Peculiarities of Competitiveness Strategies in Business

Abstract

The competitive strategy of a business depends on the introduction of modern management practices. According to competitive strategy, businesses can be classified as market leaders, challengers, followers, and market niches, and the key aspects of their competition are analyzed. It is noted that the competition strategies are difficult to implement and require a considerable amount of resources. To develop an effective competitive strategy, we need to get the most information about our competition. We need to continuously monitor our products/services, pricing dynamics, key incentive channels with competitors' similar products, identify competitive advantages or disadvantages. Some market players react only to certain types of offensive action from the opponent and ignore all others. Some respond quickly and sharply to all competitors' actions. Some companies make such strategic actions that it is very difficult to calculate and guess their plans. Competitors in some areas may act harmoniously, while they in other areas can be in constant competition. Knowledge of future reactions gives rivals the keys to deciding how to act - to attack or defend their positions. Considering the examples of successful companies around the world, there is no universal model of competitive strategy for a particular business. Each firm must individually select the strategy that suits it, based on its goals, challenges, and opportunities. Keywords: Business, Competition, Strategy, Management. JEL Codes: M10, M20, M21