Ph.D. Mashkova N.V., Ph.D. Turchaninova G.V., Matveeva Ya.A.
Ural Federal University named after the first President of Russia B.N. Yeltsin, Russia
The impact of the development of competition on the market of economic entities
Transitional nature Russian economy affected almost all areas economic activity. Business entities were faced with a fact: to act in market conditions. However, most of these organizations were not ready for this. The conditions for effective competition have not yet been created in Russia. The factors hindering the development of competition between economic entities include such as a high level of state regulation, low solvency of the population, low level of population mobility, and others.
As mentioned above, competition is an objective relationship that arises between market entities in conditions of limited resources. And, first of all, it is not so much material resources that should be considered as resources, but the market itself, i.e. a group of people with a specific need. Competitive struggle is conducted for this resource, because. in its absence, all other resources lose their meaning. And the reason that competition is a dynamic and continuous phenomenon is that although the number of consumers is limited, their needs, on the contrary, are unlimited. The goal of economic entities trying to conquer the market is to discover new needs and offer their own solution to the consumer problem.
The competitive strategy of an economic entity is the logic of its interaction with the market environment against the backdrop of competition, which forms ways to achieve the goals set by meeting the needs of stakeholders. Therefore, when building a competitive strategy, an economic entity should be guided by the following principles (Fig. 1):
Fig.1. Interaction of an economic entity with the environment against the backdrop of competition
According to Fig. 1, duration and stability competitive advantage business entity will depend on both external factors and the actions of competitors. In this regard, the implementation of the entity's competitive strategy is largely determined by the development of competition in the market for the services it offers. The competitive advantage of an economic entity is those distinctive competencies that make the services it provides the least preferable for the client. Hence, the formation of competitive strategies is a process of formation and maintenance of competitive advantages.
Analysis of domestic and foreign experience on the problem of managing the competitiveness of economic entities made it possible to identify several of its main aspects:
· assessment of the level of competitiveness (determination of indicators of competitiveness);
· bringing existing characteristics to the required competitive level;
· maintaining a competitive level based on monitoring, analysis and regulation.
Each of the above aspects is associated with numerous tasks that can be solved different ways. Some of them affect only the technology of work and can be applied regardless of environmental factors. They do not require significant restructuring in the organization and management of an economic entity. Others affect not only internal, but also external relations of the organization, require significant changes in the content of activities, the composition and number of departments, their functions, etc.
Among the tasks of the first group, related to finding indicators of the competitiveness of an economic entity, the following are highlighted:
· measurement of the market share of the offered goods (services);
· measurement of costs for products (services) produced by an economic entity at all stages life cycle;
· determination of innovative support for the production of goods (services);
· determination of the timeliness of the provision of services.
The tasks of the second group include:
· analysis of demand for goods (services) (in different markets, with different consumers);
· complex analysis own product (parameters, functions, structure, internal organization, scopes, etc.);
· complex analysis of substitute services (goods);
· analysis of goods (services) of competitors;
· determination of the stage of the life cycle of goods (services).
The main role among the aspects of managing the competitiveness of an economic entity belongs to the third group of tasks:
· optimization of the quality of goods (provided services) and costs;
· creation of fundamentally new types of goods (services) and updating existing ones;
· introduction of a motivation-based incentive system;
· providing necessary and reliable information.
The concept of the competitiveness of an economic entity is based on the need to accelerate the satisfaction of market requirements, saturating it with services of priority (increased) demand and sustainable development businesses in a competitive environment.
The indicator of competitiveness allows you to assess how the proposed product (service) meets the needs of the market. Financial stability is an indicator of the use of financial resources in a developing environment. The interaction of these two components makes it possible to assess the ability to maintain a stable position of an economic entity in the external environment.
Thus, it becomes clear that the stability of the competitiveness of the enterprise depends on how accurately the conditions for the formation and functioning of an economic entity are determined and how optimally the assessment of its competitive potential, the fulfillment of the goals and objectives, as well as the choice of priorities and allocation of resources, is carried out.
Journal Modern Economics No.
