⏱ reading time: 15 minutes

The goal of a marketing strategy is to understand and deal with the competition. Some companies are always ahead of others. Industry affiliation does not matter - the gap in the profitability of companies within the same industry is higher than the differences between industries.

Differences between companies are especially important in times of crisis, when the competitive advantage created is an excellent foundation for profitable growth.

Competitive advantages of the company

• Advantage Any success factor that increases a consumer's willingness to pay or reduces a company's costs.
• Competitive advantage- a significant success factor for the consumer, in which the company surpasses all competitors

Building a competitive advantage means achieving a larger gap between costs and the buyer's willingness to pay for a product than competitors.

Step 1. Determine success factors

The answer to the question “how to create a competitive advantage for a company” is not so important. If you are confident that you will achieve superiority over competitors through 24/7 delivery, then you will find a solution for how to realize this competitive advantage. It is much more difficult to determine what exactly they will become.

To do this, first of all, we write out all the advantages, or success factors, that are important for buyers. For example, here are.

Step 2. Segmenting the target audience

A separate shuttle for business class passengers is an advantage. But the achievement of this competitive advantage is completely indifferent for those flying in the "economy" segment. The definition of competitive advantages always takes place for a specific segment of the target audience - with its specific needs and desires.

The decision to sell to “everyone” leads to the question of where to look for these “everyone” and what to offer them. It turns out that “everyone” must be searched “everywhere” and offered “everything”. Such a strategy will kill the budget of any company.

Take the example of achieving competitive advantage for a flower company. Among the target audience, we will single out segments of those who buy flowers impulsively, prepare a pre-planned gift, or, say, decorate houses.

Having determined for whom we are going to form a competitive advantage, we will evaluate whether it is worth it - we will give an assessment of the market capacity and the intensity of competition in each segment.

Read more about segmentation criteria in our article: ""

Step 3. Identify Key Success Factors

The buyer is demanding. For him, many factors are important - from the consultant's smile and website design to low prices. But if the buyer wants something, this does not mean at all that he is ready to pay for it.

The significance of competitive advantage is the willingness of the buyer to pay for it. The more money they are willing to pay for the development of a competitive advantage, the higher its importance.

Our task is to form a very short list of key success factors that can determine the company's competitive advantages from a long list of various "wants" of the consumer.

In our example, the key success factors are the same for all three target audience segments. In real life, each segment usually has 1-2 of its own factors.

Step 4. Assess the importance of key success factors for target audience segments

What is important for one segment of the target audience may be a weak competitive advantage for consumers from another segment.

If you got the idea to buy flowers to give them this evening, then for an impulsive decision, the main thing is the appearance (fullness of the bud opening) and the speed of the purchase. This is more important than the ability to choose from a large assortment, the life span of a bouquet - it is necessary that the flowers are and look good that particular evening.

The opposite situation is buying flowers to decorate the house. Delivery does not "burn", but the question of how long the flowers will last comes to the fore.

Therefore, the importance of key success factors is determined for each segment of the target audience separately.

*) we clarify - KFU are taken as an example, close to life, but not reflecting the real case.

For our company, determining the right competitive advantages that allow our customers to attract more consumers, get more money from them and interact with them for longer is one of the main blocks of the developed marketing strategy. Therefore, in we are striving to achieve an ideal situation - when each cell of all the tables in this article is expressed in money. It is possible to create a working marketing strategy only by understanding the cost of CFU from the point of view of the buyer, the market volume, costs, etc.

All this information is available. But sometimes there is no time or resources for this. Then we advise you to use a comparison on a 5 or 10-point scale. In this case, remember that any factual data is better than guesswork. Hypotheses need to be put forward based on the big data of the company, monitoring customer reviews, observing the process of selling competitors, and not taking it out of your head “because it seems so to me”. Expert forecasts too often do not work.

Step 5. Compare achieved competitive advantages

At this point, we figured out what is important for your consumers. This is good. It's bad that competitors are also in the know.

To understand the starting conditions, it is necessary to assess the current degree of development of the company's competitive advantages. Strictly speaking, you have a competitive advantage only when your offer outperforms all direct competitors in some key success factor.

The assessment of competitive advantages is made exclusively from the point of view of consumers. The opinion of the company's employees, and especially the management, does not say anything. The director may be proud of the site developed according to his idea, on which millions have been spent, but this in no way indicates the convenience of the site for clients.

Step 6. Identify sources of competitive advantage

Any competitive advantage is the result of the company's activities. Each action incurs costs and at the same time affects the buyer's willingness to purchase the product. Differences in the results of these actions form competitive advantages.

Therefore, we make a list of all the activities of the company by desegregating its activities into separate processes. In projects, we start the analysis with the activities that are necessary to produce the basic product or service, and only then add related activities.

Step 7. Linking key success factors and company performance

Competitive advantage is formed at the intersection of various activities. For example, the growth of the assortment in the flower trade requires an increase in working capital, the availability of storage space for products, sufficient area of ​​points of sale, additional qualification of sellers and service personnel, etc.

We determine which business processes are associated with the development of each of the found competitive advantages and the size of their contribution.

Step 8. Estimate the company's costs of creating competitive advantages

At this step, we look at how much it costs to achieve a competitive advantage. Any activity of the company has its costs.

In our example, we evaluate the level of costs on a scale of 1 to 10, but in real life, a company must know its costs more or less accurately. Pay attention to the calculation methodology - usually accountants tend to record most of the costs in production, thereby reducing indirect costs.

Having understood the size of the costs, we determine their drivers. Why are the costs the way they are? Maybe we pay a lot for shipping because the size of the business is small and we do not have enough cargo? There are many cost drivers. They depend on the size of the firm, its geographical location, institutional factors, access to resources, etc.

