Market analysis of competition in the industry. Research of competition in the market What gives competition in the market

Keywords

HIGH-TECH PRODUCTS MARKET/ COMPETITION / COMPETITIVENESS/ MARKETING / HIGH TECH/ NEW / CLASSIFICATION OF INDUSTRIES / HIGH-TECH MARKETING / TECHNOLOGICAL UNCERTAINTY

annotation scientific article on economics and business, author of scientific work - Derunova Elena Anatolyevna, Volkov Andrey Timofeevich, Sterkhova Svetlana Aleksandrovna

The article analyzes the differences in innovations in marketing activities and marketing of a high-tech product. Considered questions of types high technology in terms of their classification when competing in the market of high-tech products. Technology types are classified based on production performance and product performance. The strengths and weaknesses of each classification are given. The general scheme of marketing plan for high - tech products depending on the type of innovations is proposed . Marketing is divided into three levels: strategic, functional and tactical. The variety of needs of the consumer of high-tech products is systematized, such as: variability of consumer demands and consumer fear, anxiety about unforeseen consequences or side effects, incompatibility of technological standards for new products, continuity of generations of equipment, rapid and unpredictable development of technologies, competitiveness(appearance of substitute products, new competitors), growth or decrease in income and other marketing disturbing deviations. Proposed approaches to the penetration and dissemination of innovations among the largest, but the poorest socio-economic group of the population, the so-called marketing of the "base of the pyramid". The interaction between the structural divisions of the company in the course of introducing a high-tech product to the market is revealed.

COMPETITION IN THE HIGH TECHNOLOGY MARKETPLACE

The article looks at the difference between marketing innovations and high-technology product marketing, as well as the classification of high technology types competing in the high-technology marketplace. The types of technologies are classified according to the performance index and the product index, the advantages and disadvantages of each of the technologies are given. The author also suggests the general high-technology product marketing plan in accordance with the innovation type, with the latter (marketing) having three levels: strategic, functional and tactical levels. The author classifies the diversity of high-technology product consumer demands such as the variability of consumer demand and consumer apprehension, concern about the unpredictable consequences and side effects, the incompatibility of technical standards for new products, the continuity of the generations of equipment, booming and unpredictable technology development, competitiveness (the launch of substitute products, new competitors, the growth and the falling of profit and other marketing disturbing deviations). The author suggests the approaches to the distribution of innovations among the largest but the poorest socio-economic population group the so called “base of the pyramid” marketing. The cooperation between company departments while launching the high-technology product is described.

There are five levels of competition. To determine the level of competition in your city or region, you must:

study the territory in which you plan to do business;
make a list of competitors;
find out the strategy of attracting customers by competitors.

What are the levels of competition

High level of competition characteristic of a mature market in which developed enterprises operate. The standard of living of the population in such a market is high, so the quality of the goods offered is the best. Great value has a service level. Markets with a high level of competition offer a wide range of products - from economy class to high-end. The competition in this market is high. Marketing and promotions very diverse, companies take an integrated approach. The market with above average level of competition.

Average level competition is typical for emerging markets. Buyers Prefer high quality goods and services, a fairly wide range, the ability to choose prices and quality are important for them. In a market with an average level of competition, there are mainly price arguments. Unfair competition is quite common. As soon as a strong player appears in such a market in the form of a powerful federal network the situation may change for the better.

The level of competition is "below average" also characteristic of emerging markets. The standard of living of the population for such markets is below average. The population cannot afford any excesses. For such buyers, the best price-quality ratio is very important. To stand out from competitors, companies are dumping, offering all kinds of discounts that incur losses to partners. Unfair practices are also possible.

Market with low level of competition completely undeveloped in terms of progress. As a rule, in the area of such economic relations the poor population lives, which cannot make any demands on the quality of the product and its assortment. Everything on the counter is on sale at short time because there is no alternative. In such a situation, the consumer does not pay attention not only to quality, but also to the price. There is unfair competition, high criminalization of the market.

How does the size of a settlement affect the level of competition?

The locality in which you are going to work can tell a lot about the competition and the possible struggle for a leading position in the market.

High level of competition and above average, usually typical for large cities and regions. For example, these are Moscow and the Moscow region, St. Petersburg and the Leningrad region, Krasnoyarsk, Novosibirsk, Yekaterinburg, etc. More than a million people live in such settlements, the infrastructure is highly developed. All novelties reach such cities in the first place. Salaries and incomes of the population are quite high.

Average level of competition characteristic of cities of medium size. The number of inhabitants in such settlements is from 150 thousand to 1 million people. The main condition for such a city is the presence of a city-forming enterprise, which employs most of the population and has decent salaries. The income of the population in such cities is lower than in large cities, but incomes are sufficient to create high demand. Active actions businessmen allow to conduct a civilized competition, improving the methods and means of PR and promotion.

Below average competition typical for small towns in which there is no city-forming enterprise. A small city, an average city, an urban-type settlement or a suburban area - these territories are not always interesting for business representatives, since it is very problematic to trade here. The number of people living in such an area is less than 100 thousand people, but more than 20-25 thousand. Not everyone here can make large purchases, the solvency of the population is quite low. But in such settlements, there is often a high activity of entrepreneurs from among the local residents.

Territory with low level of competition- countryside. The incomes of the inhabitants here are low, with average and high incomes received by less than 5-6 percent of the total population. Farmers and owners of large farms receive very low incomes, as investments are constantly required for the next harvest or livestock breeding season. It is impossible to sell expensive quality goods here for the reason low income consumers and also because it so happened historically that the population of villages goes to make large purchases in central cities.

How to choose competitors for analysis

After you have decided on the territory where you will do business, select organizations that offer goods and services similar to yours (in terms of characteristics, quality, satisfaction of needs) in the same market segments. Entrepreneurs often make two mistakes. In the first case, the list of competitors is too small or the company is generally sure that there are no competitors. Such a decision can lead to a loss of vigilance, and you will not have time to notice how competitors will take the lead. In the second case, the list of competitors is too large, and it is simply impossible to study all the companies included in it. Therefore, it is worth striving to ensure that the list includes 5-10 main rivals, depending on the specifics of the activity.

For example, when choosing competitors, you can focus on companies that set trends in the development of the segment. Such organizations often anticipate the wishes and interests of potential clients, and attract the best people through reputation and image.

How to figure out a competitor's customer acquisition strategy

Who are the competitor's buyers? It is necessary to determine the target audience of a competitor - in which price segment it operates. So, if you plan to enter the b2b market, then you can find out this information using the sections that describe the activities of a competitor and give a list of large and significant customers.

What are the terms of sale (prices, discounts). Find out what conditions the competitor offers to new and existing customers. Assess the risk of losing customers if a competitor's offer is more profitable. Analyze if the company can offer more attractive terms. Find out if the competitor promotes its products through agents (independent or with distribution networks), and under what conditions it cooperates with them. You can evaluate this by surveying competitor employees - contact them as a potential client.

Does the competitor have a trademark? Find out if the competitor has their own trademark (an important competitive advantage, as it promotes product recognition). Examine the range of products manufactured under a competitor's trademark. You can find out about a trademark through the registers of Rospatent and.

