Competitive advantage of firms on a global scale. Competitive advantages

In the article we will talk about the likely areas of competitive advantages using examples of world-class companies, we will look at the features of creating business advantages in different industries: in the banking sector, in the tourism and hotel markets, we will separately talk about the specifics of creating competitive advantages for wholesale and retail taking into account current global trends.

1. Universal for everyone
2. Advantages in the field of trade

Universal for everyone

Let's start the list of our examples of competitive advantages with 12 best methods their formations, which are prepared by analyzing leading industries, global brands and large markets. The point of all the examples outlined below is that there is no single correct formula for creating competitive advantage. You can win in any market. It is important to find that feature of the business that can ensure the highest level of profit for the company.

Research and Innovation

The IT branch is the most technologically equipped area of ​​business. Each player in this market strives to become a leader in innovative solutions and developments. In this industry, those who set the pace for the development of innovations and technologies are in the lead and receive super profits. Apple and Sony are striking examples of two companies that have achieved leadership in the IT market through the use of innovation as a sustainable competitive advantage.

Brand awareness

Global recognition, fame and respect for the brand has allowed companies such as Coca-Cola and Virgin to maintain their market share and dominate the market for many years. Higher brand awareness and a positive brand identity have also reduced the costs for Virgin to capture new parts of the market.

Corporate reputation

The highest level of corporate reputation can also serve as a source of competitive advantage in the market. Price Waterhouse (consulting and auditing) and Berkshire Hathaway (investments, insurance) have used this competitive advantage to give their companies world-class status.

Patents

Proprietary technologies are assets that can provide a company with a competitive advantage in the long term. In world practice, methods of purchasing companies due to the ownership of patents and other protected technologies are widely used. General Electric is known for becoming one of the most powerful companies in the world through its ownership of patented designs.

Economies of scale

Dangote Group has become one of the leading manufacturing conglomerates in Africa due to its ability to create products in greater volume and maintain uniform prices throughout its trading area.

Quick access to reverse capital

In world practice, OJSCs win over private companies due to their ability to attract the highest level of investment in a very short period of time. For example, Oracle attracted investment to purchase more than 50 companies in just 5 years.

Barriers to entry

Country restrictions on rivals, and a country's protectionist policies can serve as a competitive advantage for local companies. Example, Telmex (telecommunications company, Mexico) or Chevron (energy, USA).

The highest quality product and level of service

The highest level of service is always a strong competitive advantage of a product. IKEA has gained a strong position in the market by being able to provide superior product performance at low cost and superior after-sales service.

Exclusive

Coscharis Group has seized leadership in the Nigerian market by possessing exclusive rights to distribute BMW vehicles throughout West Africa.

Elasticity

The ability to quickly adapt to market changes has provided Microsoft with a leading position in the global software market.

Speed ​​and time

Concentrating all efforts on achieving the greatest speed and reducing service completion times has given companies such as FedEx and Domino Pizza a growing and sustainable position in the industry.

Low prices

The low-price strategy and the ability to maintain, strengthen and develop it have provided the Wall-Mart retail chain with global leadership and the highest level of company capitalization.

Improved database processing

GTBank, AT&T, Google, Facebook have achieved global leadership thanks to advanced technologies and achievements in the field of processing and managing large volumes of information.

Advantages in the banking services market

IN this section We will offer top tips for developing competitive advantages for companies in the banking sector. The weakening of the economies of European countries in the modern world and the increasing level of instability in the global economy leads to the need to revise the basis of the competitive advantages of the monetary sector. In 2013 - 2015, it will be more profitable and important for the banking sector to concentrate efforts on developing subsequent competitive advantages:

• increase in return on capital
• achieving leading positions in profitability in one or more areas of banking activity (in other words, transition to specialization and provision of the best interest rates for narrow market niches)
• improvement of banking services, speed and convenience of transactions by updating and simplifying business processes
• achieving leadership in safety, reliability and asset protection
• development of mobile Internet banking and increase in the technological level of service provision
• Simplification of shopping and reduction of commissions using bank cards(including the creation of guarantees for payment cancellation in case of negligent execution of sales contracts - following the example of the PayPal payment system)

Advantages in the hotel services market

In order to choose the right competitive advantage, be sure to conduct a comparative analysis of the criteria for the provision of services by your hotel company and its competitors. More successful examples of competitive advantages for the hotel business:

• leadership in service level
• low cost advantage (subject to the existence of the ability to obtain higher profits compared to competitors)
• provision of free meals or other additional services
• the most profitable loyalty programs that stimulate repeat purchases and more frequent implementation of hotel services
• comfortable location of the hotel for certain groups of clients
• availability of all necessary additional services (conference room, wi-fi, internet, swimming pool, beauty salon, restaurant, etc.)
• a unique style of decoration and hotel service, allowing the consumer to immerse themselves in a completely new environment

Advantages in the tourism services market

In order to choose the right competitive advantage, be sure to conduct a comparative analysis of the criteria for the provision of services by your company and its competitors. More successful examples of competitive advantages for tourism businesses:

• leadership in the level of service provision
• focusing on the quality of service for certain customer groups
• the ability to set low prices (subject to the ability to obtain higher profits compared to competitors)
• ease of use of the service and minimization of client time
• the most profitable loyalty programs that stimulate repeat purchases
• leadership in one of the types of tourism (see example of tourism market segmentation)
• availability of all necessary related services
• the most noteworthy travel programs
• availability mobile application and the highest technology of services
• the most profitable flaming tours

Advantages in trading

More successful examples of competitive advantages for the trade industry (for example retail store): breadth of assortment, exclusivity of sales in a certain area, the ability to set low prices, leadership in service during the warranty period and after-sales service, availability of free prizes for the buyer, leadership in the attractiveness of promotional offers, leadership in the quality, freshness, modernity of the products sold; personnel competence; ease of selection, convenience of selection and time saving for the buyer; computerization of business and the presence of web trading; the most profitable loyalty programs; advice from professionals on choosing products for the buyer; Convenient location of the retail outlet.

