Analysis of market competition strategies of specific enterprises 1. Basic market competition strategies From the perspective of the general laws of market competition, there are three basic market strategies for enterprises to enhance their competitiveness and strive for competitive advantages: Cost leadership strategy Product differentiation Concentration strategy Concentration strategy (1) Cost leadership strategy. Cost leadership strategy, also called low-cost strategy, refers to reducing the production and sales costs of products through effective means, while ensuring the quality of products and services, making the price of one's own products lower than those of competitors to rapidly expand sales. Competitive strategies to increase market share. This strategy is mainly used in the following situations: when the company produces similar products on a large scale and has great potential to reduce costs; when the company faces strong competitors and wants to maintain and expand market share; in order to prevent more competitors When penetrating into the sales market of similar products and building higher barriers to entry; when companies are faced with the penetration of substitute products into the market, etc. There are many ways for enterprises to reduce costs. The basic methods include two aspects: one is to expand production scale and adopt advanced special technical equipment and production processes to improve labor productivity and work efficiency; the other is to improve management, reduce work-in-progress reserves, and reduce Waste products and defective products are eliminated, the production cycle is shortened, and various productive and non-productive expenses are saved. In addition, companies can also use patented technology, preferential treatment of raw materials, etc. to form a cost leadership advantage in the same industry. To achieve the above points, there must be two prerequisites: first, there is sufficient financial support; second, there is broad market support. (2) Product differentiation strategy. Product differentiation strategy is when an enterprise relies on its own proprietary technology and expertise or masters certain patented technology and management facilities to provide the society with products whose performance and quality are better than existing standards, to be unique in the same industry, or to be unique in the industry. There are special measures in the service field, and through advertising and promotional activities, special credibility has been established among users, thus forming differentiation. The guiding idea of ??product differentiation strategy is that the uniqueness of the product or service function allows the price of the product sold to be higher than the price of general standard products. (3) Centralization strategy. Concentration strategy means that the enterprise focuses its operations on a specific buyer group, or a special-purpose product, or a specific region, to establish the enterprise's competitive advantage and market position, and at the same time, in this Within a specific field, establish differences in product functions or production costs and gain a dominant position. This strategy is suitable for situations where the enterprise is not strong enough to gain an advantage in the entire market, but can only have local advantages. 2. Competitive strategies of competitors in different competitive positions. According to differences in competitive positions, market competitors can be divided into four types: market leaders, market challengers, and market followers. Market niche players. (1) Market leader strategy. A market leader is the company with the highest market share for the relevant product. If a market leader does not obtain a legal monopoly position, it will inevitably face ruthless challenges from competitors, so it is necessary to maintain a high degree of vigilance and adopt appropriate strategies. In order to maintain their advantages and maintain their leading position, market leaders can usually adopt the following three strategies. ① Expand the entire market demand. Generally speaking, leading companies benefit the most when the entire market is exploited, so market leaders should find new users for their products, create new uses, and increase usage. Find new users, develop new uses, increase usage ② Maintain market share. Enterprises that are market leaders must always be prepared for challenges from competitors and defend their market position. There are several defensive strategies that market leaders can adopt. Positional defense. This defensive strategy is to establish a defense line around the existing position and maintain the existing market, focusing on maintaining existing sales, products and share. Flanking defense. This defensive strategy means that in addition to defending its own positions, market leaders should also establish certain auxiliary bases as defensive positions. Attack first and defend. The defensive strategy refers to taking the initiative and attacking first before competitors launch an attack on themselves. Counterattack defense. When a market leader is attacked, it can counterattack the invader's main market position. Mobile defense. This defensive strategy is to not only defend the current position, but also to expand into new market positions. Market expansion can be achieved in two ways: market enlargement and market diversification. Market expansion means that enterprises shift their attention from current products to the basic needs related to current products, and research and develop all science and technology that can meet these needs; market diversification means expanding to other markets that have nothing to do with current products. Expand and implement diversified operations. Retreat to defense.
