labor, R&D efficiency).

7. The capacity of the production base, which characterizes the ability to adapt to the production of new products and increase the volume of output of developed products (number of employees, equipment with fixed assets, their level and efficiency of use, cost structure, including the use of saving factors depending on the volume and development of output) .

8. Finance, both your own and attracted from outside.

9. Market price taking into account possible discounts or markups.

10. Frequency and depth of marketing research conducted, their budget.

11. Pre-sale preparation, which indicates the company’s ability to attract and retain consumers by better satisfying their needs.

12. Sales efficiency in terms of the distribution channels used.

13. Level of sales promotion (employees of the enterprise’s sales services, trade organizations and consumers).

15. Level of after-sales service.

16. The company’s policy in the external business environment, characterizing the company’s ability to positively manage its relations with state and local authorities, public organizations, press, population, etc.

This questionnaire indicates only the most important areas of research into the activities of competing firms. The list of questions can be detailed and supplemented by questions to study the competitiveness of goods and the effectiveness of marketing activities. It is advisable to present the collected information in the form of a table. 1, but with corresponding indicators.

Assessing a company's capabilities allows us to construct a competitiveness polygon (Fig. 2). For each axis, to display the level of values of each of the studied factors (in the polygon of Fig. 2, the assessment was carried out only for 8 factors), a certain measurement scale is used (very often in the form points). By depicting competitiveness polygons for different firms in one figure, it is easy to analyze the level of their competitiveness based on various factors. Obviously, it is possible to construct a competitiveness polygon also for competing products and the marketing activities of competing firms in general.

Rice. 2. Polygon of competitiveness

The disadvantage of this approach is the lack of predictive information regarding the extent to which a particular competing company is able to improve its performance.

Estimates of the above factors allow us to proceed to the analysis individual directions business and product portfolio of competing firms using the BCG or General Electric matrix method.

The appearance of the BCG model or matrix was the logical conclusion of one research work, conducted at one time by specialists from the Boston Consulting Group in the field of strategic planning. The BCG matrix is based on a product life cycle model, according to which a product goes through four stages in its development: market entry (problem product), growth (star product), maturity (cash cow product). ) and decline (product “dog”).

To assess competitiveness individual species business in the BCG matrix two criteria are used: the growth rate of the industry market; relative market share. Pace market growth is defined as the weighted average of the growth rates of various market segments in which the enterprise operates, or is taken equal to the growth rate of the gross national product. Industry growth rates of 10% or more are considered high. Relative market share is determined by dividing the market share of the business in question by the market share of the largest competitor.

A market share value of 1 separates market leader products from followers. Thus, types of business (individual products) are divided into four different groups:

Example 1: If a business unit owns 10% of a market in which the largest competitor has a 20% share, then the relative share of this business will be 0.5 (10/20).

The BCG matrix is based on two assumptions:

A business with a significant market share gains a competitive strategic advantage in terms of production costs as a result of the experience effect. It follows that the largest competitor has the highest profitability when selling at market prices and for him financial flows are maximum.

Presence in a growing market means an increased need for financial resources ah for your development, i.e. renovation and expansion of production, intensive advertising, etc. If the market growth rate is low, such as a mature market, then the product does not require significant financing.

In the case when both hypotheses are fulfilled, four groups of product markets can be distinguished, corresponding to different priority strategic goals and financial needs:

"Challenges" (high growth/low share): Products in this group may be very promising as the market expands, but require significant capital to maintain growth. In relation to this group of products, it is necessary to decide: to increase the market share of these products or to stop financing them.

Stars (fast growth/high share) are market leaders. They generate significant profits due to their competitiveness, but also require financing to maintain a high share of a dynamic market.

"Cash cows" (slow growth/high share): goods that can bring more profit than is necessary to maintain their growth. They are the main source of funds for diversification and scientific research. Priority strategic goal- "harvest."

Dogs (slow growth/low share) are products that are at a cost disadvantage and have no growth opportunities. Preserving such goods involves significant financial expenses with little chance of improvement. The priority strategy is to stop investing and live modestly.

Ideally, a balanced product portfolio of an enterprise should include 2-3 products – “cows”, 1-2 – “Stars”, several “problems” as a foundation for the future and, possibly, a small number of products – “dogs”. An excess of aging goods (“dogs”) indicates the danger of a recession, even if the current performance of the enterprise is relatively good. An oversupply of new products can lead to financial difficulties.

In a dynamic corporate portfolio, the following development trajectories (scenarios) are distinguished:

"Product trajectory". By investing in R&D funds received from "cash cows", the company enters the market with a fundamentally new product, which takes the place of the star.

"Follower Trajectory". Funds from cash cows are invested in a “problem” product whose market is dominated by the leader. The company pursues an aggressive strategy to increase market share, and the “problem” product turns into a “star.”

"Trajectory of Failure" Due to insufficient investment, the star product loses its leading position in the market and becomes a “problem” product.

"The trajectory of mediocrity." The “problem” product fails to increase its market share, and it enters the next stage (the “dog” product).

The BCG matrix helps to perform two functions: making decisions about intended positions in the market and distributing strategic funds between different business areas in the future.

Among the advantages of the BCG matrix as a tool strategic management First of all, it is worth noting its simplicity. The matrix is very useful when choosing between different agricultural sectors, determining strategic positions and when allocating resources for the near future.

However, due to its simplicity, the BCG matrix has two significant disadvantages:

all SZHs, the situation in which the company is analyzed using the BCG matrix, must be in the same phase of life cycle development;

within the agricultural sector, competition should proceed in such a way that the indicators used are sufficient to determine the strength of the company’s competitive position.

If the first flaw is fatal, i.e. SZHs located at different stages of the life cycle cannot be analyzed using this matrix, then the second drawback can well be eliminated. In the process of improving the BCG matrix, the authors proposed completely different indicators. The main ones are presented in Table 2.

Table 2. Indicators for assessing the strategic position using the BCG matrix.

The indicator of a company's future competitiveness in the market is determined by the ratio of the expected return on capital and the optimal (or basic) return on capital. In fact, this is the company's predicted return on equity or an analysis of the trend in this indicator in recent years.

In general, the attractiveness of SZH can be calculated based on the ratio:

Attractiveness of SZH = aG + bP + cO – dT,

where a, b, c and d are the coefficients of the relative contribution of each factor (the total is 1.0),

G – market growth prospects,

P – prospects for profitability in the market,

O – positive influences from environment,

T – negative impacts from the environment.

Based on the results of research conducted in the considered areas of studying competitiveness, a comparative analysis of the level of individual attributes (parameters) achieved by competing firms is carried out.

Based on the analysis of the obtained assessments, the strengths and weaknesses of competition in all studied areas of competitiveness are identified. Next, measures are developed to consolidate strengths and eliminate weaknesses.

Competitor analysis is a rather complex process, and it is not always possible to carry it out on your own, as it requires not only knowledge and time, but also special personnel, which is not always possible for small companies.

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