UDC 330.322.5
INFLUENCE OF THE DEVELOPMENT OF COMPETITION IN THE MARKET OF EDUCATIONAL SERVICES ON THE FORMATION OF COMPETITIVE ADVANTAGES OF ADDITIONAL PROFESSIONAL EDUCATION
Natalya Vyacheslavovna Mashkova,
Candidate of Economic Sciences, Associate Professor of the Department of Entrepreneurship and Innovation, Ural Federal University named after the first President Yeltsin, (343), *****@
Anton Yurievich Bairanshin,
Applicant, Ural Federal University named after the first President Yeltsin, *****@***ru
Yana Andreevna Matveeva,
Student of the Ural Federal University named after the first President Yeltsin, (343), *****@
N. V. Mashkova,
Cand. Eco. Sci., the senior lecturer of faculty of Business and innovations of the Ural federal university of a name of the first Russian president B. N. Eltsina, (, *****@
A. U. Bairanshin,
The post-graduate student of the Ural federal university of a name of the first Russian president B. N. Eltsina, *****@***ru
J. A. Matveeva
Student of the Ural Federal University of a name of the first Russian president B. N. Eltsina, (343), *****@
The article considers the impact of the development of competition in the market of educational services on the formation of competitive advantages of additional professional education, and also presents a model of the competitiveness management system implemented by the UrFU Business School.
The paper considers the effect of competition on the market of educational services on the formation of the competitive advantages of additional professional education, as well as a model of competitiveness management, implemented by business school UrfU.
Keywords: competitiveness, additional professional education, labor market, competitive advantages, quality of educational services.
key words: competitiveness, further professional education, labor market, competitive advantages, the quality of educational services.
The transitional nature of the Russian economy has affected many areas, including the area of supplementary vocational education(DPO). Institutions of higher and additional professional education were faced with a fact: to act in market conditions. However, most of these organizations were not ready for this. It should be noted that the education system is one of the most conservative systems that are difficult to reform. The reasons for this are varied.
Firstly, the education system serves to reproduce a certain way of thinking, mentality, traditions and values, and therefore is a kind of "repository" and protector of these values, and because of this, it cannot but be conservative.
Secondly, the education system in Russia is still under strong state influence.
Thirdly, in Russia in general, including in the field of education, the conditions for effective competition have not yet been created. The factors hindering the development of competition in educational institutions include such as a high level of state regulation, low solvency of the population, low level of population mobility, and others.
As mentioned above, competition is an objective relationship that arises between market entities in conditions of limited resources. And, first of all, as resources here one should consider not so much material resources as the market itself, that is, a group of people with a certain need. The competition is waged precisely for this resource, because in its absence, all other resources lose their meaning. And the reason that competition is a dynamic and continuous phenomenon is that although the number of consumers is limited, their needs, on the contrary, are unlimited. The goal of business entities trying to conquer the market is to discover new needs and offer their own solution to the consumer problem. The foregoing fully applies to the objects of DPO.
The competitive strategy of the FPE object is the logic of its interaction with the market environment against the backdrop of competition, which forms ways to achieve the goals set by meeting the needs of stakeholders. Therefore, when building a competitive strategy, the APE object should be guided by the following principles (Fig. 1):
Fig.1.9. Interaction of the FPO object with the environment against the background of competition
According to Figure 1, the duration and sustainability of the competitive advantages of an FPO facility will depend both on external factors and on the actions of competitors. In this regard, the implementation of the competitive strategy of the FPE facility is largely determined by the development of competition in the educational services market. The competitive advantage of a DPO facility is those distinctive competencies that make the services provided by a DPO facility the least preferable for a client. Hence, the formation of competitive strategies is a process of formation and maintenance of competitive advantages. However, distinctive competencies are always based on core competencies that an APE facility must have, and which are “guaranteed” by them through their external evaluation through licensing, attestation and accreditation of the university. In this case, it makes sense to talk about two levels of formation of competitive advantages and competitiveness of the FPE facility:
Basic, defining a standard set of qualities of an educational service, mandatory for implementation. Otherwise, the very existence of the educational program is impossible;
Additional, within the framework of which it becomes important to take into account the synergistic properties of the resource potential of the FPO facility, arising from its ability to operate in various markets and, accordingly, satisfy the various needs of potential customers.
An analysis of domestic and foreign experience on the problem of managing the competitiveness of educational institutions made it possible to identify several of its main aspects:
assessment of the level of competitiveness (determination of indicators of competitiveness);
bringing existing characteristics to the required competitive level;
· maintaining a competitive level based on monitoring, analysis and regulation.