Does the competitor have a license? A company that has a license looks reliable in the eyes of buyers (i.e. this is a competitive advantage).

What kind of advertising does the competitor give? Analyze what types of advertising the competitor uses, how actively, what advantages of products (services) he focuses on. Find out whether the recognition of products (services) among specialists and customers has increased after advertising campaigns.

Porter's five-factor model for analyzing the level of competition

To assess the level of competition, you can use Porter's Five Forces Analysis, a technique developed by Michael Porter at Harvard Business School. The five powers include:

analysis of the threat of the emergence of substitute products;
analysis of the threat of the emergence of new players;
analysis of the market power of suppliers;
analysis of market power of consumers;
analysis of the level of competition.

When opening a company, one factor can be assessed - the level of competition.

An example of the analysis of the level of competition

To assess the level of competition, the head of Alfa evaluated four parameters. The results are presented in the table.

Table. Analysis of the level of competition

Parameter	Evaluation score
Parameter	1	2	3
Number of competitors	Low level - 1 to 3 participants	Intermediate level - from 3 to 10 participants	High level - more than 10 participants
Number of competitors		2
The degree of product differentiation in the market	Products of enterprises differ significantly from each other	A standard product on the market has additional benefits	Businesses sell a standard product
The degree of product differentiation in the market		2
Market Volume Growth Rate	High	Average	Market stagnation
Market Volume Growth Rate		2
Restriction in price growth	Loyal price competition, there is room for price increases to cover costs and increase profits	Ability to raise prices to cover rising costs	Fierce price competition, no price increase possible
Restriction in price growth	1
Total	7 points

Interpretation of results:

4 points - low level of competition;
5–8 points – average level of competition;
9–12 points – high level of competition.

Alfa has a total score of 7 points. Thus, the level of competition can be characterized as average.

In the 19th century, a small funeral home operated and flourished in Kansas City. But one day, not too joyful, its owner Almon Strowger calculated his income for the last months and found that the turnover was falling, but his main competitor, on the contrary, increased sales.

A small investigation showed that the fact is that the most prosperous clients have already begun to use telephones, and in the event of the death of a relative, they called the telephone exchange, where the wife of Strowger's main competitor worked. When she was asked to be connected to a ritual agency, of course, she redirected everyone to her own spouse.

This is a story about unfair competition. And it could have ended differently. Having calculated the losses, the entrepreneur could well close his own agency or kill the telephone operator in a fit of rage. But Almon Strowger acted differently: when complaints to the station's authorities failed, he focused on creating a mechanism that would replace manual labor. So in 1892 the first automatic telephone exchange was invented and patented, which the creator himself called "a telephone without young ladies and curses."

Such is it, many-sided competition! It can serve as an engine of progress, or, on the contrary, it can become the cause of cruel crimes. And in order to form your own opinion, whether competition is useful to society or dangerous to it, you will have to understand in detail the nature of this phenomenon. Shall we start?

Competition -what is it in simple words

For the first time the word "competition", borrowed from the German "konkurrieren", was recorded in the Russian dictionary in 1878. The term originates from two Latin words:

con - together;
currere - to run.

Thus, competition is the rivalry of several subjects in order to achieve one goal. Moreover, the successes of one always mean losses for the other. Biologists consider competition to be the driving force of evolution: it is thanks to it that the most adapted representatives of flora and fauna are preserved on the planet, and the weakest gradually die out.

Economists characterize competition as a struggle between companies. Each of them defends its own interests: it tries by any means to attract the attention of buyers, sell as many goods and services as possible and, as a result, get the maximum profit.

Interestingly, the word "competition" has the same roots as "competition". But in this case we are talking not about the constant struggle for the buyer, but about the desire to achieve victory in the competition.

Competition as an economic law

For the first time, mankind encountered the phenomenon of economic competition in ancient times, under conditions of simple commodity production. Already in primitive society, each artisan sought to extract the maximum benefit for himself to the detriment of other participants in the market exchange.

With the emergence of the slave system, competition only intensified. The farms became larger, the labor of forced and hired workers made it possible to produce more and more, strengthening their position in society.

But only in the 18th century did Adam Smith, a Scottish economist and philosopher, become interested in competition as a phenomenon. He drew attention to the fact that there is a stable connection between rival companies. And he suggested that competition is not an accident, but an objectively acting force that actively influences not only sellers and buyers, but also the development of the industry as a whole.

At the same time, 3 conditions necessary for the emergence of competition were formulated:

Complete economic independence of each manufacturer, in which each company acts solely to achieve its goals.
The dependence of each seller on the current situation in the market: the volume of supply and demand, the size wages, exchange rate. So, if the average salary of a sales assistant in Moscow is 40,000 rubles, the company can hardly count on finding, and most importantly, retaining an experienced, conscientious employee by offering him 25,000 rubles a month.
Lack of agreements with other manufacturers, that is, the struggle of all against all.

In such a situation, the manufacturer the only way to win - to fight for the improvement of the quality of the goods, to reduce their own costs, and after them the prices. This is how the law of competition works - an objective process of removing expensive low-quality products from the market. The essence of the law is revealed more fully through the functions that competition performs in the economy.

Functions of competition in the economy

In a market economy, competition has 6 main functions:

1 Regulatory. In conditions of free competition, firms produce exactly as much product as the consumer needs. Equilibrium is not established immediately, the company comes to it after several months of work, analyzing the volume of demand and sales.

For example: the manufacturer of school desks made of natural wood "KIND" during the summer season sells 1500 - 1700 budget models "Novichok". If by June the company does not fulfill production plan to meet the demand, she will have to introduce additional shifts, urgently expand the staff, but still not every buyer will agree to wait for their purchase instead of the standard 3 days 2-3 weeks. Part of the profit will be lost. The reverse situation is also losing: excess production entails the need to expand storage facilities, and with them the overall costs of the enterprise.

Thus, competition in the market determines the amount of demand for the products of each firm, and establishes the optimal volume of production.

2 Allocation. Its name comes from the English "allocation" - "accommodation". And means that in competitive environment success is easier to achieve for enterprises that are located closest to production resources.

It is not for nothing that all hydroelectric power stations are located near large water sources, and the energy they produce supplies the nearby regions. It also makes no sense to install wind farms in the Moscow region, which belongs to the areas of the 1st, most windless, category. But the Krasnodar Territory, according to the wind map of Russia, has been assigned a coefficient of 6. And here the installation of wind power plants will be fully justified.

3 Innovative. The rapid development of technology in modern world is the result of competition. The easiest way to trace this process is through the evolution of mobile phones. Only 36 years have passed since the release of the first model intended for free sale - Dyna TAC 8000X. On the scale of science, this is quite a bit. But today a smartphone is already a full-fledged replacement for a camera and a game console, a player and a computer. And engineers are not going to stop: leading manufacturers present new products every six months.

4 Adaptive. This function lies in the ability of enterprises to adapt to the external environment, offering customers exactly what they expect. So, most grocery stores have either switched to a 24-hour work schedule, or close closer to midnight. This allows customers to buy products after work in a calm mode, and entrepreneurs to increase profits.