FEDERAL AGENCY FOR EDUCATION

The most complete interpretation of the concept of “competitive advantage” existing in economic research is reflected by the definition of G.L. Azoeva. In accordance with this interpretation, competitive advantages are understood as “concentrated manifestations of superiority over competitors in the economic, technical, organizational areas of an enterprise’s activity, which can be measured by economic indicators (additional profit, higher profitability, market share, sales volume).” According to G.L. Azoev, superiority over competitors in the economic, technical, organizational spheres of an enterprise’s activity is a competitive advantage only if it is reflected in an increase in sales volumes, profits and market share2. Thus, competitive advantage is those characteristics and properties of a product or brand, as well as specific forms of business organization that provide the company with a certain advantage over its competitors. The key success factors influencing competitive advantage include: - technological: high research potential, ability for industrial innovation; - production: full use of production economies of scale and experience, high quality production, optimal use production capacity, high performance, necessary productivity flexibility; - marketing: use of marketing economies of scale and experience, high level of after-sales service, wide product line, powerful sales network, high speed of product delivery, low sales costs; - managerial: the ability to quickly respond to changes in the external environment, the presence of managerial experience; ability to quickly bring a product to the market from the R&D stage; - others: powerful information network, high image, favorable territorial location, access to financial resources, ability to protect intellectual property3. The main task of a company in the field of competition is to create such competitive advantages that would be real, expressive, and significant. Competitive advantages are not permanent; they are won and maintained only through continuous improvement in all areas of the company's activities, which is a labor-intensive and expensive process. 1.2 Types of competitive advantages of a company Let's consider the typologies of competitive advantages of a company. First typology (internal and external competitive advantages) Internal competitive advantage is based on the company's superiority in terms of costs, which allows the cost of manufactured products to be lower than that of competitors. Lower cost gives the company an advantage if the product meets the industry average quality standard. Otherwise, a product of poorer quality may be sold through a reduction in its price, which reduces the share of profit. Accordingly, in this embodiment, the cost advantage does not provide benefits. Internal competitive advantage results from high performance and effective management costs. Relatively low costs provide the company with greater profitability and resistance to lower sales prices imposed by the market or competition. Low costs allow, if necessary, to implement a price dumping policy, setting more low prices in order to increase market share, low costs are also a source of profit, which can be reinvested in production to improve product quality, other forms of product differentiation, or used to support other areas of the business. In addition, they create effective protection against the five forces of competition (M. Porter). Such as the emergence of new competitors, the possibility of substitute products, the ability of consumers to defend their interests, the ability of suppliers to impose their conditions, competition between long-existing firms. Internal competitive advantage is based mainly on a proven production process and effective management of enterprise resources. External competitive advantage is based on the distinctive properties of a product or service that have greater “customer value” for the buyer than similar products of competitors. This allows you to set higher sales prices than competitors that do not provide the corresponding distinctive quality. Any innovation that gives an organization a real increase in its success in the market is a competitive advantage. Organizations achieve competitive advantage by finding new ways to compete in their industry and entering the market with them, which can be called in one word - “innovation”. Innovation in a broad sense includes both the improvement of technology and the improvement of ways and methods of doing business. Innovation can be expressed in a change in the product or production process, new approaches to marketing, new ways of distributing goods, new concepts of competition, etc. The most typical sources of obtaining external competitive advantages include: - new technologies; - changes in the structure and cost of individual elements in the technological chain of production and sale of goods; - new consumer requests; - emergence of a new market segment; - changes in the “rules of the game” in the market. A special source is information about your business plus professional skills that allow you to obtain and process such information so that the final product of processing turns out to be a real competitive advantage. Competitive advantages based on cost alone are generally not as durable as advantages based on differentiation. (Cheap labor refers to the advantage of low rank). Competitive advantages of a higher level or order, such as proprietary technology, differentiation based on unique products or services, an organization's reputation based on enhanced marketing activities , close relationships with customers can be maintained for a longer period of time. Typically, high-order benefits are achieved through long-term, intensive investment in production capacity, specialized training, R&D, and marketing investments. To maintain competitiveness, an organization must create new advantages at least as quickly as its competitors can copy existing ones.4 Second typology (by degree of sustainability) Distinguishes between sustainable and unsustainable competitive advantages Third typology (by sphere of manifestation) By sphere manifestations highlight: - competitive advantages in the field of R&D, expressed in the degree of novelty, the scientific and technical level of applied R&D and R&D, the optimal structure of R&D costs and their economic efficiency, in patent purity and patentability of developments, timeliness of preparation of R&D results for production development, completeness taking into account the conditions of consumption of developed products, the duration of R&D; - competitive advantages in the sphere of production, expressed in accordance with the level of concentration of production and the type of market (high level of concentration in conditions of pure monopoly, monopolistic and oligopolistic competition, low level in conditions of a free competition market), in the use of progressive forms of organization of production (specialization, cooperation, combination ), in the amount of production capacity of the enterprise, in the use of advanced equipment, technology, construction materials, in the high professional and qualification level of labor personnel and scientific organization of labor, the efficiency of use of production resources, the efficiency of design and technological preparation of production and the efficiency of production in general; - competitive advantages in the field of sales, expressed in improved pricing, more efficient distribution of goods and sales promotion, more rational relations with intermediaries, more efficient