Each of the above aspects is associated with numerous tasks that can be solved in various ways. Some of them affect only the technology of work and can be applied regardless of environmental factors. They do not require significant restructuring in the organization and management of the CPE system. Others affect not only internal, but also external relations of the organization, require significant changes in the content of activities, the composition and number of departments, their functions, etc.
Among the tasks of the first group, related to finding indicators of the competitiveness of the APE system, the following are highlighted:
measuring the market share of educational services;
· measuring the costs of educational products (services) at all stages of the life cycle;
definition of innovative provision of educational services;
Determining the timeliness of the provision of educational services.
The tasks of the second group include:
analysis of demand for services (in different markets, with different consumers);
a comprehensive analysis of your own educational product (parameters, functions, structure, internal organization, areas of application, etc.);
a comprehensive analysis of educational services-substitutes;
analysis of competitors' services;
· determination of the stage of the life cycle of educational services.
The main role among the aspects of managing the competitiveness of the APE system belongs to the third group of tasks:
optimization of the quality of services provided and costs;
Creation of fundamentally new types of services and updating existing ones;
· improvement of the training system;
· introduction of a motivationally grounded incentive system;
Providing necessary and reliable information.
The concept of the competitiveness of the APE system comes from the need to accelerate the satisfaction of the requirements of the educational market, to saturate it with services of priority (increased) demand and sustainable development of the APE facility in a competitive environment.
The competitiveness indicator allows you to assess how an educational program or an FVE object meets the needs of the market. Financial sustainability is an indicator of the use of financial resources in a developing environment. The interaction of these two components makes it possible to assess the ability to maintain a stable position of the FPO object in the external environment. However, do not forget that educational institution pursues the social effect as the main result of its activity, therefore profit is an auxiliary element that ensures progress towards the goal.
Taking into account a wide range of CPE issues when entering the consumer market, and then while maintaining their positions in different markets, the competitiveness system should include subsystems such as preparatory work, so analysis and diagnosis. Moreover, the second can be attributed to: analysis of the consumer product and learning technology; analysis of demand and identification of customer needs; market research of educational services; analysis of the operating environment; competition; service differentiation, strategic planning functioning of the DPO facility.
To date, the field of additional professional education and the sector of paid business educational services are already quite widely developed, although the demand, even solvent, as surveys show, is far from being saturated. And at the same time, the consumer (an organization or an individual with certain means) is prudent enough and wants to get educational project, full-fledged from the point of view of the criterion "costs - efficiency". In turn, an educational institution, starting certain programs, wants to get a real effect, both economic and social. It should be recognized that when deciding to start educational activities according to one or another model, it is necessary to consciously take into account the presence of factors that can create favorable conditions and competitive advantages for an educational institution. As can be seen from Table 1, such factors are very different for different models of education, and an error in their assessment can be quite expensive both from the standpoint of guaranteeing the quality of education and from the standpoint of achieving sustainable competitive advantages by an educational institution.
Currently, there is a wide variety of forms and methods of paid education, designed for different levels of requirements of students, basic education, and income. To what extent do the services offered meet the requirements of consumers? The answer to this question determines the demand for educational services, and, consequently, the financial success of CPE facilities.
Market of educational services in more depends on demand, on the preferences of end users and is subject to factors such as:
prestige;
Demand in the labor market;
Mobility;
Acquisition of a certain social status;
Possible profitability of the profession;
Possibility of self-realization.