Comprehensive defense in all market positions is sometimes not worth the gain. In this case, a strategic retreat can be implemented, that is, giving up certain weak product markets and concentrating efforts on major products and markets. ③Increase market share. Market leaders' efforts to increase market share are also an important way to increase revenue and maintain their leadership position. Market leaders must consider the following three factors before pursuing market share. Antitrust Laws. In order to protect free competition, the laws of many countries stipulate that when a company's market share exceeds a certain limit, it must be forcibly broken down into several competing small companies. operating costs. Many products will have an optimal market share, when profit margins are highest. When the market share continues to increase but does not exceed the optimal share, the corporate profit rate will increase with the increase in market share; when the market share exceeds the optimal share and continues to rise, the corporate profit rate will increase with the market share. The main reason why market share increases and decreases is that the expenses for increasing market share will increase. Marketing mix strategy. Some marketing methods are very effective in increasing market share, but they may not necessarily increase revenue. Only in these two cases is the market share directly proportional to the rate of return: first, the unit cost does not decrease with the increase in market share, such as the Model T car of the American Ford Company in the 1920s; second, when providing high-quality products At this time, the increase in sales price greatly exceeds the cost invested in improving quality. In summary, market leaders must be good at expanding the total market demand, defending their market positions, defending against attacks from challengers, and increasing market share while ensuring increased revenue. Only in this way can they maintain a lasting market leadership position. (2) Market challenger strategy. Market challengers and market followers refer to those companies that occupy a secondary position (second, third or even lower position) in the market. These companies in a secondary position can adopt two strategies: one is to strive for a leading position in the market, challenge competitors, and become a market challenger; the other is to settle for a secondary position and seek success in a "prime" state. Make as much profit as possible and become a market follower. ① Determine strategic goals and challenge objects. The strategic goals of most market challengers are to expand market share and improve profit margins. Attack the market leader. This strategy is risky, but the potential gains are great, especially when the market leader makes mistakes and its service market is not effective, the attack effect is more significant. Innovate products across entire segments to outperform leaders. For example, Xerox developed better copying technology (dry copying instead of wet copying) and captured the copier market from 3M; later, Canon captured a large portion of Xerox's market by developing desktop computers. Attack local businesses that are small, poorly run, and short of capital. This kind of situation is quite common, such as when large foreign companies with strong strength enter the market and defeat those weak local companies. In short, the strategic goal depends on the target of the attack. If the market leader is the target of the attack, the goal may be to capture certain market shares; if the target of the attack is small businesses, the goal may be to drive these small businesses out of the market. But no matter what the situation, as long as the challenge is carried out, one principle must be adhered to: every action must be directed towards a clear, certain and possible goal. ②Choose an offensive strategy. After determining the strategic goals and competitors, it is also necessary to choose an offensive strategy based on the situation of the company itself and its competitors. Generally, there are several strategies to choose from. Frontal attack. The attacker concentrates all his efforts to engage the opponent head-on, which is called a frontal attack (head-on attack). At this time, the attacker will often attack the opponent's strong parts rather than his weak points. The outcome depends on whose strength and endurance are stronger. In a complete frontal attack, the attacker strives to compete with its opponents in terms of products, advertising, price, etc. If the attacker has little advantage over the leader, it is almost impossible to win. In order for a frontal attack to work, the attacker must surpass the opponent in terms of product, advertising, price, etc. Attack from the flank. The place where a competitor expects to be attacked is often its strong defensive zone, while its flanks and rear are much weaker, so its weaknesses (blind spots) naturally become the target of public criticism. The main principle of a flank attack is to concentrate on attacking the opponent's weak points. The attacker can first feign attack on the opponent's tightly defended frontal front to contain its main defensive force, and then launch the main attack on its flanks and back. This flanking attack is an excellent marketing strategy, especially for attackers with fewer total resources than their opponents.