systems of settlements with consumers; - competitive advantages in the service sector, expressed in more effective pre-sales and after-sales service of products, warranty and post-warranty service. Fourth typology (by type of manifestation) By type of manifestation, it is necessary to distinguish between technical, economic, and managerial competitive advantages: - technical competitive advantages are manifested in superiority in production technology, superiority of technical characteristics of machines and equipment, technological features of raw materials used in production, technical parameters of products ; - economic competitive advantages consist of a more favorable economic-geographical position and a more rational location of the enterprise, greater economic potential of the enterprise, more efficient use of the enterprise's resources, allowing to reduce the cost of production, better economic characteristics of the products compared to competitors, a better financial condition of the enterprise, making it easier access to credit resources and expanding investment opportunities; - managerial competitive advantages are manifested in more effective implementation of the functions of forecasting, planning, organization, regulation, accounting, control and analysis of production and economic activities. Fifth typology of competitive advantages The following types of competitive advantages are distinguished: 1) competitive advantages based on economic factors; 2) competitive advantages of a structural nature; 3) competitive advantages of a regulatory nature; 4) competitive advantages associated with the development of market infrastructure; 5) competitive advantages of a technological nature; 6) competitive advantages associated with the level of information support; 7) competitive advantages based on geographical factors; 8) competitive advantages based on demographic factors; 9) competitive advantages achieved as a result of actions that violate the law. Competitive advantages based on economic factors are determined by: 1) the best general economic state of the markets in which the enterprise operates, expressed in high industry average profits, long payback periods on investments, favorable price dynamics, high levels of disposable income per capita, the absence of non-payments, and inflationary processes etc.; 2) objective factors stimulating demand: large and growing market capacity, low sensitivity of consumers to price changes, weak cyclicality and seasonality of demand, lack of substitute goods; 3) effect of scale of production. 4) the effect of scale of activity, which manifests itself in the ability to satisfy a wide variety of consumer needs, while setting high prices for the product due to its complex nature; 5) the effect of learning experience, which is expressed in greater labor efficiency due to specialization in types and methods of work, technological innovation in production processes, optimal loading of equipment, more complete use of resources, and the introduction of new product concepts; 6) economic potential of the enterprise. Competitive advantages of a structural nature are determined mainly by the high level of integration of the production and sales process in the company, which makes it possible to realize the advantages of intracorporate connections in the form of internal transfer prices, access to total investment, raw materials, production, innovation and information resources, and a common sales network. Within the framework of integrated structures, potential opportunities are created for concluding anti-competitive agreements and coordinated actions of group members (both horizontal and vertical), including with government authorities. A powerful source of strengthening a company's competitive position is the use of relationships between its various divisions and strategic business areas. The phenomenon when income from the joint use of resources exceeds the amount of income from the separate use of the same resources is called the synergy effect. Structural competitive advantages also include the ability to quickly penetrate unoccupied market segments. Competitive advantages of a regulatory nature are based on legislative and administrative measures, as well as on government incentive policies in the field of investment volumes, credit, tax and customs rates in a certain commodity area. Such competitive advantages exist due to laws, regulations, privileges and other decisions of government and management authorities. These include: - benefits provided to the region or individual enterprises by government authorities; - the possibility of unhindered import and export of goods outside the administrative-territorial entity (region, territory); - exclusive rights to intellectual property, ensuring a monopoly position for a certain period. Advantages of a regulatory nature differ from others in that they can be eliminated relatively quickly by repealing the relevant legislation. Competitive advantages associated with the development of market infrastructure arise as a result of varying degrees: - development of the necessary means of communication (transport, communications); - organization and openness of labor, capital, investment goods and technology markets; - development of a distribution network, including retail, wholesale, futures trade, services for the provision of consulting, information, leasing and other services; - development of inter-company cooperation. Technological competitive advantages are determined by the high level of applied science and technology in the industry, special technical characteristics machines and equipment, technological features of raw materials and materials used in the production of goods, technical parameters of products. Competitive advantages associated with the level of information support are determined by good awareness and are based on the availability of an extensive data bank about sellers, buyers, advertising activities, and information about the market infrastructure. The absence, insufficiency and unreliability of information becomes a serious obstacle to competition. Specific advantages based on geographical factors are associated with the ability to economically overcome the geographical boundaries of markets (local, regional, national, global), as well as the favorable geographical location of the enterprise. In addition, the geographic barrier to entry for potential competitors into the market is the difficulty of moving goods between territories due to the unavailability of vehicles for transporting goods, significant additional costs for crossing market borders, and loss of quality and consumer properties of goods during their transportation. Demographic-based competitive advantages arise from demographic changes in the target market segment. Factors influencing the volume and structure of demand for the products offered include changes in the size of the target population, its gender and age composition, population migration, as well as changes in the level of education and professional level. Competitive advantages achieved as a result of actions that violate legal norms include: - unfair competition; - directly or indirectly fix sales or purchase prices or any other trading conditions; - restrict or control production, markets, technological development or investment; - share markets or sources of supply; - apply different conditions to identical transactions with other parties, thereby placing them at a disadvantage; - raise the issue of concluding contracts depending on the acceptance by other parties of additional obligations that are not