This allows us to identify whether it has any advantages over the main competing firms in the industry.
Determining the organization's positioning in the market
This stage helps to determine the organization’s potential to maintain or gain competitive advantages in various areas, namely:
consumer characteristics of goods and services;
providing customers with after-sales or additional service;
offering customers special conditions, payment deferrals, etc.
selling products at a price below the average market price;
Competitive analysis
It is always important to rcs database remember that rival companies do not sit still, but also develop and implement new strategies, seek and implement opportunities to gain advantages. That is why it is important to constantly analyze their activities for past periods of time in order to make forecasts of their future actions and possible reactions to the actions of other market participants.
The development of an organization's management strategy involves taking into account the following factors:
methods of competitive struggle used by rival firms in the industry (price wars, discounts, gifts, promotions, special conditions for purchase, additional services, etc.);
methods of struggle that market participants may begin to use in the long term.
At this stage, after the analysis has been carried out, a system of measures is developed to counter the actions of competitors. For example:
offers to potential clients that competing firms do not have;
development of new market segments;
reduction of production costs in order to reduce the segment price of products;
strengthening and developing partnerships with the target audience, as well as with suppliers of materials and raw materials;
establishing interaction with major competing companies in order to maintain market balance.
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Detailed audit of the company's current activities
At this stage, the company’s current position on the market is examined, its strengths and weaknesses are identified, which have a direct impact on the pace and scale of its development.
The two most popular methodologies for conducting such research are:
SWOT;
PEST analysis.
In addition to assessing the current state of the company, it is important to make a forecast for future periods. When preparing them, it is important to take into account the influence of external factors, namely:
the transition of some current customers to the consumption of similar products from competing companies;
copying of goods and services by other market participants, as well as the use of the same strategies and tactics in their activities;
increase in costs;
decrease in profitability;
a decrease in the market price of similar products due to the development and improvement of technologies used in production;
decrease in purchasing power under the influence of economic and political factors;
reduction of the total volume of the sales market.