Cost driver analysis helps to assess the costs of competitors to create a similar competitive advantage. It is difficult to obtain data directly, but by understanding the drivers that affect the amount of costs, one can assume the level of expenses of competitors.

Step 9. Looking for resources to create a competitive advantage

Maintaining the achieved competitive superiority at a constant level is possible only if there are sufficient resources. In addition, the analysis of the resources available to the company helps to choose the area of ​​rapid formation of competitive advantage.

Step 10. Choose a direction for developing a competitive advantage

We look at the two resulting final pictures and reflect. There are only three possibilities for achieving competitive advantage:

• increase willingness to buy a product without raising costs too much
• sharply reduce costs, with little effect on willingness to buy
• increase willingness to buy and reduce costs at the same time.

The third direction looks the most attractive. But finding such a solution is extremely difficult. Typically, companies simply waste valuable resources trying to build competitive advantage across the board.

Basic rules for determining competitive advantage.

• We are looking for options that create the largest gap between the buyer's willingness to pay and our costs.
• We do not try to select all attractive options at once. Having decided to occupy one peak, we will not climb another. It is most profitable to choose a peak that is not crowded with competitors.
• We remember competitors, what drives each of them. If you decide to change some business process, how will your closest competitor react?

• success factors. The more you find, the better. Habit managers typically focus on a few product features. This reduces the perception of the benefits that the consumer receives and brings your marketing strategy closer to that of competitors. To find competitive advantages that aren't as competitive, think about the benefits the company creates for all of its stakeholders: customers, employees, suppliers, dealers, and so on.
• Key success factors. The more significant the factor, the more restructuring of the company's activities it requires. If you are not among the industry leaders, it is better not to try to immediately compete on the main factors, or groups of factors ("best in quality")
• Market. The question should not be “can we create a competitive advantage for this segment of the target audience”, but “can we create a competitive advantage for this segment of the target audience and remain profitable.” Having current costs in hand, we assume how much the company will pay for turning a key success factor into a full-fledged competitive advantage
• Current competitive position. It is difficult to build up a competitive advantage in which you are hopelessly behind. Especially if it is a capital-intensive or time-consuming process.
• Costs. Competitive advantage can be gained by focusing on costs that differ most from competitors, are large enough to affect the overall cost structure, and are associated with separate activities.

Fear often hinders competitive advantage. The desire to become the best will necessarily entail an increase in prices or, conversely, a decrease in the desire to buy our product. Reducing costs reduces the desire of the client to use our service (a ticket for a low-cost airline is cheap, but you can’t take luggage with you, there is no food, airports are far away). Improving product performance leads to higher costs. This is absolutely normal. The only important thing is to widen the gap between the buyer's willingness to pay and the company's costs.

Step 11. We create competitive advantages by changing the company's actions

As I wrote above, the creation of competitive advantages is the result of the company's actions. In order for the offer to surpass all competitors, it is necessary to reconfigure some of the activities.

For example, achieving a competitive advantage "low cost". It is pointless to try to compete with a discounter by simply cutting prices. A successful discounter has become so because much of the company's activities are dedicated to creating this competitive advantage. If a Walmart employee wants to borrow a new pen, he or she returns the old one. There are no trifles in creating a competitive advantage.

Again, we look at the connection between the chosen competitive advantage and the company's activities. Where is this competitive advantage created? And we invest in the development of selected business processes.

Ask yourself the following questions

• Are our actions different from those of our competitors?
• Are we doing the same things but in a different way?
• How can we change our set of activities to gain a competitive advantage?

As a result, determine the minimum and sufficient set of activities that the company must perform in order to form a competitive advantage. Usually they try to copy only obvious things, forgetting that much is hidden under water. It is the complex of activities that creates a competitive advantage that cannot be copied.

Actions aimed at developing a competitive advantage should be linked by a single logic. A classic example of M. Porter is SouthWest Airlines' set of actions that created its competitive advantage. As a result, the airline was the only low-cost carrier on the market for 25 years. It is impossible to achieve a similar competitive advantage with a swoop.

In fact, this is the marketing strategy. Such a set of actions is almost impossible to copy and surpass.

Talk about the number of completed projects, the volume of products released, publish successful cases. It is very important not to slide into self-praise, but to show how much real value your products or services have brought.

Are your services useful? Tell about it!

Post testimonials from real customers with links to their social media profiles/company websites so that a potential customer can get confirmation. 90% of people won't verify the authenticity of these reviews, but being open on your part will build their trust.

High level of quality/service

And the standard continuation: "Our company employs highly qualified specialists who have undergone special training."

At all qualification of specialists does not speak about the level of service, unless your employees were trained in courses "How to lick a client."

Take an example from hotels for which international service standards have been developed. A person, entering a three-star hotel, already roughly imagines what awaits him: a room with an area of ​​​​at least 12 square meters. m, free bottled water, bathroom with towels, soap and toilet paper.

What awaits the client in your company?

Write to him how quickly they will repair or deliver the goods. Explain how a personal manager will work on solving his problem - step by step, from receiving an application to the result. Convince him that even after completing the order you are always ready to help.

Imagine that you are calling a company about a major contract, and the sales rep replies, "We're having lunch, call me later." And hangs up. Will you call him back or find another supplier?

If the company's employees are not polite and friendly, your "high level of service" is worthless.

What are your employees good at?

And if you want to brag about the professionalism of your employees, tell us about them separately: where they got their qualifications, how long they have been working in their specialty and what they can do.

Individual approach

This expression has not convinced potential customers for a long time, it is so hackneyed. Most often, they simply don’t notice him, and if they notice him, they grin skeptically, mentally saying “well, well, of course.”