related to the subject of these contracts, etc. 2. STRATEGIES FOR IMPLEMENTING COMPETITIVE ADVANTAGES 2.1 Strategic competitive advantages of the company and ways to implement them in the domestic market The main task in strategic orientation firm is the choice of a basic competitive strategy for a specific business area. A competitive strategy must be based on two essential conditions: - it is necessary to determine the strategic goal of the company regarding a given product or service in terms of the scale of competition. - it is necessary to choose the type of competitive advantage. The strategic goal of the company involves targeting the entire market or a specific segment. Basic competitive strategies vary depending on what advantage they rely on. Here it is necessary to decide what type of competitive advantage to give preference to - internal, based on cost reduction, or external, based on the uniqueness of the product; which is easier to defend in a competitive market. The main factors influencing competitive advantage include: - technological: high research potential, ability for industrial innovation; - production: full use of production economies of scale and experience, high quality production, optimal use of production capacity, high productivity, necessary production flexibility; - marketing: use of marketing economies of scale and experience, high level of after-sales service, wide product line, powerful sales network, high speed of product delivery, low sales costs; managerial: ability to quickly respond to changes in the external environment, availability of managerial experience; ability to quickly bring a product to the market from the R&D stage; - others: powerful information network, high image, favorable territorial location, access to financial resources, ability to protect intellectual property. Basic competitive strategies include: - cost leadership strategy; - differentiation strategy; - focusing strategy. Cost leadership strategy When choosing a cost leadership strategy, a company addresses the entire market with the same product, neglecting differences in segments, trying as much as possible to reduce the cost of manufacturing products. It targets a wide market and produces goods in large quantities. At the same time, the company focuses its attention and efforts not on how the needs of individual consumer groups differ, but on what these needs have in common. In addition, this strategy ensures the widest possible boundaries of the potential market. The focus of the entire strategy is to create internal competitive advantage, which can be achieved through higher productivity and effective cost management. The company's goal in this case is related to the use of cost superiority as the basis for increasing market share through price leadership or generating additional profits. Leadership due to the advantage of lower costs than competitors gives the company the opportunity to resist its direct competitors even in the event of a price war. Low costs are a high barrier to entry for potential competitors and a good defense against substitute products. The main factors of superiority in costs include: the use of advantages due to the effects of scale and experience; - control over fixed costs; - high technological level of production; - stronger staff motivation; - privileged access to sources of raw materials. As a rule, these advantages manifest themselves in the manufacture of standard products of mass demand, when the possibilities of differentiation are limited and demand is price elastic, and the likelihood of consumers switching to others is high. The cost minimization strategy has disadvantages. Cost reduction techniques can be easily copied by competitors; technological breakthroughs can neutralize existing internal competitive advantages associated with accumulated experience; due to an excessive focus on cost reduction - insufficient attention to changes in market requirements, a decrease in product quality is possible. This strategy is aggressive and is most easily implemented when the enterprise has access to exclusive, low-cost resources. Strategy of differentiation by segments (classes) of manufactured goods The main goal of each differentiation strategy is to give the product or service properties that are distinctive from similar competing goods or services, which create “customer value” associated with the advantage of the product, time, place, service. Customer value is the utility or overall satisfaction they receive from using a product, as well as the minimal operating costs over its life. The main point of differentiation strategy is understanding the needs of customers. In this case, we can say that with a certain set of qualities of an exclusive product or service, the company creates a permanent group of buyers in a specific market segment, i.e. almost a mini-monopoly. Unlike cost leadership strategy, which can only be achieved through an efficient cost structure, differentiation can be achieved in a variety of ways. The main approaches used in the differentiation strategy include: - development of such product characteristics that reduce the buyer’s total costs of operating the manufacturer’s products (increased reliability, quality, energy saving, environmental friendliness); - creation of product features that increase the effectiveness of its use by the consumer (additional functions, complementarity with another product, interchangeability); - giving the product features that increase the level of customer satisfaction (status, image, lifestyle). By the nature of the focus we can distinguish innovative and marketing strategy differentiation. Innovative differentiation An innovative differentiation strategy is a real differentiation associated with the production of truly different products using different technologies. This strategy involves acquiring competitive advantages through the creation of fundamentally new products, technologies or upgrades and modifications of existing products. In this case, differentiation affects not only the product itself, but also the technology being implemented, which requires taking into account the factor of scientific and technological progress. Scientific discoveries and evolving technologies offer new ways to meet consumer needs. Real differentiation is more characteristic of the market for industrial goods and products of high-tech industries, where the largest gap in competition is determined by an effective innovation strategy. Marketing differentiation A marketing differentiation strategy involves achieving competitive advantages by creating distinctive properties associated not with the product itself, but with its price, packaging, delivery methods (without prepayment, with the provision of transport, etc.); placement, promotion, after-sales service (warranties, service), a trademark that creates an image. The presence of distinctive qualities usually requires higher costs, which leads to higher prices. However, successful differentiation allows a firm to achieve greater profitability because consumers are willing to pay for product uniqueness. Differentiation strategies require significant investments in functional marketing and, especially, in advertising in order to convey to consumers information about the claimed distinctive features of the product. Focus strategy A focus (specialization) strategy is a typical business strategy that involves concentrating on a narrow market segment or a specific group of customers, as well as specializing in a certain part of the product and/or geographic region. Here the main goal is to satisfy the needs