Flank attack can be achieved from two aspects: one is the geographical aspect; the other is the market segment aspect. Geographic flanking attacks refer to challengers launching attacks in areas where competitors are weak across the country or even the world; segmented flanking attacks position the market in market segments that have not yet been occupied by the leader. For example, Japanese automobile companies have chosen to target consumer markets. The demand for energy-saving cars serves as its service market, thus occupying a blank market segment that has been ignored by American automakers. Encirclement and attack. A pure flanking attack focuses on the market demand that competitors ignore, while an enveloping attack means that the attacker launches a comprehensive attack on several fronts, forcing competitors to conduct a comprehensive defense. The attacker can provide the market with all the products and services that its competitors can offer, and more, making it impossible for consumers to refuse. This requires the attacker to mobilize abundant resources to ensure that the opponent is quickly defeated and unable to fight back. In addition, market segmentation plays an important role in the attack. If there is no market segmentation, the attacker's encirclement attack will become a frontal attack. If so, the attacker must be stronger than his opponent in some way. Attack in a roundabout way. This is an indirect offensive strategy. This strategy refers to avoiding direct confrontation with opponents and instead attacking markets that are easier to attack to expand one's resource base. There are three approaches available: first, the company diversifies into products unrelated to its industry, which are beyond the reach of market leaders; second, the company diversifies its existing products into new markets, making them Stay away from leaders. For example, in order to gain an advantage over Coca-Cola in China, Pepsi-Cola located its new bottle manufacturing plant in China's inland provinces to stay away from coastal cities where foreign beverage companies already operate; third, take a leapfrog approach Strategy, develop new technologies to replace existing products, especially in the high-tech field. This kind of technological "leapfrog" is extremely common. For example, Nintendo has introduced high-tech and redefined the "battlefield" to gain a foothold in the video game market. Captured a large amount of market share. Guerrilla attack. This strategy works well for smaller, undercapitalized businesses. Guerrilla attacks are small-scale, intermittent attacks directed at different parts of the opponent, with the purpose of harassing the "enemy", making it exhausted, and then eventually seizing a permanent position. Guerrilla attacks can use traditional or non-traditional methods of attack. Including selective price cuts, fierce promotional offensives, etc. It is difficult to achieve success by relying on one strategy alone. It is usually necessary to design a set of strategic combinations, that is, an overall strategy, to improve one's own. The offensive strategies of the above-mentioned market challengers are diverse. It is impossible for a challenger to use all strategies at the same time, but it is also possible to Very market position. (3) Market follower strategy. Market followers refer to those companies that imitate or follow market leaders in marketing strategies such as products, technology, prices, channels, and promotions. The core of market follower strategy is to find a development path that avoids touching the interests of competitors. Follower strategies can be divided into three categories according to their "closeness of following". ①Follow closely. Followers try their best to imitate the leader's strategy in market segments and marketing mix, but never surpass or stimulate the leader. Some even want to survive and develop by relying on the leader's market or product development, thus following the market. grow up. ②Distance following. Followers still follow the leader in major aspects such as target market, product innovation, price level and distribution channels, but adopt strategies that are different from the leader in other secondary aspects. ③Choose to follow. Followers follow the leader in some aspects and go their own way in other aspects, sometimes being innovative, but still avoid irritating the leader. Businesses that adopt this strategy have the potential to develop into market challengers. (4) Market niche player strategy. Market nichers are businesses that specialize in providing products and services to smaller market segments that are not of interest to larger companies, while smaller market segments that are not of interest to larger companies are called niche markets. The role of market niche players is to pick up gaps and make up for gaps. Although market niche players only occupy a small share of the overall market, they can more fully understand and meet the needs of a certain market segment, and therefore can grow quickly by providing high value-added products. This strategy is mostly used when enterprises are in the early stages of development and are relatively weak. ①Characteristics of niche market. A good niche market should have the following characteristics: sufficient market potential and purchasing power; potential for profit growth; not attractive to major competitors; the company has the necessary resources and capabilities to occupy this base point to fill the gap; The existing reputation is enough to stand up to competitors. ②The key to the development of market niche players is to achieve specialization. The main ways are as follows. End user specialization.
A company can specialize in providing services to a certain type of end-user, such as an airline food company that specializes in providing airline food for passengers to civil aviation companies. Vertical hierarchical specialization. Companies can specialize in providing services to certain vertical levels in the production and distribution cycle, such as casting factories specializing in the production of castings, and aluminum products factories specializing in the production of aluminum ingots and aluminum components. Customer scale specialization. Companies can specialize in serving a certain size (large, medium, or small) of customer groups, and market niche players specialize in serving small-scale customer groups that large companies do not pay attention to. Special customer specialization. A company may specialize in selling to one or a few large customers, such as many small companies that only supply all of their products to one large company. Geographic market specialization. The company only operates business within a certain location and region. Product or product line specialization. The company only operates a certain product or a certain type of product line. For example, a sock-making company specializes in the production of nylon stockings of different designs and colors, and a paper factory specializes in the production of cement packaging paper. Product features are specialized. A company specializes in a certain type of product or specialty product. For example, an antique bookstore specializes in old books, a company specializes in renting children's toys, etc. Customer order specialization. The company specializes in producing custom-made products based on customer orders. Quality-price specialization. Companies specialize in providing services to a certain level of the market. For example, Hewlett-Packard specializes in the high-quality and high-priced microcomputer market. Service professionalization. The company provides one or several services to the public that other companies do not have. For example, a home service company specializes in providing door-to-door pipe unblocking services, and a bank can accept customers' phone applications for loans and send cash to their doorsteps, etc. Sales channel specialization. The company only provides services to certain sales channels. For example, a soft drink company decides to only produce soft drinks packaged in large containers and sell them only at gas stations.