Don't believe? Look at your competitors' websites - 99 times out of 100 you will find this phrase, if not on the "About" page, then on some other.

Replace common phrases with specific information.

List everything you rely on when developing a project or completing an order. Explain what you mean by the concept of "individual approach".

For sure, put the fulfillment of the wishes of the customer in the first place. But you understand that others do the same. Agree, it is difficult to imagine a designer who makes a red kitchen for clients who dream of green.

Show HOW you fulfill the desires of customers

write, What is included in your customer relationship system? →

• How do you meet the needs of each client, depending on the characteristics of their tasks. What exactly do you consider when developing a project or completing an order.

• What additional terms of cooperation at the discretion of the client can you include in a standard contract: different payment schemes, individual discounts, delivery, assembly.

• How broad is the authority of the client who wants to participate in the process or observe it with the possibility of adjustment. At what point wishes are no longer accepted.

Low prices and/or great deals

Another "nothing" stamp. And if you consider that not only low, but also high prices can drive sales with equal success, then this advantage becomes completely useless.

Trying to hook a customer with low prices? Do not do it this way!

Instead of empty words use honest numbers.

For example: we offer Scandinavian-style kitchens at a price of 20,000 rubles per square meter, the basic package includes standard sections, a countertop, a sink, and a dish dryer.

Or: in January, we reduce the cost of the Shikardos collection by 30% - when ordering a kitchen 3 meters long, you save 25,000 rubles.

Most often, low prices are spoken by those companies that have nothing else to hook the client with. Do not deny the buyer the minimum mathematical ability. Believe me, he will do a great job comparing prices on his own.

When choosing a product, the buyer compares several alternative (not identical!) Options:

• wooden houses - with brick and aerated concrete
• white gold jewelry - with silver and platinum
• facial mesotherapy - with sculptural massage and plasma lifting.

Make a comparison table, according to the results of which your offer wins as the safest, fastest, most durable (warm, prestigious, comfortable - pick the advantages of your product or service). And then the price will fade into the background.

A wide range of

These 18 characters without spaces will only become an advantage when the client sees them as a solution to their problems →

Decipher what gives a wide range

• Possibility to choose from a certain assortment group. You can offer dozens or even hundreds of gold rings, but the buyer is interested in a specific size. And if it does not appear on the showcase of an online store, for the client the slogan about the richness of the assortment will remain zilch. Initially, a loyal visitor will go to competitors next time, so as not to be disappointed again.

• Opportunity to purchase related products- a lid for a frying pan, a brush for collecting animal hair - for a vacuum cleaner, wipes for cleaning the screen - for a monitor. This is beneficial for both parties. The client buys everything in one place and saves on delivery, the seller increases profits by 5-15%.

• Possibility to order a turnkey service. When you talk about a wide range of company services, list them. Specify which of them you provide separately, and which - only in the complex. For example, a consulting company performs naming exclusively as part of a multi-stage company registration service, while assistance in preparing documents may be outside of it.

Often a list of useless benefits is placed in the "About Us" section. Already fixed? Great! Now check if you used all the methods of persuading customers on the "About" page. Look for arguments that are right on target.

And in the comments, admit it, often professional professionals with an individual approach work in your companies? 😉

About the author.

Strategic management is designed to ensure the survival of the company in the long term. Of course, when it comes to survival in a competitive market environment, there is no question that the company can drag out a miserable existence. It is very important to understand that as soon as someone from those who are associated with the company, this connection becomes not a joy, he moves away from the company, and after a while it dies. Therefore, survival in the long term automatically means that the company is quite successfully coping with its tasks, bringing satisfaction to those who enter into the sphere of its business interaction with its activities. First of all, this applies to customers, employees of the company and its owners.

The concept of competitive advantage

How can an organization ensure its long-term survival, which must be inherent in it so that it can cope with its tasks? The answer to this question is quite obvious: the organization must produce a product that will consistently find buyers. This means that the product must be, firstly, so interesting to the buyer that he is ready to give money for it, and, secondly, more interesting to the buyer than a product similar or similar in consumer qualities produced by other firms. If a product has these two properties, then the product is said to have competitive advantages.

Therefore, a firm can successfully exist and develop only if its product has competitive advantages. Strategic management is called upon to create competitive advantages.

Consideration of the issue of creating and maintaining competitive advantages involves an analysis of the relationship and, accordingly, the interaction of three subjects of the market environment. The first subject is “our” company that produces a certain product. ect is a buyer who may or may not buy this product. The third killer is competitors who are ready to sell their products to the buyer that can satisfy the same need that and a product manufactured by "our" firm. The main thing in this market "love" triangle is the buyer. Therefore, the competitive advantages of a product are the value for the buyer contained in the product, which encourages him to buy this product. Competitive advantage does not necessarily arise from comparing "our" firm's product with competitors' products. It may be that there are no firms on the market offering a competitive product, yet the product of “our” firm is not for sale. This means that it does not have sufficient value for the buyer or competitive advantages.

Types of competitive advantages

What creates competitive advantage? It is believed that there are two possibilities for this. First, the product itself can have competitive advantages. One kind of competitive advantage of a product is its price feature. Very often, the buyer purchases a product only because it is cheaper than other products with similar consumer properties. Sometimes a product is bought just because it is very cheap. Such purchases can occur even if the product has no utility for the buyer.

The second type of competitive advantage is differentiation. In this case, we are talking about the fact that the product has distinctive features that make it attractive to the buyer. Differentiation is not necessarily related to the consumer (utilitarian) qualities of the product (reliability, ease of use, good functional characteristics, etc.). It can be achieved at the expense of such characteristics that have nothing to do with its utilitarian consumer properties, for example, at the expense of the brand.