of the selected segment with greater efficiency in comparison with competitors serving a wider market segment. A successful focus strategy achieves a high market share in the target segment, but always leads to a low market share in the overall market. This strategy is the preferred development option for firms with limited resources. The focus strategy takes the form of a focused low-cost strategy if the price requirements of the segment's buyers differ from those of the main market, or a focused differentiation strategy if the target segment requires unique characteristics goods. Like other basic business strategies, a focus strategy protects a firm from competitive forces in the following ways: focusing on a segment allows it to compete successfully with firms operating in different segments; the firm's specific competencies and capabilities create barriers to entry for potential competitors and the penetration of substitute products; pressure from buyers and suppliers is reduced due to their own reluctance to deal with other, less competent competitors. The reason for choosing such a strategy is the lack or lack of resources, strengthening barriers to entry into the market. Therefore, the focusing strategy is, as a rule, characteristic of small companies5http://www.logistics.ru/9/2/i20_64.htm (accessed January 15, 2011). 2.2 Problems of realizing competitive advantages in the international market Everything that was said above about competition and competitive strategy, can equally apply to both the external and internal markets. At the same time, international competition has some peculiarities. Feature one Each country, to one degree or another, possesses the factors of production necessary for the activities of firms in any industry. The theory of comparative advantage in the Heckscher-Ohlin model is devoted to the comparison of available factors. The country exports goods in the production of which various factors are intensively used. However, factors, as a rule, are not only inherited, but also created, therefore, in order to obtain and develop competitive advantages, it is not so much the stock of factors at the moment that is important, but the speed of their creation. In addition, an abundance of factors can undermine competitive advantage, while a lack of factors can encourage renewal, which can lead to long-term competitive advantage. The combination of factors used differs in different industries. Firms achieve competitive advantage when they have low-cost or high-quality inputs that are important when competing in a particular industry. Thus, Singapore's location on an important trade route between Japan and the Middle East made it the center of the ship repair industry. However, gaining a competitive advantage based on factors depends not so much on their availability as on their effective use, since MNEs can provide missing factors by purchasing or locating operations abroad, and many factors move relatively easily from country to country. Factors are divided into basic and developed. The main factors include natural resources, climatic conditions, geographical location, unskilled labor, etc. The country receives them by inheritance or with minor investments. They are not particularly important for a country's competitive advantage, or the advantage they create is unsustainable. The role of the main factors is reduced due to a reduction in the need for them or due to their increased availability (including as a result of the transfer of activities or procurement abroad). These factors are important in extractive industries and agriculture-related industries. Developed factors include modern infrastructure, highly qualified workforce, etc. It is these factors that have highest value , as they allow you to achieve a higher level of competitive advantage. Feature two The second determinant of national competitive advantage is the demand in the domestic market for goods or services offered by this industry. By influencing economies of scale, demand in the domestic market determines the nature and speed of innovation. The volume and nature of growth in domestic demand allow firms to gain a competitive advantage if: - there is demand abroad for a product that is in great demand in the domestic market; - there are a large number of independent buyers, which creates a more favorable environment for renewal; - domestic demand is growing rapidly, which stimulates the intensification of capital investment and the speed of renewal; - the domestic market is quickly becoming saturated, as a result, competition is becoming tougher, in which the strongest survive, which forces them to enter the foreign market. Firms achieve competitive advantage by internationalizing demand in the domestic market, i.e. when preference is given to foreign consumers. Feature Three The third determinant that determines a national competitive advantage is the presence in the country of supplier industries or related industries that are competitive in the world market. In the presence of competitive supplying industries, the following are possible: - effective and quick access to expensive resources, for example, equipment or skilled labor, etc.; - coordination of suppliers in the domestic market; - assisting the innovation process. National firms benefit most when their suppliers are globally competitive. The presence of competitive related industries in a country often leads to the emergence of new highly developed types of production. Related industries are those in which firms can interact with each other in the process of forming a value chain, as well as industries that deal with complementary products, such as computers and software. Interaction can occur in the field of technology development, production, marketing, and service. If there are related industries in the country that can compete in the world market, access to information exchange and technical cooperation opens up. Geographical proximity and cultural kinship lead to more active exchanges than with foreign firms. Success in the global market of one industry may lead to the development of the production of additional goods and services. For example, the sale of American computers abroad has led to increased demand for American peripherals, software, and the development of American database services. Feature Four The fourth important determinant of industry competitiveness is the fact that firms are created, organized and managed depending on the nature of competition in the domestic market, with different strategies and goals being developed. National characteristics influence the management of firms and the form of competition between them. In Italy, many companies that successfully operate in the global market are small or medium-sized (in size) family businesses. In Germany, large companies with a hierarchical management system are more common. In addition, we can recall the American and Japanese control systems. These national characteristics significantly influence the positions of firms when targeting global competition. Of particular importance for achieving high competitiveness in the industry is strong competition in the domestic market; competition in the domestic market creates advantages for the national industry as a whole, and not just for individual firms. Competitors borrow progressive ideas from each other and develop them, since ideas spread faster within one nation than between different nations. These advantages are enhanced when competitors are concentrated in one geographic area. The role of the government The role of the government in the formation of national advantages lies in the fact that it influences all four determinants: - on the parameters of factors - through subsidies, capital market policies, etc.; - on demand parameters - by establishing various standards and carrying out public procurement; - on the conditions for the development of related industries and supplier industries - through control over advertising media or regulation of infrastructure development; - on the strategy of firms, their structure and competition - through their tax policy, antitrust legislation, by regulating investments and the activities of the securities market, etc. All four determinants can also have the opposite effect on government. The role of government can be positive or negative. The determinants of national competitiveness are a complex system that is in constant development. Some determinants regularly influence others. The action of the system of determinants leads to the fact that competitive national industries are not distributed evenly throughout the economy, but are connected in bundles, or “clusters,” consisting of industries that depend on each other. 