5 Distribution. The market is a living organism that is constantly changing. Every day, entrepreneurs assess the situation and decide for themselves whether it makes sense to further invest their own resources in existing projects or whether it is time to explore new horizons. So from low-income industries, where there are already a sufficient number of manufacturers or the demand for products is steadily falling, there is a constant outflow to more promising areas.

6 Controlling. In conditions of fair competition, no manufacturer or seller can take a dominant position in the market and become a monopolist.

Working together, all the functions of competition turn the industry into an efficient, self-regulating system. And the combination of competitive industries creates a more or less successful market economy. That is why competition is often called the engine of the market economy.

Advantages and disadvantages of competition in the market

For society as a whole, competition is a positive phenomenon. She:

stimulates the development of scientific and technological progress, thereby improving the quality of life of the population;
makes manufacturers respond quickly to consumer requests: expand the range, improve the quality of goods, look for ways to reduce costs;
forms fair market prices as opposed to the predatory pricing policy of monopolists;
prevents the development of shortages of goods and services.

And the main sign of the presence of free competition in most sectors of the state and an effective market economy as a whole is the increase in the middle class among the population.

There are also negative points in the competitive environment:

a huge temptation for many manufacturers to use "dirty" methods of dealing with competitors;
instability of the situation in the market of goods and services: out of 100 entrepreneurs, 95 burn out in the first couple of years of their activity;
a large number of ruined commodity producers provokes an increase in unemployment;
income is distributed unevenly among different social groups population.

Conditions for maintaining competition

Free competition is a very unstable market model. Entrepreneurs left to their own devices first take weak players out of the game. They leave due to lack of resources:

And then viable companies begin to negotiate among themselves: about holding prices and even merging. It is more profitable for firms economically than constantly developing technologies and looking for ways to reduce costs. But the buyer ends up with inflated prices and an artificially created shortage.

2 economy class hairdressing salons have opened in the residential area. But the first was opened by a student without initial capital, and the second was opened by an experienced businessman with sufficient capital, who knows well that a new business in the first months requires constant injections. At the same prices, the chances of surviving at a hairdressing salon owned by a student are minimal.

But a businessman can attract visitors with a bright opening, great comfort, for example, by immediately installing a TV. Later, he will send craftsmen to advanced training courses and offer new services, and maybe even poach the best workers from his competitor. In an effort to become a monopolist, for a limited period of time he can work even at a loss, which a student cannot afford. But after the competing barbershop goes bankrupt, you can already dictate your prices.

Thus, competition naturally always, sooner or later, leads to the emergence of a monopoly enterprise. And the only way to keep the rivalry between entrepreneurs is government intervention.

Only external deterrents can protect firms from each other and prevent manifestations of unfair competition. Therefore, all the developed powers of the world have adopted antitrust laws. And they actively use 2 main methods of protecting competition:

a ban on the creation of monopolies;
strict regulation of prices for products of natural monopolies, for example, fixed fares for public transport tickets.

State regulation of competition

For Russia, the issue of supporting competition is of particular importance. For many decades, our state has actively used the advantages large-scale production, its specialization and concentration. In fact, the entire industry was in the hands of monopoly enterprises.

And with the transition to a market economy, it was necessary to create a new legal framework that could support the emerging small and medium-sized businesses. The first such document was the Law of the RSFSR "On Competition and Restriction of Monopolistic Activities in Commodity Markets", adopted on March 22, 1991. In connection with the active development of the banking services market, on June 4, 1999, another legal act was approved - the Federal Law “On Protection of Competition in the Financial Services Market”.

In 2006, both regulations were replaced by the Federal Law “On Protection of Competition”. Moreover, the conduct of antimonopoly policy is also spelled out in the Constitution of the Russian Federation. Article 34 states unequivocally: “It is not allowed economic activity aimed at monopolization and unfair competition”.

Control over the implementation of the provisions of the Law is carried out:

Ministry of the Russian Federation for Antimonopoly Policy and Entrepreneurship Support;
its territorial divisions.

In order for the activity of an enterprise to be recognized as threatening free competition, the share of its products on the market for goods and services must be 65%. But there are exceptions: the antimonopoly committee can impose sanctions already with a share of 35%, if the company prevents new firms from entering the industry and dictates its conditions to competitors.

Participants of competitive relations

Participants of legal relations are called subjects by the legislation. In competition law, the main ones are:

sellers or business entities, that is, individual entrepreneurs and enterprises of all forms of ownership that carry out income-generating activities;
buyers of goods or services. For them, the Law does not prescribe duties, but acts precisely in their interests. In case of suspicion of violations of the antimonopoly law, buyers have the right to file a complaint with the territorial division of the antimonopoly committee.

The joint actions of buyers and sellers form supply and demand in the markets for goods and services. Under conditions of free competition, they balance naturally and set economically fair prices.

Other subjects can also influence competitive relations:

These entities are not involved in competition, but are in the field of view of the antimonopoly law, as they are able to provide individual companies with significant advantages: issue a license, finance, establish tax incentives. All this negatively affects other participants in the competitive struggle.

Interestingly, the circle of subjects of competition law includes not only already operating enterprises and real buyers, but also potential sellers and potential consumers:

a potential seller is one who is ready to start producing and/or selling a product within 1 year that is already on the market at a price not exceeding the average market price by more than 10%. At the same time, production costs will pay off within 12 months;
a potential buyer is one who is ready to purchase a product, but for some reason has not yet done so.

Since, in an effort to oust competitors, firms often combine their efforts, the Law defines another subject of competition law - a group of persons. They can be united by relations of any kind: labor or contractual, property or family.

Despite the fact that their actions are coordinated and aimed at achieving the same goal, in the framework of legal proceedings, the degree of participation of each person in a crime is considered individually.

Forms of competition

To stay within the bounds of the law, today it is not enough not to cross the 65% barrier of control over the industry. On October 5, 2015, Chapter 2.1 was introduced into the Federal Law “On Protection of Competition”. Unfair competition. And now the Antimonopoly Committee has the right to consider not only the degree of influence of the company, but also the methods of its struggle. Therefore, it is very important to understand the line where conscientious, socially approved, competition ceases to be such.

Fair competition - fair and legal methods of competition that do not conflict with generally accepted business practices:

Unfair competition - any actions of economic entities that are contrary to the law and business ethics and can cause harm business reputation competitors, inflicting financial damage on them.

Methods of unfair competition:

Types of competitive markets

Depending on the severity of competition between firms, there are 4 main types of the market for goods and services:

Perfect Competition, in which a huge number of firms operate in the industry, and there are no barriers for newcomers. A product in a perfectly competitive market is standardized. For example, each region has hundreds farms, which provide stores with eggs, milk, vegetables and fruits. Farmers cannot influence the price of their products in any way, and any landowner is able to enter the market without much effort.
Monopolistic competition- a market in which there are also a large number of sellers, and there are no barriers to entry into the industry. But the product in such a market has its own zest. For example, one publishing house publishes exclusively detective stories, another - women's novels, the third - non-fiction literature. The competition here is non-price, and advertising and brand awareness help to increase.
Oligopoly- a market represented by a small number of sellers, largely due to the fact that entry into the industry is difficult. For example, to produce household appliances, one desire is not enough. Significant financial investments, engineering developments, highly qualified personnel, permits from regulatory authorities, well-thought-out marketing strategy. Of course, few entrepreneurs are able to realize all this. Those who succeed become the few big players who can already influence pricing.
Absolute monopoly. The market is represented by one single seller, and entry into the industry is blocked. The monopolist himself determines the volume of output and has unlimited power over prices. Example: OAO Gazprom, OAO Russian Railways.