Table 1
Competitive advantages in the system of higher
and additional professional education (according to )
Higher education | Professional retraining | Training | Master of Business Administration |
ð Demographic factor, large population, a significant contingent of young people with a need for higher education; ð Well-developed modern scientific and methodological potential (library, computers, R&D); ð The critical mass of full-time highly qualified teaching staff in most specialties (presence of specialized departments); | ð Strong links with business (consumer enterprises) or location in regions where a significant number of professional workers in need of retraining; ð Participation in state (including international) development programs human resources(military, unemployed); ð Presence of a core of highly qualified teachers with experience practical work; | ð Availability of unique information, materials, methods, applied know-how; ð Availability of highly qualified specialists in certain thematic areas, acting as teachers, instructors, trainers; ð A detailed methodology for conducting classes using interactive teaching methods and specialized training materials, tools, information technologies; | ð Existence of a developed market for expensive programs, i.e. the need for knowledge and skills to successful career(attractive jobs, career-oriented young people, companies that finance education) and solvent demand for them; ð Deep awareness of the leadership of the educational institution and the professorship of the specifics of training professional managers; ð Active marketing of programs and thoughtful formation of their portfolio; 3. The pricing policy of the DPO object and competitors in similar positions is analyzed, the analysis of price discrepancies. As a result of the analysis of the competitive position of the DPO object, the following are determined: The size of the market in which competition occurs; Advantages of the DPO facility over competitors (in all of the above parameters). In accordance with the conclusions, the priorities of the competitive policy of the APE object are developed, competitive and unviable unpromising educational programs are determined. We have assessed the sustainability of competitiveness based on the indicators adopted at the Business School of the Ural Federal University (UrFU). As a result of the research, the main criteria characterizing the competitiveness of the FPE facility in terms of quality priorities were identified. Ranking was carried out according to 9 indicators, taking into account the weight factor of actual and forecast values. In order to increase the competitiveness of FPE facilities, it is necessary not only to select the most important indicators and factors, but also to regularly record and analyze these parameters. The main task of the analysis is to identify the proportionality of the state of the components of the competitiveness of the object under study, to develop and implement measures to improve the quality of services provided. Currently, this work is often done haphazardly and episodically. The Ural Federal University Business School implements a model of the system for managing the competitiveness of the FVE object (Fig. 2) based on the process approach, in which external factors affect the competitiveness of the FVE object both at the "input" and at the "output" of the system.
The key elements of the system for managing the competitiveness of an FVE object are the development of its competitive policy in accordance with the mission of this educational institution, the assessment of the actual level of competitiveness in comparison with the main competitors in the market, the definition of tools for increasing the competitiveness of the FVE object, and the assessment of the effectiveness of managing its competitiveness. On the modern market educational services, it is vital to take into account the demands of the labor market as a whole and consumers of educational services separately (states, organizations, societies). From the point of view of the main consumers of educational services of the CVE system - graduates - managing the competitiveness of this educational sphere is impossible without constant monitoring of the employment of graduates and their salary level, as well as the image of the university that provided such educational services in the eyes of graduates. At the same time, one should not forget about the influence of external factors on ensuring the sustainability of the competitiveness of the FPE facility. The results of its activities are largely due to the economic and geographical position, investment, financial, labor potential of the state, region and city where the object is located. In addition, when assessing and managing the competitive advantages of this educational area, it is necessary to take into account legal, political, environmental, as well as socio-demographic factors in the region and the country as a whole. Bibliography 1. Management of the quality of education in higher education / Ed. . - St. Petersburg: Publishing House of St. Petersburg State University of Economics, 2005. - 315 p. 2. Gorbashko quality and competitiveness: Tutorial. - St. Petersburg: Publishing House of St. Petersburg State University of Economics, 2001. - 233 p. 3. Matveeva the state and directions of innovative development of additional professional education // Journal "Regional Economics: Theory and Practice", No. 17 (56), 2007 - P. 67-77. 4. Business education: specifics, programs, technologies, organization / Under the general. ed. . - M.: Publishing House of the State University Higher School of Economics, 2004. - 690 p. 5. Matveeva quality in the system of additional professional education: Monograph. Ekaterinburg: RAN, 2007 - 200 p. |
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The problem of education and analysis of the situation in the market of educational services today is a very important and popular issue. V modern world receiving role higher education and all the conditions for achieving it is the main and defining problem. Nowadays, in many countries, much attention and time is paid to the analysis of the educational services market, its competition, basic mechanisms, structure, role in the market as a whole, and much more are being studied. And Russia is no exception.
Education today is one of the most dynamic and promising developing sectors of the economy, and the educational services market is one of the highest in terms of development and growth. According to certain estimates, the annual increase in demand and supply for educational services in the field of higher education and education in the most rapidly developing countries reaches 10-15%. Features of the development of the education sector and the very essence of education predetermine the fact that the market of educational services has a certain specificity. The market for educational services is subject to the same forces that affect any other market, be it the market for goods or services. It is the market of educational services that combines both market and non-market mechanisms of functioning. This is its specificity.