2.3 Benchmarking as a strategy for achieving competitive advantage6 http://www.support17.com/component/content/296.html?task=view (accessed January 12, 2011) The term “benchmarking” comes from English word benchmark (bench- place, to mark- mark), is a way of studying the activities of business entities, primarily their competitors, with the aim of using positive experience in their work. Benchmarking includes a set of tools that allow you to systematically find, evaluate and organize the use of all the positive advantages of other people's experience in your work. Benchmarking is based on the idea of ​​comparing the activities of not only competing enterprises, but also leading firms in other industries. Proper use of the experience of competitors and successful companies allows you to reduce costs, increase profits and optimize the choice of strategy for your organization. Benchmarking is a constant study of the best practices of competitors, comparing the company with the created reference model own business . Benchmarking allows you to identify and use in your business what others do better. Benchmarking is based on the concept of continuous performance improvement, which involves a continuous cycle of planning, coordinating, motivating and evaluating actions with the goal of sustainable improvement of the organization's performance. The core of benchmarking is finding the best business standards for use by the research organization. It focuses not on simply measuring and comparing achievements, but on how any given process can be improved by applying best practices. Benchmarking requires a company to be humble enough to accept that someone else may be better at something, and wise enough to try to learn how to catch up and even surpass others' achievements. Benchmarking reflects an organization's continuous improvement efforts and helps integrate disparate improvements into a unified change management system. Types of benchmarking - internal - comparison of the work of company departments; - competitive - comparison of your enterprise with competitors according to various parameters; - general - comparison of the company with indirect competitors according to selected parameters; - functional - comparison by function (sales, purchasing, production, etc.). General benchmarking is a comparison of the production and sales performance of one’s products with the business performance of a sufficiently large number of producers or sellers of a similar product. Such a comparison allows us to outline clear directions for investment activity. The parameters used to compare product characteristics depend on the specific type of product. Functional benchmarking means comparing the performance parameters of individual functions (for example, operations, processes, work methods, etc.) of a seller with similar parameters of the best enterprises (sellers) operating in similar conditions. Competitive benchmarking examines the products, services, and processes of an organization's direct competitors. Benchmarking is close to the concept of marketing intelligence, which means the constant activity of collecting current information about changes in the external marketing environment, necessary for both the development and adjustment of marketing plans. However, marketing intelligence aims to collect confidential information, and benchmarking can be seen as the activity of thinking about strategy based on the best experience of partners and competitors. F. Kotler identifies benchmarking with basic analysis - the process of “searching, studying and mastering the most advanced practices and technologies used by organizations in various countries around the world, with the goal of making your organization more effective.” Benchmarking is becoming a powerful lever for enhancing the competitiveness of an enterprise and the art of understanding how and why some companies achieve significantly more high results than others. With the help of benchmarking, you can improve the best technologies of other companies, i.e. it is aimed at mastering “the most advanced world experience.” CONCLUSION In conditions of fierce competition and a rapidly changing situation, firms must not only focus on the internal state of affairs, but also develop a long-term strategy aimed at creating sustainable competitive advantages. Accelerating changes in the environment, the emergence of new demands and changing consumer positions, changes in government policy, and the entry of new competitors into the market lead to the need for constant analysis and optimization of existing competitive advantages. The most significant or long-term competitive advantage, in my opinion, gives a company the implementation new technology or “know-how” created by the firm itself through innovation. Not every company can create this competitive advantage (the main problem is the lack of sufficient financial and human resources). From the study we can conclude that there is no competitive advantage that is uniform for all companies. Each company is unique in its own way, therefore the process of creating competitive advantages for each company is unique, since it depends on many factors: the company’s position in the market, the dynamics of its development, potential, the behavior of competitors, the characteristics of the goods produced or services provided, the state of the economy , cultural environment and many other factors. At the same time, there are some fundamental points and strategies that allow us to talk about general principles of competitive behavior and implementation strategic planning aimed at creating a sustainable competitive advantage. REFERENCES 1. Azoev G.L., Chelenkov A.P. Competitive advantages of the company. - M.: JSC “Printing House “NEWS”, 2007. 2. Benchmarketing [Electronic resource] 3. Golovikhin S.A., Shipilova S.M. Theoretical foundations determining the competitive advantages of a machine-building enterprise 4. Zakharov A.N., Zokin A.A., Competitiveness of an enterprise: essence, methods of assessment and mechanisms of increase 5. Porter M. “International competition”: trans. from English: ed. V.D. Shchetinina. M.: International relations, 1993 6. Fatkhutdinov R.A. Strategic management. 7th ed., rev. and additional - M.: Delo, 2005. - 448 p. 7. Shifrin M.B. Strategic management. - St. Petersburg: Peter, 2008, p. 113 8. Yagafarova E. F. Abstract of dissertation research on the topic "The role of intellectual capital in the formation of a sustainable competitive advantage of a company"