Thus, the weaker the competition in the market for goods or services, the more power the producer has. And vice versa, when there are many sellers, the buyer has the opportunity to choose the product that suits him as much as possible in terms of price and quality.

Video: Competition and its types

Types of competition in the economy

Economists combine all 4 market models into 2 large groups, highlighting:

perfect competition;
imperfect competition.

Perfect or pure competition- an ideal model, an abstraction that is very rare in real life. It is characterized by:

A very large number of vendors in the industry. They act independently of each other, each working in their own interests. So, there are a huge number of fishing enterprises in the world. And the largest of them account for approximately 0.0000107% of the world's catch. Even if one or several firms increase the catch several times, this will not affect the state of the industry in any way.
Standardized or homogeneous product. The product is similar or so similar that, by and large, it makes no difference to the buyer from which of the sellers to make a purchase. A striking example: currency exchangers.
The inability of the seller to influence the price of the goods. For example, if at the vegetable market 3 sellers at once set a price of 300 rubles for 500-gram baskets of strawberries, it makes no sense for the fourth one to demand 400 rubles. He simply will not sell the berries, and they will go bad. But lowering prices is also unprofitable if there is an opportunity to earn more. Thus, in a perfectly competitive market, the seller always takes the role of a price follower.
Free entry into and exit from the industry. New firms can enter a competitive market without serious financial opportunities or technological innovations. They are not hindered by legislative authorities, on the contrary, all information about doing business is freely available. Example: stall trade, the creation of construction and repair teams.

A situation in which one or more of the conditions for perfect competition is not met:

Although the product from different sellers belongs to the same group, it has its own characteristics. For example, one sells Golden apples, and the other sells Semerenko;
There are barriers to entry into the industry: for example, to open the most modest gym, you will need at least 1 million rubles. And this is not the amount that any potential entrepreneur can easily find;
There are already leaders in the industry. In this case, we are talking more about oligopolistic competition;
From the very beginning, the entrepreneur has the opportunity to influence the price of his products. For example, the same strawberry sellers in a small market may well agree on a single price. Or, using greenhouses, the farmer will achieve ripening of berries 2 weeks earlier, and will be able to sell his crop for much more.

Thus, imperfect competition is a market model that, to varying degrees, but allows sellers to influence the price of their products. And monopolistic competition, oligopoly, monopoly are just varieties of imperfect competition.

Types of competition by degree of freedom

The phrase "free competition" has long become stable. It implies that the activities of individual entrepreneurs are not influenced by either government agencies or larger and more influential market players.

In contrast to free competition, there is also regulated competition. It occurs when one or a few firms achieve a significant market share and are able to influence prices and prevent newcomers from entering the industry. The regulatory function in this case is performed by the state.

Types of competition by industry

Economics deals with market competition - the struggle of producers for each buyer. Demand in this market is limited by the solvency of consumers, and the struggle is carried out by all legal means: price and non-price.

Market competition is:

intra-industry:
intersectoral;
international.

Intra-industry competition- this is the rivalry between manufacturers or sellers working in the same industry. They produce or sell similar products that differ in price, model range, quality. Moreover, intra-industry competition can be:

subject;
specific.

Subject competition- one in which rival firms produce an identical product. It can only vary slightly in quality. Example: Russian manufacturers bed linen of the middle price category - "SailD", "MONA LIZA", "AMORE MIO".

Species competition- a type of rivalry in which companies produce goods of the same type: shoes, clothes, furniture, but at the same time it differs in some serious parameters. For example, the RIMAL shoe factory produces affordable children's shoes for absolutely healthy children, and the MEGA Orthopedic company specializes in tailoring orthopedic models.

Intersectoral or functional competition is the struggle of representatives of different industries. For example, residents of Moscow can get to Sochi as by rail, as well as by plane. The first is cheaper, the second saves time. But in general, both that and that transport help the traveler to achieve the goal.

Interethnic competition is the competitive struggle of two countries. Its goal can be not only the conquest of the largest possible market, but also prestige on the world stage. Example: confrontation between the US and the USSR in the field of space exploration.

Competition Methods

There are two ways to try to beat competitors: by lowering the price or by offering more attractive conditions, but at the same prices.

The first strategy is price competition. For example, a newly opened dry cleaner offers a 20 percent discount on their services. The business owner is well aware that in the future he will not be able to keep such a low price, but in the short term the strategy will provide a large influx of customers, and if they like the service, they are likely to contact again and again.

Good service is non-price competition, which most buyers value more than a lower price and possible discounts. Our subconscious perceives price reduction more aggressively, forcing meticulously to look for a catch. Methods of non-price competition (memorable advertising, convenient delivery terms, beautiful packaging, etc.) marketing ploys) seem more noble, although if you dig deeper, there is no difference.

For example, at the same prices for bottled water, the Aqua company will also offer free delivery. In terms of the price per liter of water for the buyer will be less. And non-price competition will be the most that neither is price.

Price competition is not always a short-term phenomenon. Thus, with the timely updating of equipment, improvement of the system and logistics, the manufacturer can really achieve a significant reduction in cost.

While maintaining the size of the trade margin and the achieved sales volume, the company's profit does not decrease, although for the end consumer the product will significantly fall in price. Competitors in such a situation have to either follow the more successful firm, or leave the market.

Competition outside economics

Competition as a competition for a good that is available in limited quantities is typical for politics and science, sports and military affairs, art and creativity. Perhaps there is not a single human activity in which it would be impossible for the emergence of a struggle for money, power, fame or respect.

Achieving the goal occurs with the help of competitive actions, a concept formulated by the American economist Michael Porter. It involves the commission of acts directly or indirectly addressed to competitors. Their goal is to strengthen their positions and at the same time weaken the opponent.

competition in biology

If in human society competition is rivalry, in the world of flora and fauna, the phenomenon is more likely to be synonymous with war. A war for a place to live, sources of food, a war for life itself.

There are two types of competition in biology:

Intraspecific competition. The most desperate and cruel, the struggle flares up between representatives of the same species. Birds fight to the death for the best nesting sites, walruses and seals win back a female for mating, and out of hundreds of young Christmas trees in a clearing, only 2-3 trees grow to adulthood. The rest die from lack of sunlight.
Interspecific competition flares up between individuals of different species. Moreover, the Russian biologist G.F. Gause proved that if 2 species with the same needs live in the same territory, the strongest will definitely crowd out the weakest. So, in Australia, the native bee, devoid of sting, has already been almost completely destroyed. And all because a few decades ago, a honey bee was introduced to the mainland.

