Competitive analysis as a way of fighting against competitors.

In the conditions of the development of modern business and commerce, there are new ways that help to monitor not only your activities, but also characterize, analyze the professional activity of your competitors. For this, a discipline such as marketing was created. Do not think that this industry is only engaged in advertising its own enterprise, brand, brand. In addition, every year new methods are being created in order to win the race of enterprises as efficiently as possible and attract a wide audience of consumers. Competitiveness of the company does not mean that its long-term experience in the business world was able to free itself from potential competitors. Therefore, there are specialists who conduct competitive analysis, in order to determine the degree of success of the development of a competitive company.

If you rely on scientific research, as well as suggestions of scientists, it is more appropriate to pay attention to the traditional distribution of competitive analysis by Porter. A model of five forces was proposed and, as it turned out later, this model significantly helped companies to control their own activities. Porter argued that the more competitive firms put pressure on the activities of our company, the less chance we have to increase the cost of the goods and, accordingly, to get a high profit. With the arrival of a competitor on our territory, there is a great danger to profit. Thus, our firm must have three qualities to prevent unauthorized interference in our business:

• Customer loyalty to our brand;
• The costs of our production should be much lower;
• Given the scale of the enterprise, you must adhere to austerity when buying a large number of goods (discounts on goods in bulk).

The second force Porter called just a rivalry between the companies. In this case, competitive analysis calls the main factors that affect the degree of competition: the structure of industry on both sides, the demand for the goods. Porter argues that the faster the company returns to its investment, the more interest it presents to the audience. In addition, it should be noted that there is a competitive market analysis that allows you to conduct a more global characterization of the entire market of your production and assess the basic conditions of its activities.

It is not difficult to guess that while the industrial process is proceeding, competition between companies will always exist. Therefore, you must ensure that the demand for your product is active. So, you can increase your positions and weaken competitive forces. Having the ground in the production market, companies embark on the expansion of various market spheres. The logic is that the more slowly you continue to produce goods, the less likely that you will be able to raise the price for it during this period.

Let's pass now to the third force, which Porter has designated us. Each company tries to make it so that there is no need for buyers, anyway, to "bargain". Naturally, this situation causes prices to fluctuate, and here competitive analysis holds a percentage of the ratio of strong and weak buyers. Weak allow the company to increase the value of the goods, strong, respectively, on the contrary - no. The strength of buyers is expressed when they buy one or another product in large quantities, or if the enterprise consists of several small companies, given that the buying activity has plummeted.

When characterizing this process, competitive analysis, an example of which you can find in any business magazine, also highlights the last force - the influence of suppliers. This force explains that due to the price increase by the supplier, the company is obliged to significantly reduce the price of the goods, which leads to losses.

That is why, for the successful development of your business, you must use a competitive analysis that can calculate all the strategic plans of a competitive enterprise.