1. Yagafarova E. F. Abstract of dissertation research on the topic "The role of intellectual capital in the formation of a sustainable competitive advantage of a company" [Electronic resource] URL:
2. S.A. Golovikhin, S.M. Shipilova. Theoretical foundations for determining the competitive advantages of a machine-building enterprise [Electronic resource] URL: http://www.lib.csu.ru/vch/8/2004_01/023.pdf (access date 12/18/2010)
3. Shifrin M.B. Strategic management. - St. Petersburg: Peter, 2008, p. 113
4. Azoev G.L., Chelenkov A.P. Competitive advantages of the company. - M.: JSC “Printing house “NEWS”, 2007.
5. A.N. Zakharov, A.A. Zokin, Competitiveness of an enterprise: essence, methods of assessment and mechanisms for increasing [Electronic resource] URL:

Marketers, when promoting goods and services, tend to extol their merits. But in conditions of fierce competition, this is not enough. The production capabilities of competing companies are approximately the same, so the fight for consumers is won by those who spend money not so much on unique technologies, but on meeting the needs of customers.

In this article you will read:

• Where is the business’s “center of gravity” and why shift it?
• How to ensure the effective use and assessment of an enterprise's competitive advantages
• How to increase sales when the market is stagnant
• How to Quadruple Your Revenue with Pass-and-Tie Reception

Leveraging Competitive Advantages with a competent approach ensures the success of the company. However, the main difficulty in this matter is the effective assessment of the competitive advantages of an enterprise, the goal of which is to correctly determine the “center of gravity.”

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Customers choose not the product itself, but what accompanies the purchase - intangible, but important values(trust in the brand, reliability of delivery, quality of service, etc.). To understand how well your company is using competitive advantages, ask yourself three questions.

1. Where do you spend most of your costs - on production and R&D or on attracting and retaining customers?

2. What do consumers value your company most for?

3. Is your competitive advantage based on the product itself or on effective interactions with customers?

By answering these questions and understanding where the “center of gravity” of your company is compared to other players in the market, you will be able to determine the degree of your competitiveness and the main vector of business development. It is important to remember one thing: those companies that have not yet managed to refocus on consumer values ​​will soon face the depersonalization of products, declining revenues, customer outflows and diminishing influence in the industry. And those companies that are able to shift the “center of gravity” from the product to the consumer will become leaders.

Example 1: Added value of the product

Nestlé has been a leader in the coffee industry for many years. However, at the end of the 20th century, competing products became similar to each other, and instant coffee consumers stopped paying attention to brands. In the struggle for customers, other major players - Tesco, Procter & Gamble, Starbucks, etc. - waged a price war among themselves and sought in various ways attract coffee lovers.

Despite tough competition, the new Nestlé CEO decided to increase sales growth from 2 to 4%. It was impossible to do this using the existing product - then management created a new product with additional consumer value.

What consumers are willing to pay for. In 1974, the company acquired the patent for the production of the Nespresso coffee machine and over the course of 25 years brought this system to perfection, eliminating shortcomings and bringing it to the market. Until the beginning of the 21st century, this product was not in widespread demand. However, when a new consumer trend appeared on the market - gourmet coffee - Nestlé decided that this particular product would help strengthen its position in the industry and overtake competitors.

• Information about competitors: 3 rules for its collection and use

Any coffee machine owner could brew high-quality espresso at home using aluminum capsules. Thanks to this, there was no need to constantly clean the device from remnants of ground coffee. This became the additional consumer value for which buyers were willing to pay.

How to position a new product. They decided to present the coffee machine as a premium product for brewing coffee at home. This approach was unusual for a company that typically sold consumer goods in large quantities in retail chains and at low prices, using wide advertising campaigns. However, to develop a new market, it was necessary to change not only the distribution of the product, but also the interaction with customers.

Coffee machines could be purchased at large shopping centers and specialized stores of household appliances. However, the capsules were sold only in the Nespresso Club - a community of users registered on a specialized website. Thanks to the fact that each customer left their contact information when ordering, the company was able to manage consumer behavior and find out the answer to main question marketing: who, when and at what price buys the product?

The company's managers are confident that the consumer club (12 million users) is its main competitive advantage, preventing other players from conquering the coffee industry.

Result. Today, coffee capsules account for 20 to 40% of the financial volume of the European coffee market, whose size is estimated at $17 billion. This segment is growing by 30% annually worldwide. The company’s customer focus has noticeably increased: 70% of employees have personal contact with customers who order capsules on the brand’s website.

Example 2. No risks when purchasing

Ask yourself: “Why aren’t potential customers buying from us?” After all, the likely target audience is those people or companies that should become your clients, but for some reason prefer competitors. Perhaps it's all about the costs or risks of the purchase. If you remove these barriers and give customers a great deal, they'll be more likely to choose you. Remember, the consumer is willing to pay a fairly high price to reduce their risks.