Competition of norms in law

In legal practice, situations often occur when the same action is regulated by two different regulations. And the court will have to decide which of the two documents to apply. The competition of norms happens:

temporary, when the norms were in force at different periods of time;
spatial: for example, in different states of America, different punishments are provided for the same crime;
hierarchical: all normative documents have different legal force. Main legal act in our country - the Constitution of the Russian Federation, then there are Federal constitutional laws, after them federal laws etc.

But the most common competition of norms in law is substantive. The easiest way to explain it is with an example. Suppose a crime is committed with two aggravating circumstances. They are described by different articles of the Criminal Code. When determining punishment, the judge, as a rule, qualifies the crime according to the norm that provides for a more severe punishment. And, conversely, under two mitigating circumstances, the rule prescribing a more lenient punishment is applied.

Answers on questions

Competitive as spelled

The correct spelling is “competitive” (without the “n”). This word consists of two roots: "competition" - there is no "n" and "capable".

What is a competitor

A competitor is a person or group of persons, and it can also be a company or even a state, that competes with another person(s) for the right to own something or for any interests.

Conclusion

Competition is the driving force of evolution. It condemns the weak to extinction and allows the strongest to survive. It is thanks to her that more and more resistant strains of bacteria and viruses appear on the planet, which are not amenable to known antibiotics and antiviral drugs. Hundreds of animal species and thousands of plant species have become extinct in competition. But those that survived have managed to adapt to droughts and frosts, polluted air and the ubiquitous humanity.

In the economy, competition acts for the benefit of the consumer, forcing sellers to reduce prices and expand the range, manufacturers to improve the quality of goods and design new, even more advanced models.

Entrepreneurs fear competition and dislike it. Still would! It is impossible to relax even for one day, otherwise a more efficient comrade will grab a share of the profit. And yet, fair competition is the fairest struggle, which unmistakably defines the losers and those who have chosen the right strategy.

Roman Kozhin

The author of the blog "My Ruble", in the past the head of the credit department in the bank. In the present Internet entrepreneur, investor. I talk about how to effectively manage your money, how to increase it profitably, and earn more. Thanks to the Internet, he moved to the sea. You can follow my life in social networks using the links below.

Allocate next levels competition:

general competition, competition at the product class level. If the consumer needs to fill the salad, then for this he can choose, for example, mayonnaise, sour cream, butter;
competition at the product level. Competition at this level will mean that, having chosen, for example, mayonnaise, the consumer will choose between Provencal, light mayonnaise and mayonnaise with additives;

brand level competition- it's a choice between brands. The consumer can choose Calve, Ryaba, Sloboda, etc.

Brand competition is the most direct form of competition. The intensity of brand competition and the nature of competition are mainly determined by the market where the company operates.

Market types are the conditions in which a company sells its product. Of great importance here is the number of participants in the market and their size, as well as price elasticity, type of product, etc. Using these criteria, it is possible to distinguish between markets. We will consider only the main types of markets, using the following criteria:

the number of companies offering goods in this market;
type of goods offered (homogeneous or heterogeneous goods).

Pure competition market characterized by the following features:

a large number of buyers and sellers;
homogeneous products (the consumer perceives the products of different manufacturers as the same);
there are no barriers to market entry.

In such a market, the seller is faced with the problem of a fixed market price, which is the result of the free movement of supply and demand. Here the seller has no influence on this fixed price. If he offers goods at a higher price, they will not be sold, since we are dealing with homogeneous goods.

Oligopoly - a market in which there are so few sellers that their interdependence is very high, in such a market the actions of one supplier influence the actions of another. If the sellers at the same time offer homogeneous goods, then such interdependence is extremely strong. With a heterogeneous oligopoly, when consumers feel differences between the offers of different sellers, such dependence is not so strong and is similar to monopolistic competition. However, the price of oligopolistic market more stable: if one selling company changes the price for its own benefit, this will dramatically affect the sales of other market participants and their actions can be easily predicted. Therefore, price change is limited, but from time to time "price wars" still occur when the strongest want to eliminate weaker competitors. In a homogeneous oligopoly, as in the case of pure competition, suppliers cannot offer different prices.

Monopolistic competition. Pure competition, like a homogeneous oligopoly, is not very attractive to the seller, since it has little effect on selling prices and profits.

To avoid price competition, suppliers use product differentiation. It is possible to differentiate a product, for example, by changing the way it is advertised, the packaging, or the quality. Differentiation allows the supplier to win over a certain group of "dedicated" buyers who prefer this differentiated product. Then there is no need to lower the price to attract buyers, as they are willing to pay a higher price for the product that suits them best. Thus, by applying product differentiation, the seller finds himself in the position of a monopolist, but it must be remembered that if the price gap becomes too noticeable, the buyer can always switch to another product.

Monopoly. There is only one seller in this market. There is no brand or product competition here. The fact that the buyer has no choice, the product is unique and there is nothing to replace it, brings profit to the monopolist. The latter feels much more relaxed than sellers in other markets.

Michael Porter offers four matrices that allow a company to identify ways to create competitive advantage, opportunities to achieve competitive advantage, to develop competitive strategies and predicting the reaction of competitors to the actions of the company.

The most important component of the plan is an assessment of the markets for products (services) in conjunction with a description of the state of the industry, on the basis of which conclusions about the needs of the market that the company's products satisfy are justified. It is advisable to provide statistics on the sale of goods on the market, the classification of users and distributors, an assessment of the annually consumed products, in the second part of this section the world market can be considered, if the company's products claim a certain niche in it, in this part it is necessary to reflect the volume of sales of products, produced by the company, has been on the world market over the past five years, what factors affect this (legislation, politics, demographic situation), what measures need to be taken to increase the competitiveness of the organization's goods on the world market. The analysis of external influencing factors is also necessary for the analysis of the internal market.

Many Russian entrepreneurs underestimate the dangers of competition, so it is advisable to analyze this problem in a business plan, since even if a company is the only manufacturer and seller of a particular product in the industry, it still faces competitive forces; they can be new (potential) competitors entering the industry; competition from substitute goods, suppliers (sellers), customers (buyers) is possible. We must not forget that one of the most serious competitive forces at present in the domestic market is foreign companies, which attract the buyer, if not by quality, then by affordable prices and more catchy packaging and product design. These firms act harshly, guided by their own strategic goals. In competition with similar organizations, the head of the company should

We should resort to approaches proven in international practice, the basis of which is not only the development of strategies, but also specific management decisions. However, before embarking on planning their elements, it is necessary to think about how best to implement this strategy, whether reorganization is needed organizational structure enterprises (restructuring of business, production, attraction of new specialists, etc.), what should be financial structure necessary for the implementation of the strategy, whether to leave the traditional market; if it is supplemented by a new one, then which of them should be focused on; whether it is realistic to increase profits without changing the current competitive position of the firm. At the same time, it is impossible not to evaluate the possible response actions of competitors, as well as their probabilities.

Based on the foregoing, this section includes three paragraphs: the first section discusses the directions for conducting market and competition analysis, sources for obtaining the necessary information, the second, third and fourth contain a description of practical techniques that are advisable to use in the analysis.