The main element of the market economy and the mechanism for the existence and development of the market is competition. If we consider the market of educational services, it should be noted that it is not a market of perfect competition, since important conditions pure competition, such as: the presence of a standard product, the availability of economic information, the lack of price control by the state. However, competition in the market of educational services of higher professional education is not monopolistic, as it happens in the entire market as a whole. It is more appropriate to speak of an oligopoly here.
Probably the main example of competition in the educational services market is the United States of America. In the USA, this (educational) market has a very well built system, but it has been in the making for years, and experts have been able to find best option development of this sector of the market so that it is now a benchmark, which many countries of the world are striving for and want to achieve in the coming years. In the USA, a large number of universities and a fairly high mobility of the population, these factors create conditions for ensuring a high share of competition in the educational services market, but, most importantly, these are not the main or main conditions for creating competition, they only add a percentage of competition in the USA. In America, they work on the principle: not quantity, but quality. This means that it is not the main thing to have a large number of people who want to be in this market sector, but the main thing is to understand the mechanism and draw up a plan or system, a quality chain, i.e. a lot depends on the quality of this system.
If we consider the educational services market in Russia and, in particular, competition in the educational services market, we can see that our country has created plans for the development of the educational services market in general and various programs for the development and further improvement of this market. The same applies to competition in the market of educational services. Despite the fact that our country is inferior in this aspect to the leading countries: the USA, Germany, Great Britain, we are trying to achieve the best possible indicators and results, we are trying to create conditions and optimal programs in order to get even slightly closer to the leaders in this market.
Every university in our country and every city tries to create optimal conditions for fair competition in the market of educational services. Universities are trying in a fair fight to attract as many applicants as possible to their university, creating conditions for full-fledged education for them in the form of various privileges, benefits, increased scholarships and the possibility of exchanging experience with foreign countries and traveling to other countries and leading universities of this or that country.
Having analyzed this topic and this problem, we can conclude that today the competition in the educational services market in Russia takes place according to certain conditions and factors, and we strive to achieve the same indicators and results that the United States of America has. In the USA, an excellent system has been created in this sector of the market. Competition in the US educational services market has been built for more than one year, but in the United States they were able to draw up and form a system and a set of measures aimed at creating optimal conditions for the development of competition in the educational services market. Starting from the student admission system and ending with the independence of universities. In other countries, they are also trying to come exactly to the indicators of the United States and the leading countries of the world, not only in this market segment, but in general, if we consider the market from all positions and levels of the market, everyone wants to have such a system of competition in the educational services market.
Literature
- Todosiychuk A. V. 2011. Forecasting the development of the education system / Education in documents. 334 p.
- Son T.A. Formation of the educational services market (www.marketing.spb.ru). 214 p.
- See Porter M. [Electronic resource]. Access mode: Competition. Moscow: Williams, 2006; Competitive strategy: A methodology for analyzing industries and competitors. Moscow: Alpina Business Books, 2007; Competitive advantage: How to achieve a high result and ensure its sustainability. M.: Alpina Business Books,. 2012. 270 p.
The reform of the education system has led to the fact that the state itself began to promote the development of a market situation in the field of education, competition both on the side of producers and on the side of consumers of educational services.
The concept of competition is legally enshrined in the Law of the RSFSR dated March 22, 1991 No. 948-1 "On Competition and Restriction of Monopolistic Activities in Commodity Markets", according to which it is defined as "competitiveness of economic entities, when their independent actions effectively limit the ability of each of them to influence on the general terms and Conditions circulation of goods in a given market and stimulate the production of those goods that are required by the consumer.
Competition in relation to the market of educational services - the rivalry between educational institutions striving to achieve the same goal - the training of highly qualified specialists in demand on the labor market - for consumers.
Due to the unfavorable demographic situation in the country, which led to a sharp decrease in the number of applicants, there was an increase in competition in the educational services market. In 2010, 1.3 million people received a certificate of basic general education. (110.5% to the level of 2009), about secondary (complete) general education - 0.7 million people. (88.7%). Admission to state and municipal educational institutions higher professional education in 2010 decreased by 134.2 thousand people. (by 10.1%) mainly due to students admitted to distance learning (the reduction was 91.1 thousand people, or 15.0%). The number of students accepted for full-time education decreased by 19.2 thousand people, or by 3.0%. Admission to study in state and municipal educational institutions of higher professional education at the expense of the budgets of all levels in 2010 amounted to 519.1 thousand people. and decreased in comparison with 2009 by 40.7 thousand people, or by 7.3%. Specific gravity accepted with full reimbursement of tuition fees decreased by 1.3% and amounted to 56.6% of the total number of enrolled applicants.