• Risk Management: 13 Practical Steps

How to solve the problem. During the 2008–2009 recession, car sales fell sharply around the world, especially in the United States. Many automakers (such as General Motors and Chrysler) were forced to cut prices and make huge discounts. Hyundai also suffered significant losses as its vehicles target lower-middle-income consumers. But a way out was found.

The company understood why people stopped buying: they were simply afraid that they would not be able to pay off their car loan on time. Then in January 2009, the company announced that it would minimize the risks when buying a car. If the buyer lost his job or income within a year of the purchase, he could return the product without any impact on his credit score.

Result. In the first month of the program, the company's sales almost doubled, while industrywide revenue decreased by 37%. Hyndai sold more cars than Chrysler, which had four times the dealer network.

Example 3. Pattern of consumer behavior

Marketers create as detailed a portrait of each consumer as possible, remembering their preferences. On the one hand, this allows you to quite accurately predict what and when a specific client will buy, as well as manage his behavior. On the other hand, today these weapons are used by many companies. Therefore, you and your competitors will spend a lot of money and time trying to lure customers away from each other.

Instead of carefully developing a customer profile and chasing his next order, try to identify the connection between consumer behavior in the media space and purchasing habits. This will help track customer actions, analyze their brand loyalty and evaluate their influence on other consumers.

• Competitors in trade: how to protect your ideas

Such market information can be converted into additional customer value using, for example, the transfer and link technique. It allows, in particular, to learn from one client and use this knowledge to help another. Thus, you are, as it were, an intermediary between two parties who can benefit from dating.

How to use the information. Amazon, which began as a bookstore, has become one of the largest online platforms in the world in just 15 years, bringing together many large-scale companies from other industries. The reason is that not only can you buy anything on Amazon, but you can also get detailed information about each product that is not available in traditional stores, get the opinions of other shoppers, and understand what people with similar tastes are buying.

• Competitive intelligence: how to beat everyone with creativity

This additional consumer value is in demand among 200 million people in the world. Because Amazon analyzes each customer's purchase history and compares it with data from other consumers, the company gets an overall picture of purchasing behavior and makes precise, targeted recommendations for each visitor.

Result. Amazon's revenue, which was just over $10 billion, has quadrupled since 2006, amid a deep recession in the United States. And since 2005, the company has been ranked first or second in the online shopping category in ForeSee's annual Consumer Satisfaction ranking. The second leader on the list is Netflix, whose recommendation system, like Amazon's, has become a long-term competitive advantage.

Davar N. Ideal marketing: what 98% of marketers forgot about / [Trans. from English]. - M.: Alpina Publisher, 2015. - 214 p.

More and more often in texts on websites I see subheadings in the style a la “Why us?”, under which lists like this are inserted:

We are a dynamically developing company

We use only advanced technologies

We employ professionals in their field

And so on... At first glance, it seems like text and text, what’s wrong with that: everyone writes like that. But let's look at this text more closely. This list is supposed to highlight competitive advantages. Competitive advantages are what differentiate a company from others.

Now tell me what adequate competitor would write:

Our company stands still and does not develop

The quality of our services is complete trash

We have the most shabby technologies and archaic approaches

We employ only laymen and amateurs

We bring all clients under the same brush

Exactly! Nobody will write like that. So it turns out that the advantages described in the first list are not advantages at all, since competitors also write about the same thing.

But that's not all

And now the most interesting thing... In general, it is believed that the company’s advantages should help the consumer in making a choice. Therefore, they must tell the consumer what he gets by choosing a particular brand. However, when companies everywhere shout: “We are this..., we are that... and we also have... how great we are!”, the consumer has a logical question: “Wait a minute, guys, where am I?”

Lack of customer focus is the most common mistake made by most benefit writers. At the same time, special unique people manage to present the height of “creativity” instead of specificity and accessibility, which introduces even more confusion. For example:

We make foie gras from liverwort for our clients.

We clone ourselves to solve any problem

We ignore the laws of space-time continuum

Etc. However, you can dwell on the shortcomings as much as you like. Let's take a closer look at how to properly describe benefits.

How to correctly describe the company's advantages

For example:

“We use only advanced technologies”

Changes to

“You save your time because we use only advanced technologies”

2. In addition, the more specific the benefits are, the stronger they will be.

For example:

We provide the highest quality services

Changes to

“You are protected as a consumer. The quality of our services complies with international quality standards ISO 0889.25 and ISO 0978.18. In addition, each of our services comes with a 2-year warranty.”

3. Explicitly indicate differences

Another effective tactic is to point out differences head-on. However, in this case you also need to be as specific as possible. For example:

“What sets us apart from our competitors is that:

Our bank and its partners have over 5,000 ATMs installed in the city of N, which means you will not experience any problems with withdrawing cash.

Our bank has established partnerships with banks in neighboring countries, which means that you will be able to freely enter adjacent markets.”

☑ HINT: the above example can be strengthened by putting the second part (with benefit) at the beginning, and the property of the bank at the end of the sentence, connecting with the conjunction “because”.

☑ SUMMARY:

So, if you want to convey a company's benefits as a working marketing tool rather than just a hymn, try to make them specific and customer-focused. Avoid empty clichés and describe the benefits, accompanying them with numbers, facts and cases.