Second, in addition to creating a competitive advantage in a product, a firm may be trying to create a competitive advantage in its product. market position. This is achieved by securing the buyer, or, in other words, by monopolizing part of the market. In principle, this situation is contrary to market relations, since in it the buyer is deprived of the opportunity to choose. However, in real practice, many firms manage not only to create such a competitive advantage for their product, but also to maintain it for a long time.

Strategy for creating competitive advantage

There are three strategies for creating competitive advantage. The first strategy is price leadership. With this strategy, the focus of the firm in the development and production of the product is cost. The main sources of creating price advantages are:

Rational business management based on accumulated experience;

Economies of scale by reducing costs per unit of output with an increase in production volume;

Savings on diversity as a result of cost reduction due to the synergistic effect that occurs in the production of various products;

Optimization of intra-company communications, contributing to the reduction of company-wide costs;

Integration of distribution networks and supply systems;

Optimization of the company's activities in time;

The geographic location of the company's activities, which allows to achieve cost reduction through the use of local features.

Bringing to life pricing strategy To create a competitive advantage for a product, the firm should not forget that its product must at the same time meet a certain level of differentiation. Only in this case, price leadership can bring a significant effect. If the quality of the price leader's product is significantly lower than the quality of similar products, then creating a price competitive advantage may require such a strong price reduction that it can lead to negative consequences for the firm. However, it should be borne in mind that the price leadership strategy and the differentiation strategy should not be mixed, and even more so should not be attempted to implement them at the same time.

Differentiationis the second strategy for creating competitive advantage. With this strategy, the firm tries to give the product something distinctive, unusual, that the buyer may like and for which the buyer is willing to pay. A differentiation strategy aims to make a product different from what competitors do. To achieve this, the firm has to go beyond the functional properties of the product.

Firms do not necessarily use differentiation to gain a price premium. Differentiation can help expand sales by increasing the number of products sold, or by stabilizing consumption, regardless of fluctuations in market demand.

In the case of implementing a strategy for creating competitive advantages through differentiation, it is very important to focus on consumer priorities and the interests of the buyer. Earlier it was said that the differentiation strategy involves creating a product that is unique in its own way, different from the products of competitors. But it is important to remember that in order to have a competitive advantage, it is necessary that the unusualness of the product, its novelty or uniqueness be of value to the buyer. Therefore, the differentiation strategy assumes, as a starting point, the study of the interests of the consumer. For this you need:

It is enough to clearly present not just who the buyer is, but who makes the decision on the purchase;

To study consumer criteria by which a choice is made when purchasing a product (price, functional properties, guarantees, delivery time, etc.);

Determine the factors that shape the buyer's idea of ​​the product (sources of information about the properties of the product, image, etc.).

After that, based on the ability to create a product of an appropriate degree of differentiation and an appropriate price (the price should allow the buyer to purchase a differentiated product), the company can begin to develop and manufacture this product.

A third strategy that a firm can use to create competitive advantage in its product is focus on the interests of specific consumers. In this case, the company creates its product specifically for specific customers. Concentrated product creation is associated with the fact that either some unusual need of a certain group of people is satisfied (in this case, the firm's product is very specialized), or a specific system of access to the product is created (the system for selling and delivering the product). By pursuing a strategy of concentrated creation of competitive advantages, the firm can use both price attraction of buyers and differentiation at the same time.

As can be seen, all three strategies for creating competitive advantages have significant distinctive features that allow us to conclude that the company must clearly define for itself what strategy it is going to implement, and in no case mix these strategies. At the same time, it should be noted that there is a certain relationship between these strategies, and this should also be taken into account by firms when creating competitive advantages.

Navigation

« »

Course work

Competitive advantages of the enterprise

Introduction

1. Theoretical foundations of the competitive advantages of an enterprise

1.1 The concept and essence of competitive advantages

2.2 Organizational structure of OJSC “Arnest”

Conclusion

Since a typical mistake in the analysis of this problem is the confusion of the concepts of competitiveness and competitive advantage, therefore, we will clarify these concepts.

“The competitiveness of a product is an integral comparative characteristic of a product, a comprehensive assessment of its parameters (consumer, economic, organizational and commercial) in relation to market requirements or parameters of similar products. The real competitiveness of a product is determined only by comparing its parameters that are significant for consumers with the characteristics and terms of sale of similar competing products. ”

“Competitiveness is a property of an object, characterized by the degree of actual or potential satisfaction of a specific need by it in comparison with similar objects presented on the market. Competitiveness determines the ability to withstand competition in comparison with similar objects in a given market. ”

Competitiveness of the company - the ability to compete in the market with other manufacturers and suppliers of similar products, both in terms of the degree to which their goods or services meet the specific needs of customers, and in terms of business efficiency. It is most often evaluated by the company's specialists, and competitive advantages are evaluated by consumers who compare the offers of the company and its competitors. In this sense, the concept of competitive advantage is also relative. Competitive advantages make it possible to achieve greater consumer loyalty; accordingly, they largely determine the company's competition strategy, i.e. the way she competes.

“Competitive advantage is the distinctive features of a company and its product in the eyes of consumers. ”

“Competitive advantages of subjects can be hereditary, constructive, technological, informational, qualification, managerial, natural and climatic, etc.”