Thus, the demographic decline has significantly reduced the competitiveness of non-state universities.
Competitors in the market of educational services can be:
- state universities;
- non-state universities providing similar educational services;
- organizations and industrial enterprises with a developed system of training, retraining and advanced training of personnel;
- consulting firms that organize training courses in addition to consulting activities.
Educational institutions, in addition to educational services, produce educational products, so any enterprises and organizations that produce similar products can act as competitors.
Depending on the type of consumers and educational services and products sold, the following types of competitors can be distinguished:
- direct - offer similar educational services to the same consumer groups (for example, state and non-state universities offer the same educational programs to applicants);
- commodity - offer the same educational services to different consumers (for example, full-time and part-time students are trained in the same specialty);
- indirect - they offer different educational services to the same consumers (for example, in addition to the main educational program, students can receive more additional education);
- implicit - offer different educational services to different consumers (for example, many universities provide training in various educational programs, designed both for school graduates and for an adult audience).
What are methods competition? General ideas about this issue are even among people who are far from entrepreneurial activity and economic sciences. In this article we will talk about what are the methods of competition in the market, we will discuss it different kinds and forms. Such information can be useful both to a wide audience and to aspiring entrepreneurs or economics students.
After all, we are faced with manifestations of the competitive struggle of firms every day, whether they are small enterprises or large ones. famous companies, foreign or domestic organizations. All of them compete with each other, and this manifests itself in completely different ways.
What is competition?
On this topic, there are many cumbersome scientific works, various studies, articles, and literature. In addition, there are a lot of definitions for the concept of "competition", they are given by different economists and scientists, but at the same time they all carry a similar meaning. Methods of competitive struggle is often the most important issue raised within the framework of this topic.
So, most definitions of competition boil down to the fact that enterprises strive to take a leading position in their market, thereby covering more consumers, which, in turn, will bring additional profit. Based on this, we can conclude that the struggle for the client is competition. Competitive methods include a large number of ways to increase your position in the market. For example, these can be price methods of competition or mixed forms based on various tricks and tricks. There can be a lot of options and combinations, and their effectiveness is determined by the ability to adapt to the market situation.
Types, methods of competition
Depending on the markets and their size, there are many forms for the development of competition. Touching upon the types of competition, as a rule, they mean, and in the conditions modern economy There are many examples of its manifestations. To do this, a quick glance at various markets and industries is enough.
As for the methods of competition, they are divided into price and non-price. Both are used and improved in business, while taking on new forms, changing and adapting to new realities. Next, the methods of competition in the market will be highlighted.
Price
Their implementation is the simplest in terms of the activities that the organization should carry out. Price methods of competition include, as a rule, a decrease in the cost of goods. The result of such actions may be an increase in consumer attention to products, an increase in sales and demand for goods. However, it should be remembered that everything has its own resource and border, when crossing which the opposite effect occurs.
The main disadvantage of the price method is that, firstly, the company must budget, initially planning to reduce prices, or the cost of production must be colossally low in order for the business to be profitable. Therefore, these methods are good as long as the business remains profitable.
The second disadvantage will be such a factor as the attachment of the price to the consumer properties of the product. It is quite possible to sell products for almost nothing compared to competitors, but no one has canceled the fact that if the quality of a product is so unsatisfactory, then it may not be in any demand at all. It turns out that in order to use price methods, a product or service must meet at least the minimum quality requirements, and sales must generate income.
Non-price
Speaking about these ways to increase competitiveness, very often they mean a wide range of different actions. For example, it can be marketing activities, and improving the consumer properties of the product, it also includes improving the quality, service, warranty service etc.
In today's economy, non-price methods of competition are much more effective. The fact is that consumers often perceive a simple price reduction as a sign of Low quality goods, and some types of products, for example mobile phones, - as an indicator of status, so lowering the cost in this case can scare off potential users. Next, specific methods of competition that are non-price will be described.
