2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Competition in the marketing field is determined by market rivalry between various legal entities and individuals, that is, enterprises, manufacturers, consumers. In fact, competition is found everywhere - between individual countries, sectors, goods, subjects. Various methods are used to analyze competitive forces. Most often, when analyzing the work of an enterprise, M. Porter's competitive strategies are used.
Competition - good or bad?
Competition creates a difficult market situation for producers of various goods and services, and also generates circumstances that can lead to a dangerous situation. It can be unexpected surprises in the format of a sharp drop in demand, and the emergence of innovative products with undeniable advantages from competitors.
In an attempt to mitigate risks, businesses use specific techniques. They are united by the term "competitive analysis", which is the study of the competitive situation and the assessment of the advantages inherent in the enterprise and competitors operating in the same market. At the heart of the task is to establishthe advantages of the company or its products and assessing the opportunities for maintaining the advantages in specific conditions. Porter's matrix can be used as a way to achieve.
When talking about competitive advantage, we are talking about superiority over competitors. The presence of advantages over competitors is associated with the creation of a group of measures in the direction of goods, distribution, incentives, prices. In marketing, competitive strategies are aimed at maintaining or increasing an enterprise's market share.
Become more competitive with Porter
Speaking of basic strategies, it is important to understand and be able to apply M. Porter's competitive strategies. There are three types of them:
- Leading in cost reduction. Choosing such a strategy, the organization directs all its efforts to create the lowest possible costs. This allows you to bring to the market the product with the lowest cost, while maintaining the appropriate quality.
- Focus. In this situation, the company focuses all its attention on a particular market segment.
- Differentiation. When choosing this strategy, the organization directs all its efforts to create a unique product, due to which it differentiates itself from organizations producing a similar product.
The Porter Matrix is the path to company success
In order for the success of the company throughout its activities, it is important to focus on competitors. For systematization andclarification of the strategy of their work, the Porter matrix is recommended. It is she who helps to find weaknesses and attack them with marketing techniques.
Porter's matrix is a model that reflects the real state of surrounding competitors in a specific time period. Its components are the power of suppliers and consumers, the emergence of new competitors, the withdrawal of substitute products and competitive relations between firms in the same industry.
To understand how ideal the Porter matrix is for market analysis, using the example of the Bryanskpivo organization, you can consider all the subtleties of its formation.
Analogue manufacturers
The main competitors of JSC "Bryanskpivo" are JSC "Cheboksary brewing company "Buket of Chuvashia" and OOO "Solodovnya". The distribution of the rye m alt market among competitors in the market is as follows: Bryanskpivo OJSC - 37%, Solodovnya LLC - 25%, Cheboksary Brewing Company Buket Chuvashia OJSC - 12%, Novo altaysky Khlebokombinat OJSC - 8%, Iskitimsky Khlebokombinat - 5%, Sursky Solod LLC - 5%, Concentrate LLC - 5%, Soprodukt LLC - 2%, Other manufacturers - 1%.
Competition in the rye m alt market is quite significant. The main competitor for the enterprise is Solodovnya LLC, which occupies 22% of the market. JSC "Bryanskpivo" has a fairly extensive experience, has the largest working capital. This enterprise is also quite large and, operating in various market segments, occupies a leading position.
For evaluationcompetitiveness of OJSC "Bryanskpivo" in terms of commodity and pricing policy, as well as the policy of product distribution, use the method of integral assessment. The technique is based on a comparison of criteria of importance and evaluation. The higher this indicator, the better the competitive situation of the organization in its sector.
JSC "Bryanskpivo" occupies a fairly large market share. Porter's matrix shows that he should not forget that having significant advantages over competitors now, tomorrow the enterprise may fail. For example, a decrease in profits, a decrease in market share, and even bankruptcy. Therefore, the management of the plant needs to constantly take measures to strengthen its strengths and reduce weaknesses. It should be noted that the plant's position is quite stable, but one should still take into account the actions of competitors.
Customers
When selling its products, the company primarily focuses on domestic buyers, which becomes clear when the Porter matrix is studied. The competitive advantages of the enterprise are based on the increase in the client base of JSC "Bryanskpivo" by clients from near and far abroad. They are wholesalers, manufacturers of bread, chips, KKS, improvers and other companies for which the level of quality of rye m alt is important.
Suppliers
To determine the feasibility of cooperation with regular suppliers, it is necessary to analyze their prices for the suppliedraw materials and resources. OOO "Investsnab" is a reliable supplier of rye in the Bryansk region. Also, Bryanskpivo OJSC has repeatedly purchased rye from RosExport LLC (Samara) and RusAgroTorg LLC (Kursk). These suppliers are the largest in Russia and sell exclusively high-quality raw materials produced in accordance with the highest standards. As a result, JSC Bryanskpivo creates premium-class rye m alt, which is valued both in Russia and abroad.
Potential analogue manufacturers
The level of entry barriers to the rye m alt market is quite high. First of all, this is due to the fact that almost 80% of the market is occupied by 3 large enterprises. Significant economies of scale in production do not allow small producers to compete with market leaders. Another important aspect is that with any attempt to withdraw a cheaper offer, existing players reduce prices.
Substitute products
First of all, OJSC "Bryanskpivo" should be wary of competition from m alt concentrate producers. They cover a significant part of the market, including mini-bakeries and end-users.
When analyzing the rye m alt market, Porter's matrix of five competitive forces was used. It showed that OJSC Bryanskpivo occupies a leading position in this market. First of all, this is due to the fact that only OJSC Bryanskpivo uses drum technology in the production of rye m alt, which is demonstrated by the Porter matrix. An example of building a model made it possible to see that notless important indicators of the success of an enterprise are a wide geography of supplies, a presentation of useful information on the official website and a good reputation.
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