“The competitive advantage of a system is any exclusive value that a system possesses that gives it superiority over its competitors. ”

“Key competitive success factors are commonly referred to as factors arising from market requirements that can give the company an advantage over its competitors. ”

“Rivalry among existing competitors often comes down to striving to achieve an advantageous position by all means, using the tactics of price competition, promotion of the product on the market and intensive advertising. “

“Knowledge of the company's capabilities and sources of competitive influence will allow you to identify areas where the company can go into open confrontation with competitors, and where it can avoid it. If a company is a low-cost producer, it will be able to oppose the power of consumers because it will be able to sell them products that are not vulnerable to substitute products. ”

The sources of competitive advantage are diverse, but most often they are based on:

On operational efficiency, i.e. performing similar activities better than competitors (quality of service or product quality, hours of operation and location, speed of service, cost advantage, etc.);

Strategic positioning, i.e. carrying out activities that are separate from competitors or carrying out similar activities, but in other ways. Strategic positioning is based on a competitive advantage (key competitive advantage). This may be the uniqueness of a product or service, brand image, technological leadership, a unique combination of activities, etc.

So, the company's offer must be meaningful to consumers in order to be classified as a competitive advantage. However, the degree of significance varies.

“For a particular factor to become a competitive advantage for a company, it must be of key importance to consumers and at the same time be based on the uniqueness of the company's business. ”

The most cited author in foreign and domestic literature on the theory of competition, management of competitive advantages is M. Porter. In the next paragraph of the course work, Michael Porter's theory of competitive advantage will be considered.

1.2 Michael Porter's Theory of Competitive Advantage

To survive or win in tough competition, any system must have certain advantages over its competitors. In recent years, almost every book on competition, competitive advantage, or competitiveness has referenced Michael Porter's seminal book International Competition.

M. Porter proposed a set of typical strategies based on the idea that each of them is based on a competitive advantage and the company must achieve it by choosing its own strategy. It must decide what type of competitive advantage it wants to gain and in what area.

“Thus, the first component of the strategic choice under this model is a competitive advantage, which is divided into two main types: lower costs and product differentiation. ”

“Low costs reflect a firm's ability to develop, produce, and sell a comparable product at a lower cost than a competitor. Selling goods at the same (or approximately the same) price as competitors, the company in this case receives a large profit. ”

Differentiation is the ability to provide the customer with a unique and greater value in the form of a new product quality, special consumer properties or after-sales service. Differentiation allows the firm to dictate high prices, which, at equal costs with competitors, provides greater profits.

Difficult, but still possible to gain a competitive advantage based on both lower costs and differentiation. However, any effective strategy must pay attention to all types of competitive advantage, although not strictly adhering to one of them. A firm focusing on low costs must still provide acceptable quality and service. In the same way, the product of a firm that produces differentiated products should not be so expensive as competitors' products as to be detrimental to the firm.

“The competitive advantage of a firm is determined by how clearly it can organize relationships with suppliers and customers. By better organizing these connections, the firm can gain a competitive advantage. Regular and timely deliveries can reduce a firm's operating costs and reduce inventory requirements. These links occur when the method of one activity affects the cost or efficiency of others. »

Relationships often lead to the fact that the additional costs of "fitting" individual activities to each other pay off in the future. Firms must incur such costs in line with their strategy in the name of competitive advantage.

M. Porter notes that firms get a competitive advantage:

Based in those countries that allow the most rapid accumulation of specialized resources and skills;

If the home country of the firm has more accessible and accurate information about the needs for goods and technologies;

If permanent investment is possible;

If the interests of owners, managers and staff coincide.

“Thus, one of the main goals of many organizations is to achieve an advantage over its direct competitors. The central question is this: how will the organization obtain this advantage? M. Porter answers this important question by highlighting key general strategies. ”

Three such strategies are cost leadership, individualization, and focus. Each of them will be discussed in the next section of the course work.

1.3 Strategies for achieving competitive advantage according to M. Porter

Strategies for achieving competitive advantages belong to the group of competitive strategies, which also include strategies for behavior in a competitive environment. Each of these strategies is based on the need to achieve a certain competitive advantage.

“Competitive advantages here are understood as the unique tangible or intangible assets of the company or special competence in areas of activity that are important for this business (equipment, trademark, ownership of raw materials, flexibility, adaptability, staff qualifications, etc.). ”

Note that the competitive advantages of modern firms do not always relate to production technology, very often they move to the stage of marketing, service, R&D, managerial and financial innovations. Competitive advantages are usually realized at the level of strategic business units. Consider the features of the main strategies for achieving competitive advantages.

Analysis of the competitive environment and determination of the competitive position of the organization involves determining the complexity and dynamism of the competitive environment. The universal methods of such analysis are the five forces model of M. Porter and the cost analysis of competitors.

The five forces model involves conducting a structural analysis based on determining the intensity of competition and studying the threat of potential competitors entering the market, the power of buyers, the power of suppliers, the threat from substitutes for a product or service.

Competitor cost analysis boils down to identifying the strategic factors driving cost, cost analysis itself, and competitor cost modeling.

“To obtain a competitive advantage, a firm can use three general competitive strategies: cost leadership (the task is to achieve cost leadership in a particular area through a set of measures to control them), individualization (it is supposed to achieve a product or service organization's distinctness from competitors' products or services). in this area), focusing (the task is to focus on a specific group, market segment or geographic region). ”

Cost Leadership. When implementing this strategy, the task is to achieve leadership in terms of costs in their industry through a set of functional measures aimed at solving this particular problem. As a strategy, it involves tight control over costs and overheads, minimizing spending in areas such as research and development, advertising, etc. There is also a need for a whole layer of buyers who feel the advantage of low costs, expressed in prices.

A low cost position gives an organization good returns in its industry even if there is fierce competition in its industry. A cost leadership strategy often creates a new basis for competition in industries where fierce competition in various forms has already been established.

Individualization. This strategy involves differentiating an organization's product or service from those offered by competitors in the industry. As Porter shows, the approach to personalization can take many forms, including image, brand, technology, distinctive features, special customer service, and so on.

Customization requires serious research and development as well as marketing. In addition, buyers should give their liking to any product as something unique. The potential risk of the strategy is a change in the market or the release of analogues, which can be initiated by competitors, which will destroy any competitive advantage that the company has already achieved.