Brand recognition
The most effective way to increase competitiveness is to create products that the consumer will recognize. You don’t even need to give names, just simply describe the industry, and examples will come to mind, because there are a lot of such goods - there are world-famous cars, there are food industry products (carbonated drinks, various snacks), clothes, shoes, stationery and, of course, smartphones. Probably, most readers thought of the same brands, automobile concerns and groups of companies, because their products are well known.
Such methods of competitive struggle allow not only to maintain their position in the market, but also deter new firms. It is possible that the consumer will never know that new company makes better products, corny because of the lack of trust in it.
Quality
If before that we were talking about brand awareness, now we should move on to that aspect, without which it can become a business failure. Without quality products, it is impossible to achieve recognition. Recognition can work both ways, and if a product has poor consumer properties, then not only will they not buy it, but they will also inform other potential customers about it.
Quality is not only formalities and compliance with all standards and metrological standards and also the satisfaction of consumer expectations. If the properties of a product or service are not enough to make the customer satisfied, then they need to be upgraded.
Service and maintenance
A firm's competitive methods may include an emphasis on product support. This is especially true for high-tech products, such as computers, smartphones, cars, as well as some services, such as communications.
Product support can take many forms depending on the industry. For example, these can be hotlines, repair points, stations Maintenance and even staff who will fix a product problem at home.
Prestige
As mentioned above, brand recognition is excellent Prestige follows from the same, because most people prefer to use products with rich history, be it the same cars or carbonated drinks. The status of a thing is very important for a certain category of customers, and competent marketing activities and market positioning will help make the product such.
Advertising
Competitive methods include many powerful tools. Advertising is one of them. In today's world, there is a lot of room for marketing activities. Thanks to the development of technology, advertising has come a long way. Now it is not just columns in newspapers or billboards, but also television and radio. A wide scope for showing your product is provided by the Internet and social networks. A large number of Internet resources will help not only to inform about yourself, but also attract more additional audience, which may be looking for exactly your offer.
Product life extension
Very often, consumers complain that relatively new products quickly falls into disrepair. As a rule, it is about household appliances, electronics, and sometimes about clothes. An excellent competitive advantage will be either an improvement in the quality of products, or a longer product. A good attitude towards the client is a guarantee that he will return to buy your products again.
Types of competition
Returning to this topic, we should again note the existence of both perfect and imperfect competition.
In the first case, it means free market where firms can safely enter and exit with their products. In addition, in the case of free competition, enterprises cannot significantly affect the cost of goods in their segment, which gives rise to a breadth of choice for the buyer.
There is another group of features, it includes such factors as the free exchange of information, the exceptionally honest behavior of enterprises in relation to pricing policy, in addition, this can include high mobility organizations in the context that firms are free to change their activities.
It implies the absence or distortion of the above conditions, as well as the emergence of various collusions, increased pressure and control of certain industries, the emergence of monopolists (the only firms in their industry).
One of the most common types of imperfect competition today is oligopoly. In this case, it means a limited number of different manufacturers and sellers that dominate their industries. This situation occurs, for example, among manufacturers of automobiles, some foodstuffs, and cosmetics. The entry thresholds for these markets are quite high for new firms.
What gives competition
Methods of competitive struggle, due to their characteristics, are of great benefit to society. If competition is developed, consumers receive either best product, or products at a lower price compared to the offer of other market participants.
This is due to the endless struggle of market participants for leading positions, which gives a huge plus for the development of society and the economy, both at the smallest levels and on an international scale. It is important to remember that the main objective business - to receive and maximize profits, however, a large number of participants in the battle for customers require advantages over other firms. Organizations must create such products and provide such services that will interest potential buyers. The main methods of competition in the process of implementation themselves impose a kind of restriction on the business, preventing the provision of goods of inadequate quality, and regulate the price.
Results
The modern market cannot exist without competition. Yes, she accepts various forms, and the methods of competition - depending on industries and areas - are also different. They are constantly being improved, and organizations are forced to adapt to the dynamics of what is happening in the external environment.
Depending on economic, technical, social and political factors, some industries choose perfect competition while others move towards monopoly or even oligopoly. The task of enterprises is to recognize the changes in time and adapt to them.
These are natural processes, the actions of firms generate competition. The methods of competitive struggle in this case are only a consequence of changes environment, as well as the spirit of the times.
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