Expanded Summary

As a business cannot exist without a market, it is also impossible to imagine a market without competition. The main subject in each competition is resources- information, finances, technology, etc. However, the most important is the customer (“Client”) itself, without whom competition could not exist.

Competitive strategy includes several factors that are essential for a business’s success such as competitive pricing and quality, customer value for products (services), the professionalism of the employees and a well-established image, business experience and reputation, credit history and a relevant level of management culture, etc.

To be competitive, one would need relevant information and experience. Business development concept should be drafted - “comparative competitive strategy”, related to the search and study of modern methods of business management and their implementation. This practice is called Benchmarking.

Any type of benchmarking means measuring competitor’s metrics and business processes to draft the perfect model for your own business. The benchmarking process allows a company to focus on best practices from competitors and apply it to their business needs.

The first stage when entering a competitive market is the study of competitors. Who is the immediate competitor? Who is the indirect competitor (producer of substitute goods)? The best way to do this is to become competitors' client - buy their goods, use their services, experience the pros and cons.

Recommendations for monitoring competitors are as follows:

1. Always keep an up-to-date list of competitor companies. Make an additional list of which ones interest you the most. For example, you have a furniture business. The main focus for you is its realization;

2. Periodically collect information about the names of competitor companies. Also, if you stumble upon names and surnames of employees in top management, gather information about them as well;

3. Gather information on competitors' mailings;

4. Enroll in business forums where competitors participate;

5. Regularly monitor mass media, web portals and Facebook pages;

6. Fill out various forms of queries on competitors' websites, so you can keep track of their operations, service levels and quality of service.

Suppose the firm has identified key competitors, selected distribution channels and marketing plans for target audience. This is a strategy group that you should attack vigorously.

In the nineties of the 20th century, the famous Japanese firm Honda, a manufacturer of motorcycles and motorcycles, invested heavily in the construction of a new factory in the United States. Therefore, it temporarily reduced the output of the product to the local market. Its competitor, Yamaha, thought it was the perfect time to launch a new model series of motorcycles on the market, as well as an active advertising campaign.

Despite the difficult financial situation, Honda's top management responded immediately to this challenge. It reduced the amount of FDI, directed it to the local market and launched a new motorcycle model every month for a year. As a result, Yamaha was unable to withstand the competitive struggle and forced to leave this market segment.

To develop an effective competitive strategy, we need to get the most information about our competition. We need to continuously monitor our products/services, pricing dynamics, key incentive channels with competitors' similar products, identifying competitive advantages or disadvantages.

When identifying key competitors, marketers should find answers to the following questions: What is the competitor's goal? What is its behavior on the market? After that, the company must decide whether to attack or, on the contrary, protect the market segment. If a competitor adopts a new segment, this can be considered a good opportunity to launch an attack. And if you find that a competitor is trying to get into your segment, you should switch to a defensive strategy. "Whoever is informed - he is armed." Every market player responds in a unique way to the competitor's response. Some slowly and weakly, some immediately.