“A focus strategy involves choosing a narrow segment or group of segments in an industry and meeting the needs of that segment more effectively than competitors serving a broader market segment can do. The focus strategy can be applied by both the cost leader serving a given segment and the differentiator that meets the special requirements of a market segment in a way that allows for high pricing. ”

So firms can compete broadly (serving multiple segments) or focus narrowly (targeted action). Both options for the focus strategy are based on the differences between the target and the rest of the industry segments. It is these differences that can be called the reason for the formation of a segment that is poorly served by competitors that carry out large-scale activities and do not have the ability to adapt to the specific needs of this segment. A cost-focused firm may outperform a consumer-oriented firm by its ability to eliminate "excesses" that are not valued in that segment.

If this strategy is chosen, the main task is to concentrate on a specific group of consumers, a market segment or a geographically isolated market. The idea is to serve a specific target well, not the industry as a whole.

It is assumed that the organization will thus be able to serve a narrow target group better than its competitors. This position provides protection against all competitive forces. Focusing can also mean cost leadership or product/service customization.

1.4 Strategies for achieving competitive advantage according to F. Kotler

F. Kotler offers his own classification of competitive strategies based on the market share owned by the enterprise (firm):

1. "Leader" strategy. The “leading” firm in the product market occupies a dominant position, and this is also recognized by its competitors. The leading firm has a set of strategic alternatives at its disposal:

The expansion of primary demand, aimed at discovering new consumers of the product, expanding the scope of its use, increasing the one-time use of the product, which is usually advisable to apply at the initial stages of the product life cycle the defensive strategy that the innovator takes to protect its market share from the most dangerous competitors;

An offensive strategy, most often consisting in increasing profitability by maximizing the experience effect. However, as practice shows, there is a certain limit, above which a further increase in market share becomes unprofitable;

A demarketing strategy that involves reducing one's market share in order to avoid accusations of monopoly.

2. "Challenge" strategy. A firm that does not occupy a dominant position can attack the leader, i.e. challenge him. The purpose of this strategy is to take the place of the leader. In this case, the solution of two most important tasks becomes key: choosing a springboard for attacking the leader and assessing the possibilities of his reaction and defense.

3. The strategy of “following the leader”. A “follow-the-leader” is a competitor with a small market share that chooses adaptive behavior, aligning its decisions with the decisions made by competitors. Such a strategy is most typical for small businesses, so let's take a closer look at possible strategic alternatives that provide small businesses with the most acceptable level of profitability.

Creative market segmentation. A small firm should only focus on certain market segments in which it can better exercise its competence or have greater agility to avoid major competitors.

Use R&D effectively. Since small enterprises cannot compete with large firms in the field of fundamental research, they must focus R&D on improving technologies in order to reduce costs.

Stay small. Successful small businesses focus on profit rather than increasing sales or market share, and they tend to specialize rather than diversify.

Strong leader. The influence of the manager in such firms goes beyond formulating a strategy and communicating it to employees, covering also the management of the current activities of the company.

4. Specialist strategy, “Specialist” focuses mainly on only one or several market segments, i.e. he is more interested in the qualitative side of the market share.

It seems that this strategy is most closely associated with the focusing strategy of M. Porter. Moreover, despite the fact that the “specialist” firm dominates its market niche in a certain way, from the point of view of the market for this product (in the broad sense) as a whole, it must simultaneously implement the strategy of “following the leader”.

1.5 Classification of competitive advantages of the organization

The management of the competitive advantages of the enterprise is carried out according to the same management (management) functions as the management of other objects.

“The factors of competitive advantage of the organization are divided into external, the manifestation of which to a small extent depends on the organization, and internal, almost entirely determined by the management of the organization. »

Table 1.1 List of external factors of competitive advantage of the organization

External factor of competitive advantage of the organization	What needs to be done to achieve and use a competitive advantage in Russia
Country competitiveness level	Open an organization in a country with a high level of competitiveness or increase the competitiveness of your country
The level of industry competitiveness	Take measures to increase the competitiveness of the industry or leave it for another, more competitive industry
The level of competitiveness of the region	Take measures to increase the competitiveness of the region or leave it for another, more competitive region
State support for small and medium-sized businesses in the country and regions	Rework the legislative framework for small and medium-sized businesses, orienting it towards efficient and law-abiding business conduct
Legal regulation of the functioning of the economy of the country and regions	Rework the legislative framework for the functioning of the economy as a system of codes and rights (competitive, antimonopoly, administrative, labor, etc.)
Openness of society and markets	Development of international cooperation and integration, international free competition
The scientific level of economic management of the country, industry, region, etc., the applicability of the tools of the new economy	Application of the economic laws of the functioning of market relations considered in topics 2-5, the laws of organization in statics and dynamics, 20 scientific approaches to management and specific principles for managing various objects, management methods at all levels of the hierarchy. If the leader does not master scientific methods, the performer will hardly master them.
National system of standardization and certification	Activation of work in this area, strengthening control over compliance with international standards and agreements, legal support for harmonization with the international system
State support for human development	To increase dozens of times in the Russian budget spending on education, healthcare and the social sphere
State support for science and innovation	Improve the transfer system (development of innovations, their innovation and diffusion), increase budget spending on science tenfold
The quality of management information support at all levels of the hierarchy	Creation of unified national information centers for spheres or branches of the national economy that meet the latest science and technology
The level of integration within the country and within the global community	Russia's entry into international organizations and development according to international laws
Tax rates in the country and regions	Revise the tax system, if possible, dock and unify rates
Interest rates in the country and regions	Reconsider the system of interest rates at all levels of management and areas of investment
Availability of accessible and cheap natural resources	To increase the proportion of state-owned resources mined and subsoil to at least 50%. Improve government control over resource spending
The system of training and retraining of managerial personnel in the country	The receipt of international, state and sponsor investments in this area and their spending should be under state control and give a specific result.
Climatic conditions and geographical location of the country or region	Protect the natural environment, improve the quality of the living environment and develop competitive advantages in this area
The level of competition in all areas of activity in the country	Comprehensively form and implement market relations

