What are the common competitive strategies?

The general competition strategy includes the following:

1. Cost leadership strategy.

That is, to keep the cost of one's own product or service lower than the cost of competitors in the same industry for a long period of time. As costs fall, profits will increase, companies can adopt a low-price strategy, and brands will be more competitive. Toyota is known for its pursuit of perfection, but in order to adapt to the increasingly fierce market competition, Toyota also pays great attention to cutting the manufacturing cost of cars to make products more competitive.

2. Product differentiation strategy.

That is, to make the products and services provided unique in comparison with similar products or services. Under this strategy, the use of the brand fully reflects a certain uniqueness of the brand, and the enterprise determines its own target market and strategic steps on the basis of this uniqueness. There are various forms of expression, such as the brand image of Duliang Chate, unique product features, unique services, etc.

3. Concentration strategy.

That is, the enterprise determines the scope of competition in an industry through the segmentation of the industrial market, emphasizes the unique competitive advantage in an industry, and the enterprise concentrates on serving a specific market, or focuses on a specific consumer group, that is, the advantage of the enterprise in a special service for a certain market segment in an industry.

Enterprises concentrate various resources to accelerate the development of product production and sales scale, so that the brand can create influence in a short period of time. Because the concentration strategy makes the company too specialized, the ability to resist risks is weakened as a result.

The ancient Roman scholar Ovid said, "A horse will never gallop without a horse chasing after it!" ”

Therefore, competition is not as heinous as imagined, it makes backward companies out of the game and does not waste social resources, it promotes social progress, and the market needs competition.

Today's enterprises are facing unprecedented cruel competition, so how can these marketing thinking, marketing processes, and understanding of the purpose of marketing help them gain the greatest competitive advantage?

From the perspective of marketing, the competition between enterprises ultimately competes for the ideal positioning in the minds of customers in the target market.

If you want to grab a good position, you need to rely on the key word in marketing - value, that is, the company should have better capabilities and better resources to create, communicate and deliver more value for our target customers, so as to shape its own value proposition and occupy a dominant position in the minds of customers.

Here, we first need to start with the identification of competitors, that is, to identify, evaluate and select competitors; The next step is to develop a competitive strategy for the selected competitors, so as to help you better participate in the competition.

In other words, the first thing is to know who to compete with, and the second is how to compete with it. The key to this is that companies strive to deliver value and satisfaction to their target consumers.

In any industry, it is important to be very wary of competition and competitors, as these potential competitors may come from a completely different industry than yourself. At the same time, identifying different competitors can also help us to maximize our advantages when entering a new competitive market.

When it comes to identifying competitors, marketing needs to have two different perspectives:

Enterprises can jump out of the original industry competition, find a new target market that meets the same customer needs as themselves, and give full play to their own advantages.

Once you have identified your competitors or chosen a competitive market to participate in, you need to consider a competitive strategy to provide superior value to customers in the market to gain a competitive advantage.

From a marketing point of view, it can be analyzed from two aspects: market segmentation and market positioning in STP marketing, and these three strategies can be understood from two dimensions:

Finally, by combining two and two, you can get three strategies like this:

After choosing a competitive strategy, how does the company need to implement these competitive strategies? In the process of practice, how to judge whether these competitive strategies are suitable for enterprises?

Once you've defined your competitive strategy, you need to align your resources around your target market and value proposition to build your product.

In short, from the perspective of marketing, the competitive advantage of an enterprise ultimately falls on the positioning of products and services in the minds of customers in the target market, and it is necessary to convey to customers the value proposition that they can recognize and accept.

On the other hand, an important carrier of value is the product. We also need to understand product strategy from a marketing perspective.

There are three main types of general competitive strategies:

To be unconventional is to achieve the differentiation of products and services through technological innovation, so as to improve the quality and obtain more benefits.

Cost leadership is to imitate the products and services of the leader, but strive to reduce the cost, so as to win the favor of the market at a lower cost and obtain profits.

Fine-mold quietly divide the market, avoid competition with competitors in the current market, but strive to find a blank area in the market segmentation, and then start from this field, and expand their own business model after growth, so as to avoid competition in the early stage.

The above three strategies are applicable to the following: leader, follower, and new entrant.

Market competition strategy is a strategy developed and implemented by an enterprise to seize or maintain a leading position or competitive advantage in the market in order to adapt to the changing market competition environment. The competitive position of the enterprise in the market, as well as the competitive strategy that may be adopted by the company, are often affected by the competitive structure of the industry in which the enterprise is located. The basic factors influencing the competitive structure of the industry are:

The competitive power within the industry, the evaluation ability of customers, the evaluation ability of suppliers, the threat of potential competitors, and the pressure of substitute products. The competitive position of an enterprise in the market determines the competitive strategy it may adopt.

There are four types of competitive positions of enterprises in specific markets: 1. Competitive strategies of market leaders: In order to maintain their leading position and vested interests in the market, market leaders may adopt competitive strategies such as expanding market demand, maintaining market share or increasing market share.

In order to expand market demand, we adopt strategies such as discovering new users, opening up new uses, increasing usage, and increasing the frequency of use. In order to protect the market share, we have adopted strategies such as innovative development, fortification and defense, and direct counterattack.

2. The competitive strategy of market challengers: market challengers refer to those enterprises that occupy a secondary position in the market, and they are not willing to accept their current position, through the challenge and attack of market leaders or other competitors, to improve their market share and market competitive position, and even to replace the position of market leaders.

3. The competitive strategy of market followers: the competition between market leaders and market challengers is often a lose-lose situation, so that other competitors usually have to think twice, and do not dare to rashly attack the market leader, and more choose the competitive strategy of market followers. 4. The competitive strategy of the market filler:

There are a large number of small and medium-sized enterprises in almost all industries, and these small and medium-sized enterprises are eyeing the market vacancies ignored by large enterprises, and through professional marketing, they concentrate their resource advantages to meet the needs of this part of the market.