Competitive Strategies: How Companies Can Get the Golden Ticket
Posted: Wed Jan 22, 2025 5:33 am
What is it? Competitive strategies are long-term action plans for companies. They allow them to differentiate themselves from other market players by choosing one of their competitive advantages.
What are they? The classic division was proposed by Porter: cost reduction, differentiation, focus. However, there are other competitive strategies. You can always choose a ready-made solution, develop your own development path or combine options.
The article explains:
What is competitive cash app database strategy
Porter's Competitive Strategy "Cost Leadership"
Competitive strategy according to Porter "Broad differentiation"
Porter's Competitive Focus Strategy
Other competitive strategies
Selecting a competitive strategy
The procedure for developing your own competitive strategy
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
What is competitive strategy
Competitive strategy (competition strategy, competitive action strategy) is a stable behavior model successfully applied in practice in many companies. Company managers follow certain rules to gain an advantage over competitors and remain leaders for a long time.
The essence of the competition strategy is to win the most advantageous and most stable position in the area to which the company is directly related. In addition, the enterprise will be able to maximize its income in the current market conditions.
A competitive advantage strategy should be developed already at the initial stage of business development. It will help to choose the most successful line of behavior among competitors. The company must follow the planned strategy and be guided by it in the process of doing business and actively cooperating with other market participants. The importance of strictly following the established rules of competition is as great as compliance with the requirements of marketing or financial policy.
The company's competitive strategies are developed by experienced top managers. Their task is to create an activity plan that will make the business as successful and profitable as possible, and will bring the company to a leading position. Strategies must be successfully implemented with the help of a management system, business process organization, and corporate culture.
What is competitive strategy
The world learned about competitive strategy in the late 1970s thanks to Michael Eugene Porter. He is an American economist, professor of business administration at Harvard Business School, and a recognized expert in the study of economic rivalry, including in international markets, between countries and regions. His scientific works formulated a comprehensive concept of competition as an object of strategic management. It was Porter who created the first classification of types of competitive strategies.
Professor Porter conducted research and discovered an interesting pattern. Those companies that became leaders among competitors and achieved decent profits adhered to one of three types of strategies:
They became leaders in terms of costs, and then reduced the cost of mass-market products.
They adhered to product differentiation, making them especially valuable for the general user.
They focused on one market segment and then achieved cost leadership or differentiated themselves.
More details about this can be found in Michael Porter's work "Competitive Strategies", published in 1980. Many consider this man a real genius, and his monographs and articles are studied in economic departments at the most prestigious universities. His theory is absolutely logical. The competitive strategy of an enterprise must be clearly defined. Otherwise, any tricks of the management will not retain consumers looking for a unique product or a low price for it. You can concentrate sales of a product on a certain consumer group, but if this strategy is excluded by
What are they? The classic division was proposed by Porter: cost reduction, differentiation, focus. However, there are other competitive strategies. You can always choose a ready-made solution, develop your own development path or combine options.
The article explains:
What is competitive cash app database strategy
Porter's Competitive Strategy "Cost Leadership"
Competitive strategy according to Porter "Broad differentiation"
Porter's Competitive Focus Strategy
Other competitive strategies
Selecting a competitive strategy
The procedure for developing your own competitive strategy
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
What is competitive strategy
Competitive strategy (competition strategy, competitive action strategy) is a stable behavior model successfully applied in practice in many companies. Company managers follow certain rules to gain an advantage over competitors and remain leaders for a long time.
The essence of the competition strategy is to win the most advantageous and most stable position in the area to which the company is directly related. In addition, the enterprise will be able to maximize its income in the current market conditions.
A competitive advantage strategy should be developed already at the initial stage of business development. It will help to choose the most successful line of behavior among competitors. The company must follow the planned strategy and be guided by it in the process of doing business and actively cooperating with other market participants. The importance of strictly following the established rules of competition is as great as compliance with the requirements of marketing or financial policy.
The company's competitive strategies are developed by experienced top managers. Their task is to create an activity plan that will make the business as successful and profitable as possible, and will bring the company to a leading position. Strategies must be successfully implemented with the help of a management system, business process organization, and corporate culture.
What is competitive strategy
The world learned about competitive strategy in the late 1970s thanks to Michael Eugene Porter. He is an American economist, professor of business administration at Harvard Business School, and a recognized expert in the study of economic rivalry, including in international markets, between countries and regions. His scientific works formulated a comprehensive concept of competition as an object of strategic management. It was Porter who created the first classification of types of competitive strategies.
Professor Porter conducted research and discovered an interesting pattern. Those companies that became leaders among competitors and achieved decent profits adhered to one of three types of strategies:
They became leaders in terms of costs, and then reduced the cost of mass-market products.
They adhered to product differentiation, making them especially valuable for the general user.
They focused on one market segment and then achieved cost leadership or differentiated themselves.
More details about this can be found in Michael Porter's work "Competitive Strategies", published in 1980. Many consider this man a real genius, and his monographs and articles are studied in economic departments at the most prestigious universities. His theory is absolutely logical. The competitive strategy of an enterprise must be clearly defined. Otherwise, any tricks of the management will not retain consumers looking for a unique product or a low price for it. You can concentrate sales of a product on a certain consumer group, but if this strategy is excluded by