Market research

The results of the market research are answers to a number of questions:

How large is the size of the market for the company's products or services;

Is this market growing, static or declining;

What is the market share of the company;

What potential market share can be achieved;

What needs to be done to increase market share;

Are there any obstacles to entering the market or expanding activities within it;

What resources and at what time are required to implement expansion plans;

What problems can arise in this case and how they can be prevented;

What alternative courses of action can lead to the achievement of the desired result;

Who are the main competitors of the company in the market and what do they offer;

What is the company's competitive position in the market?

What are the main needs of customers satisfied by the company's products;

What prices are offered by the main competitors and how do they affect the company's pricing policy?

It is not surprising that, faced with such an abundance of tasks, many directors and company owners come to the simplest solution - to respond to demand, rather than make forecasts and plans for the future, in order to follow them later, and in some cases there has been a decrease in interest in intra-company planning in in general and business planning in particular.

However, common sense dictates that the more a firm knows about customers and markets, the better chance it has of maximizing opportunity and minimizing risk, which in turn increases the chances of survival and growth for any business.

Summarizing the main aspects covered by the questions listed above, it is necessary to highlight four main areas: the size and nature of the market itself, the share that the company can acquire on it, competitors and their offers, the prospect of the company's own products or services in this market. These areas need more detailed research, and first of all, it is necessary to consider the main sources of information on the basis of which the firm can get answers to its questions.

As a rule, there is a wealth of data and research results about certain markets both internationally and nationally, provided by trade journals and associations of manufacturers and dealers, economic reports and analyses, national and regional statistics, etc. From these data, it is usually possible to determine not only the overall size and growth rate of a potential market, but also a realistic estimate of the relative share of its main participants.

For analysis, it is advisable to use only reliable and reliable information from officially published sources. However, at the local level, it is much more difficult to obtain the necessary specific data, and even at the regional level, information can be combined with data for other markets published in reports on economic development and presented in too general a way to be used by new small companies. Therefore, if published sources are inadequate and irrelevant, this should be noted in the business plan and should detail the alternative sources used and the reasons why they may be considered acceptable to the target market.

As part of conducting market research, it is very important to determine the share of the target market occupied by the firm. If the level of supply in a certain market does not reach its full saturation, then the share of the target market can be quite accurately determined by the volume of production and supply of products on the market. But if there is already strong competition in it, then the share of the target market segment may be significantly smaller, and at the same time there may be high barriers to entry into the market, which will require attracting significant investments, as well as high costs for the subsequent maintenance and expansion of the market share.

Undoubtedly, competitors will take a certain position in relation to a new market entrant and may enter into fierce competition with him in order to keep him out of the market. In fact, determining the share of the target market usually requires specific knowledge of the market sector to ensure that the choice of a particular market niche is reasonable and realistic. To penetrate the market and obtain the required share, certain knowledge of the sales model and distribution channels is also required.

The level of the target market influences the nature of competition. Thus, at the international and national levels, all major market players in the industrial or service sector tend to be well known to each other and often interact with each other on issues of common interest to them (for example, control over the provision of loans, lobbying for new bills, etc.). .P.). In those cases where there is no formal connection at the company level between rival organizations, an informal connection at the interpersonal level almost always remains. This may be the relationship between former colleagues who changed jobs, those who studied together in the past, between those who met at sales exhibitions or conferences. Indeed, it is difficult to overestimate the importance for business of informal communication and the knowledge about the market that can be collected and accumulated bit by bit using modern channels for organizing business interactions.

When it comes to products and services in the local market, someone who is completely new to it usually already has an idea of \u200b\u200bthe competitors and the products or services they offer.

More detailed technical information or a price list can be obtained by telephone inquiries or by presenting yourself as a potential consumer, which should not be considered an unethical act: this situation is repeated all the time, and sooner or later someone will turn to you for such information . Another source of information is local directories about firms, in particular the Yellow Pages, information retrieval systems DoubleGIS, etc. One should not neglect the information that can be obtained from local authorities, for example, from the small business support committee. However, it should be noted that while the question of identifying competitors is relevant, it is equally important to find out what product they offer, at what price, and what are its characteristic or unique features.

Analysis of competitors' products and services involves answering a number of questions:

Which organizations are direct competitors in the target market segment, i.e. who offers the same or very similar goods or services;

Which firms offer substitute products, i.e. who offers other goods or services that, while not directly competitive, may nevertheless lure consumers away;

What price level are set by competitors; what is the reason for the identified price differences;

What quality of goods and services are offered by competitors and how does this affect their prices;

What geographic areas are served by competitors;

Are competitors focused on the same market sector as the company in question, and what market share do they occupy; Is there a niche for new business in this market sector?

Obtaining information is part of the market research process, and in order to create a sound and realistic business plan, you need to find answers to all the questions posed.

When analyzing competitors and their products, one must also look at one's own products and services in order to determine how they correspond to competitive products and the nature of demand in the market as a whole, i.e. the issue of assessing the competitiveness of both products and enterprises is important. Has the firm set the price correctly, is it too high or too low? If a company installs more low prices than competitors, does it achieve higher sales volume? Are quality standards acceptable? Is it necessary to position the product according to the criterion of quality, and not by price? What is more acceptable for this market: a simple, but cheap and reliable product, or more sophisticated and expensive products, presented on sale in a wide range? It is possible that for some consumers both options are acceptable.

The process of identifying market segments allows you to select those that are more worthy of investment in labor and material resources based on the potential profitability of these sectors. The factors on which market segmentation can be based are various. These are consumer needs, geographic location, income level, age, gender or social status of the client, shopping habits, loyalty to a particular brand or simply a commonality of interests, and priorities can be determined in different ways, for example, depending on the number of consumers in each segment, its relative the profitability, geographic location or availability of the segment, or the amount of time and investment required to create the activity. When all factors are ranked in accordance with priorities, you can begin to develop a marketing mix for each target segment, taking into account these priorities.

External influencing factors

The factors that influence an organization may have different origins. It is relatively easy to identify those that can have an impact on the viability of the enterprise within the business itself (staff, management skills, finances available, etc.) and from the market environment (market size, demand for goods and services, competition, etc.). .P.). However, most business leaders, especially if they are unfamiliar with economics or not very interested in politics or current affairs and issues, find it much more difficult to focus on broader influencers.

One of the most widely used methods for analyzing these factors is the so-called PESTLE analysis, in which the pseudo-influencing factors are divided into six main categories: political (polical), economic (economic), social (social), technological (technology), legal (law). ) and ecological (ecology). Their specific significance, of course, is different for each organization? depending in particular on its particular geographical location and on the market segment in which it operates. Let's illustrate this with a few examples.

to political factors external environment include aspects such as public policy on transport, unemployment, regional development, education and training, etc. Thus, there may be financial incentives to locate a business in a rural developing area, or perhaps in a sparsely populated area where a new freeway is to be built. Predictable policy changes may also reveal a threat: for example, heavy taxation of gasoline and diesel will force people to use public transport, which will obviously lead to ever-increasing overheads in any business involved in the production or transportation of bulky goods over long distances. It is also important to identify government policies that may affect your business in the near future.