Table 1.2 List of internal factors of the competitive advantage of the organization

Internal factor of competitive advantage of the organization	What needs to be done to achieve and use competitive advantage
production structure of the organization	Design organizations based on flexible production systems, from automated modules and systems
mission of the organization	The mission should contain an original idea, an exclusive field of activity, a competitive product, a popular trademark, a brand, etc.
organizational structure of the organization	The organizational structure should be built on the basis of the organization's goal tree with horizontal coordination of all work by the manager for a specific product (problem-target organizational structure)
Production specialization	Carry out the design of the organization based on the analysis of the principles of rationalization of structures and processes, using modeling methods
the level of unification and standardization of products and components of production	Perform the whole range of work on the unification and standardization of various objects in order to streamline them according to standard sizes, types, methods, etc.
accounting and regulation of production processes	Include in the structure of the organization automation tools for accounting for compliance with the principles of proportionality, continuity, parallelism, rhythm of the flow of individual processes
staff	Constantly select personnel, improve their qualifications and create conditions for promotion, motivate high-quality and efficient work in order to ensure the competitiveness of personnel
information and normative-methodical base of management	When designing and developing structures, information systems should include high-quality information and regulatory and methodological documents
the strength of competition at the output and input of the system	When choosing a field of activity and suppliers of raw materials, materials, components, equipment, personnel, analyze the strength of competition and choose competitive suppliers
Resource: suppliers access to high-quality cheap raw materials and other resources	Constantly analyze the competitive environment, the number of suppliers, the strength of competition between them, their competitiveness to select the best. Monitor market parameters in order not to miss possible access to high-quality and cheap raw materials
accounting and analysis of the use of all types of resources at all stages of the life cycle of large objects of the organization	Stimulate the conduct of such an analysis, since in the future, saving resources for consumers of their products will be a priority for the organization, a factor of competitive advantage
resource efficiency optimization	Support work on resource optimization, as the global goal of competition is to save resources and improve the quality of life
Technical: proprietary goods	Continue to work on increasing the number of inventions and patents
patented technology and equipment	To increase the proportion of progressive technological equipment, to reduce its average age
quality of workmanship	Apply modern methods of quality control and promotion to maintain a competitive advantage
Managerial: managers	Increase the proportion of competitive managers
analysis of the implementation of the laws of the organization	Based on the results of the analysis of the laws of the organization, measures should be developed and implemented to improve processes
organization of the supply of raw materials, materials, according to the principle of "just in time"	Maintaining this competitive advantage requires a high degree of discipline throughout the entire material cycle.
functioning of the management system (competitiveness) of the organization	Develop and implement a system
functioning of the quality management system in the organization	Further retention of this competitive advantage requires highly qualified personnel, the use of scientific management methods
conducting internal and external certification of products and systems	The quality management system must comply with international standards ISO 9000:2000. scientific approaches and principles of quality management
Market: access to the market for resources needed by the organization	To obtain this advantage, it is necessary to study the parameters of the markets at the input of the system (organization), and to maintain it, it is necessary to monitor the market infrastructure
market leading position	To retain this main advantage, it is necessary to constantly take measures to retain all the competitive advantages of the organization.
exclusivity of the organization's product	This advantage is achieved by the high patentability of products, which, in turn, ensures their competitiveness in comparison with substitute products.
distribution channel exclusivity	This advantage is achieved by a high level of logistics, maintained by competitive marketers and sales workers.
exclusivity of advertising of the organization's products	To maintain the advantage, highly qualified advertising workers and sufficient funds for it are required.
effective system of sales promotion and after-sales service	The advantage is achieved by highly qualified economists, psychologists and managers of the organization. of course, the necessary means
Forecasting pricing policy and market infrastructure	In order to maintain this competitive advantage, it is necessary to analyze the effect of the law of demand, supply, competition, etc. on their products, to have a high-quality information base and qualified specialists.
The effectiveness of the functioning of the organization: Profitability indicators (according to profitability ratios of products, production, capital, sales)	Economic indicators determine the quality of the functioning of the organization in all aspects and areas. Therefore, in order to maintain its competitive advantages, the organization must improve the scientific level of management.
The intensity of the use of capital (according to the turnover ratios of types of resources or capital)	Levels of profitability, intensity of capital use and financial stability of the functioning of the organization are determined individually
financial sustainability of the organization	The higher the strength of competition in the industry, the lower will be the profitability and cost of goods, but the higher the quality of goods.
Share of exports of science-intensive goods	Competition is also a factor in increasing the efficiency of the use of all resources.

Listed in Table. 1.1 and 1.2 external and internal factors of competitive advantage of the organization are the maximum possible for the abstract organization. For a particular enterprise, the number of competitive advantages can be any.

“The value of each benefit can be quantified and analyzed over time. However, it is hardly possible to integrate all the benefits into a single indicator. ”

In principle, the more an organization has competitive advantages over current and potential competitors, the higher its competitiveness, survivability, efficiency, and prospects. To do this, it is necessary to improve the scientific level of management, gain new competitive advantages and look more boldly into the future.

1.6 Key competitive success factors

Key success factors are commonly referred to as factors arising from market requirements that can give the company an advantage over its competitors.

