Competition analysis makes it possible to determine the position of the company in the market, as well as the competitiveness of the goods and services offered.
Competition is the struggle for market share between companies whose customers have similar needs.
F. Kotler identifies several signs of competitive actions:
active (aggressive)
selective
stochastic
passive
Active (aggressive) competitors - react quickly and aggressively to all events taking place on the market.
Selective competitors - compete only in selective indicators, such as price reduction.
Stochastic competitors are characterized by unforeseen actions. Sometimes they react aggressively, and
sometimes they ignore competitive actions.
Passive competitors practically do not react to the actions of competitors.
During the analysis of competitors, the model of the five forces of competition, which was developed by M. Porter, is important.
Five forces of competition that M. Porter identifies:
competition between manufacturers in the industry
the threat of new competitors
economic opportunities for suppliers
economic opportunities for consumers
substitute goods
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