Economic factors can be viewed in many ways and can be difficult to predict in the long term, as the international economic situation is affected by a large number of national policies, changes in demand, recession, inflation, etc. For example, a high interest rate and relatively low inflation may result in the stability of the national currency, which makes imports cheap and exported goods expensive and encourages export companies to reduce sales volumes.

The interest rate is often used as a mechanism to control inflation, but invariably affects the exchange rate as well, so the combination of higher interest payments on loans received, together with falling export sales, can seriously hurt the movement. Money small firm. Higher lending rates may also reduce the amount of net income for buyers, who then direct their spending towards daily needs rather than luxury goods, which is rather unfavorable for a firm intending to manufacture or import them. The question is which of these economic influences may be significant for the specific plans of the enterprise, if not right now, then within the next few years.

Social factors and tendencies appear more slowly, and therefore, they are somewhat easier to predict than economic changes. Since the late 1970s there is a growing awareness in society of the importance of issues related to the protection environment, there are movements for reducing emissions and recycling, etc. Products that are not considered environmentally friendly face strong opposition, so manufacturers and suppliers must respond to this and make changes to their products or services.

A similar trend is also reflected in the change in attitude towards healthy lifestyle of life: the number of smokers has decreased, an increasing number of people are regularly exercising, preference is given to organic food, healthy products. All of this is accompanied by a change in product and service expectations, with consumers paying attention to brand reputation and quality.

That is why it is important to determine what impact the latest trends have on the company's products or services, whether it is possible to identify other changes that now or, possibly, will become significant for the enterprise in the future.

Analyzing the technological component, it is important to determine what impact the state technological policy has on the scope of the organization's activities, the speed at which new technologies and products are emerging. To do this, it is useful to analyze information about new patents and developments published in specialized journals, and use other sources of information.

Of great importance for the enterprise is the analysis of legal factors, which are expressed in the presence legislative framework regulating the conditions for the functioning of the organization.

Some of the environmental issues have already been mentioned in describing social trends, often shaped by increasing levels of education and public awareness, but there are other equally relevant examples. Thus, it is important to consider the impact that air and environmental pollution control laws have on a firm's operations.

Assessment of the company's competitiveness

Assessment of the competitiveness of goods and services, as well as the firm itself - important element analysis of competition in a particular market due to the fact that it allows you to really approach the assessment of both strengths and weaknesses organization and determine the direction of increasing the competitiveness of the enterprise and its products. Such an analysis is especially relevant when a business plan is developed for “internal use”, i.e. is a program for the development of the company as a whole. In the scientific literature, the following methods for assessing the competitiveness of an enterprise are distinguished:

1) scoring;

2) assessment from the standpoint of comparative advantages;

3) assessment based on the theory of effective competition;

4) evaluation based on the theory of quality;

5) matrix methods;

6) methodology of the American Management Association;

7) indicator method;

8) methodology for assessing competitiveness used in marketing research.

When scoring the competitiveness of enterprises, the performance indicators of competing enterprises are compared numerically. Then the average score of these indicators is found. By its level, one can judge the position of the enterprise. The scoring of individual indicators is presented in Table.

Scoring of single indicators

As can be seen from the table, the highest level of competitiveness is in enterprise A, the lowest is in enterprise B.

However, for a more accurate objective analysis of the competitiveness of enterprises, it is necessary to take into account the different influence on it (different significance) of each of the considered properties. At the same time, the maximum score of each competitiveness indicator is taken equal to 5 points, and the sum of the weight coefficients of competitiveness indicators is equal to 1 point. The second condition is met quite simply by applying the appropriate expert ranking technique. The results are shown in table.

Assessment of competitiveness indicators taking into account weight coefficients


Financial condition
Resource usage
Work with personnel
Long-term investments
Ability to innovate
Responsibility to society

Legend:

K in - weight coefficients of indicators of competitiveness, characterizing their significance in the overall assessment of the competitiveness of these producers;

R a - estimates of indicators of competitiveness of enterprise A;

R b - estimates of indicators of the competitiveness of enterprise B;

Р в - assessments of indicators of competitiveness of the enterprise B.

The competitiveness of enterprises is determined by the formula

K = ∑ K in R i

Thus, the competitiveness of enterprise A:

K a = 0.68 + 0.45 + 0.56 + 0.16 + 0.3 + 0.14 + 0.68 + 0.12 = 3.09 points.

For Enterprise B:

K b = 0.51 + 0.6 + 0.28 + 0.32 + 0.3 + 0.07 + 0.51 + 0.48 = 3.07 points.

For Enterprise B:

K in = 0.34 + 0.45 + 0.42 + 0.32 + 0.2 + 0.35 + 0.17 + 0.6 = 2.85 points.

Benefits of enterprise A: quality management, sustainable financial condition, the ability to innovate.

The advantage of enterprise B: the quality of goods.

Benefits of enterprise B: long-term capital investments, increased responsibility to society.

Thus, enterprises A and B have more favorable chances in the market. At the same time, the relative equality of competitiveness portends an intensification of competition between them.

Revealing the comparative advantages of the enterprise is based on the assumption that firms specialize in the production and export of those goods that cost them relatively cheaply. To determine the degree of competitiveness of a manufacturer, the indicators of competing enterprises are compared according to an accepted criterion, for example, in terms of profit, sales, market share, etc. However, it should be borne in mind that it is impossible to measure the comparative advantages of an enterprise in the complex of many indicators. So, if we focus only on production costs, then the quality of products and many other factors that determine the level of competitiveness and potential of the organization will not be taken into account.

In the theory of effective competition, methods for determining competitiveness are based on the assumption that an industry is considered more competitive if its member firms occupy a strong market position. The main method for analyzing the competitiveness of an industry is to compare the indicators of its member companies with those of competing firms.

To develop a criterion for the level of competitiveness, two main approaches are used: structural and functional.

Assessment of competitiveness based on a structural approach is carried out based on an analysis of the level of industry monopolization in the market (concentration of production and capital, barriers to entry of new companies into the market).

With a functional approach, as a rule, the following main groups of factors in the activities of companies are compared:

1) indicators reflecting the efficiency of production and marketing activities (the ratio of net profit to the net value of tangible assets, the ratio of net profit to net working capital);

2) indicators reflecting production area activities (the ratio of net sales, respectively, to the net value of tangible assets, to net working capital, to the value of inventories, to the value of tangible assets, to net working capital);

3) indicators characterizing financial activity enterprises: the period of payment of current accounts, the ratio of current debt during the year to the value of tangible assets, etc.

The indicators of labor productivity, return on investment, and the rate of return are also compared. Methods for determining competitiveness based on the theory of effective competition are widely used in Western Europe and the USA.

Based on the theory of product quality, methods have been developed for assessing the competitiveness of a manufacturer based on a comparison of quality indicators. In a subjective assessment, product quality parameters are compared based on their own requirements for the product, or the requirements of an individual consumer; with an objective assessment - with a similar product of a competing company. If an enterprise produces heterogeneous products, then to judge its competitiveness in a generalized form only on the basis of quality characteristics goods is not possible and a comparison of the system of indicators characterizing the economic potential of the enterprise is required.

Matrix methods are based on the idea of considering competition processes in dynamics. The theoretical basis of these methods is the concept life cycle product and technology, which distinguishes the following stages of this cycle from the moment the product appears to its disappearance on the market: introduction, growth, saturation and decline. Matrix methods - handy practical tool and are widely used by American firms.

Developed in the mid 70s. 20th century The Boston Consulting Group marketing firm uses a matrix method for assessing the competitiveness of various products both to analyze the characteristics of goods and to study the competitiveness of “strategic business units”: goods, individual companies, and sales activities of industries. The matrix is built on the basis of two indicators. The vertical shows the growth rate of market capacity on a linear scale, the horizontal shows the relative share of an entrepreneur or company in the market. All strategic business units are located on this matrix depending on their parameters and market conditions. The most competitive are those that occupy a significant share on it. To develop a strategy of behavior in the market, using the matrix method, they evaluate the level of competitiveness of the potential of both their own enterprise and competing enterprises.

The competitiveness of an enterprise can also be determined according to the methodology of the American Management Association (table).

Checklist for analyzing the strengths and weaknesses of an enterprise in competition

Each column in the table is assigned a value:

1 - better than anyone. Clear leader;

2 - above average. The business performance is quite good and stable;

3 - average level. Stable position in the market;

4 - you should take care of improving your position in the market;

5 - the situation is really alarming. The company is in a crisis situation.

This methodology offers a wide range of groups of indicators that allow using a scoring system to determine weakness companies compared to competitors.

The level of competitiveness of the economic potential of an enterprise can be determined using the indicator method, which makes it possible to identify ways to increase competitiveness, develop new strategy and management tactics. This method is based on a system of indicators, with the help of which a quantitative assessment of the competitiveness of the potential of an enterprise, company, corporation is determined. Each indicator - a set of characteristics that formally describe the state of the parameters of the object under study - includes a number of indicators that reflect the state of individual elements of this object.

The selected indicators are compared with similar normative or actual indicators of competitors. Each level of enterprise competitiveness corresponds to a certain set of indicators in the form of specific indicators. They form the competitiveness matrix of the enterprise's potential, which reflects the relative values of the selected indicators and their percentage-point expression.

To fill in the matrix at the enterprise, the creation of a data bank and the ability to receive and process external information are required. Without knowledge, study and comparison of information about the work of similar enterprises, none of the prestigious firms can count on long-term business success.

In the competitiveness matrix, the highest level of the indicator for today is taken as 100% and, accordingly, as 100 points. The scoring of the level of competitiveness is determined both by individual indicators, and in general for the entire complex.

The methodology for assessing competitiveness used in marketing research is intended to:

To assess the competitiveness of the enterprise and its products in marketing research;

To evaluate and select the best options for production plans (current and prospective) arising from marketing programs;

To evaluate and select the optimal programs for the reconstruction of production and enterprises, developed on the basis of marketing research;

To evaluate performance structural divisions enterprises, as well as assessing the results of the work of employees to ensure the competitiveness of the enterprise;

To assess the technical and economic level and select the optimal technological processes, equipment and structural materials used for the manufacture of products, in order to ensure the same - the competitiveness of the enterprise.

The technique can be used as an independent method when it is not possible economic evaluation compared options for decisions in terms of the totality of costs and results or other cost indicators, as well as complementary, when the compared options are economically approximately equivalent, but certain non-economic characteristics (social, economic, technical) are important, on the basis of which the assessment and selection are carried out optimal solutions.

To compare and evaluate various solutions and select the optimal one, a table is compiled, where each row corresponds to a certain solution option, and each column corresponds to an estimated indicator, based on the totality of which a comparison is made and the optimal option is determined. The number of compared options, as well as the number of evaluation indicators in each of them, can be any.

If the estimated indicators have the same units of measurement and are values of the same order, then it is possible to evaluate and choose the best solution based on their totality by simply summing up the indicators and comparing the results obtained. In this case, for each option (that is, for each line), the sum of the estimated indicators taken with their signs (“+” or “-”) is calculated. The line with the maximum (minimum) value of the sum will correspond to the optimal solution; the remaining values of the sums will correspond to less efficient options.

Since the estimated indicators, as a rule, have different units of measurement and are values of different orders (they differ from each other by 10-100 times, and therefore the summation will be incorrect), then it is impossible to evaluate and select the best option based on their totality without additional transformation or difficult. As such a transformation, it is advisable to bring heterogeneous indicators to a dimensionless (relative) form as follows.

1. In each column of the table, the best of the compared estimated indicator is found (the maximum value is chosen for indicators, the growth of which increases the efficiency of decisions; the minimum value is for indicators, the decrease of which increases the efficiency of decisions); the best values are underlined, and the indicators requiring minimization are indicated by an asterisk.

2. The best estimated indicators found in each of the columns are equated to one, and all other values of the indicators are expressed as fractions of one in relation to the best indicator of the corresponding column: if the maximum value of any indicator is chosen as the best, then all other values \u200b\u200bof the indicators of this column divided by it, and if the minimum value of any indicator is chosen as the best, then it is divided by all other indicators of this column.

3. A new table is compiled from the obtained dimensionless (relative) values of the estimated indicators with an additional, not yet filled in column C.

4. For each of the rows of the table, consisting of dimensionless (relative) values, i.e. for each compared solution option, the sum of indicators is determined, which is then divided by their number, so that the result obtained (arithmetic mean) is also expressed in fractions of one and would show the difference between the real optimal solution option and some ideal one (incorporating all the best estimated indicators) , which must correspond to the unit. The results obtained are entered in an additional column (C) of the table.

5. The line with the maximum value of the calculated arithmetic mean dimensionless (relative) indicator will correspond to the optimal solution; the remaining arithmetic mean values will correspond to less efficient options.

In the described method for evaluating competitiveness, the assumption of equal importance and equivalence of all evaluation indicators is based on which solutions are compared. It can be used in cases where all evaluation indicators are either really equally important (equivalent), or when it is impossible for some reason to rank them in terms of significance.

To take into account the unequal importance, unequalness of the estimated indicators due to various factors of a social, economic, scientific and technical nature, these indicators can be ranked and each of them can be given a numerical characteristic or coefficient, expressed in fractions of a unit and showing how many times (or on how many percent) some indicators are more important (priority) than others. In this case, it is necessary to observe the condition: the sum of the given coefficients of significance (importance) for all estimated indicators must be equal to one.

The ranking of the estimated indicators and the assignment of significance coefficients to them should be carried out by an expert or a group of experts, which may be economists, managers, scientific and technical specialists. To increase the reliability of their estimates, one should use known methods for processing results using mathematical statistics or probability theory.

After ranking and assigning significance coefficients, the dimensionless (relative) values of the estimated indicators of each column are multiplied by the significance coefficients corresponding to them and recorded in a new table. Best option the solution will correspond to a row with the maximum sum of dimensionless values of the estimated indicators multiplied by their respective significance coefficients; the remaining values of the sums will correspond to less efficient options.