For example, a key factor may be “niche”, i.e., unsatisfied needs of existing manufacturers that can be satisfied by the proposed product (or, more often, for which an entirely new product should be developed).

Thus, each firm finds a segment of the market that is not currently occupied and establishes itself in it, which ensures commercial success. Naturally, each time the "ecological niche" was significantly different.

Key success factors can also be changes in the distribution network, in the policy of choosing a commodity-producing system, etc.

“Key factors are always revealed by comparing your product and your company with competitors. After the comparison, the top administration decides on what indicators it should outperform its competitors, and on what indicators it should keep on par with it or even yield in some way. ”

It should be remembered that sometimes the key success factors are of such a nature that the company is not able to own them on its own. This casts serious doubt on the expediency of entering this market and should be the subject of close attention from the company's management.

“When managing key factors, first of all, it is necessary to find out which “external environment” or “internal environment” of marketing is responsible for the occurrence of obstacles in the use of key success factors. Next, decide whether the company is able to change the existing state of affairs; if yes, develop a program of change, and if not, find out the possibility of working in another market or sector. ”

The role of elements of the internal structure of the company, which are called "responsibility centers", is very significant in this matter. Very often, this is where the key success factors are hidden. Responsibility centers are those units that are assigned special tasks in achieving the planned financial performance.

Cost centers are production units that set standards for the consumption of materials and labor resources. The goal of the leaders of these centers is to minimize the deviations of actual costs from planned ones.

Sales centers are sales units that are prohibited from lowering prices in order to increase sales, but are ordered to strive for a maximum sales volume.

Discretionary centers are administrative divisions in which it is not possible to strictly establish “costs / results” norms: here it is required to ensure the highest possible quality of activities with the flexibility of the expenditure item of the marketing budget.

Profit centers - usually all divisions, one way or another tied to the lines of the "product orientation" structure, and the amount of profit is set based on those elements of marketing that the corresponding division is really capable of managing.

investment centers. In them, the performance indicator is "return on capital" (profit minus tax on capital employed). All these centers (firm divisions) are given such rights so that they can maximize the use of their resources. Thus, the key factors of competitiveness provide the company with competitive advantages, which explains the need for their use in the activities of the enterprise.

2. Management of competitive advantages in the organization

2.1 Characteristics of the activities of Arnest OJSC

The Arnest company is the Russian leader in the aerosol business in the field of high technologies, production volumes and product sales. The company spends a lot of time and money on the implementation of social programs. For more than 30 years, Arnest has been manufacturing cosmetics and household chemicals.

Form of ownership: private property. Organizational and legal form: open joint stock company.

“A joint-stock company is a company whose authorized capital is divided into a certain number of shares. Shareholders, i.e. the owners of the shares of this company are not liable for its obligations, but bear the risk of losses associated with the activities of the company, within the value of their shares, i.e. have limited liability. ”

“Joint-stock companies are divided into open and closed. In the first case, the participants in the company can alienate their shares without the consent of other shareholders, in the second case, the shares are distributed only among the participants. The number of shareholders of an open joint stock company is unlimited. ”

Among the well-known brands: “Charm”, “Symphony”, “Lyra”, “Deadly Force”, “Garden”, “Mebelux”, etc. Through the active development of these brands, the company has traditionally maintained a leading position in the market for hair styling products, air fresheners, universal insecticides and polishes.

The assortment of the company is constantly being improved and today it has more than 350 product names. The high quality of products has been repeatedly confirmed by the most prestigious awards.

The enterprise is equipped with the most up-to-date high-quality equipment of leading European companies. The production capacity is 150 million aerosol packages and 15 million polymer bottles per year.

"Arnest" was the first in Russia to enter the international level of production and product quality control, has a quality system certificate ISO 9001 and an environmental certificate of compliance with ISO 14001-98.

To date, the company's products are represented in all cities of Russia, the CIS countries, the Baltic States and Iran. Among the key partners of the enterprise are world-famous perfume and cosmetic companies in Europe: Schwarzkopf, L`oreal, Unilever, as well as the Russian concern Kalina.

The Arnest company is focused on the production of high quality products and strives to meet the needs of the consumer as much as possible. The use of the most modern innovative technologies allows Arnest to maintain the status of a leader in Russia.

The most important tasks of the company are:

Maintaining and improving leadership positions in the main segments of the aerosol market,

Unification of all employees of the Company on the basis of common business objectives, corporate values, principles, norms and rules,

Constant expansion of the presence in cosmetics, household chemicals and insecticides through geographic expansion and entry into new, potentially attractive markets and segments.

The Arnest company provides a full range of services for the manufacture of the product:

Acquisition or production at the enterprise of primary components (aerosol can or polymer bottle) and group packaging;

Acquisition of all types of raw materials from the best manufacturers from anywhere in the world, or work with tolling raw materials;

Additional cleaning at the enterprise itself and bringing hydrocarbon propellants to the required pressure;

Mixing the ingredients of the active substance and filling it into aerosol cans and polymer bottles on the lines of European manufacturers;

Prepress preparation and adaptation of designs to the requirements of Russian legislation;

Development of recipes according to the submitted consumer requests;

Certification of the finished product with the execution of the entire set of necessary documents;

Storage of the finished product in our own warehouses;

Development of optimal logistics schemes for the delivery of the finished product to the customer's warehouses.

The organization under study operates within the framework of an organizational development strategy and, in particular, a moderate growth strategy, the use of which implies agility; use of external resources; business diversification; expansion of basic research; concentration of efforts on the implementation of innovations.

Prospects for the further development of JSC "Arnest" are due to the growth in consumption of products by Russian and foreign buyers.

Despite the growth in the volume of manufactured products, the company has not yet reached the required level of implementation, which allows the team to consistently and purposefully solve the tasks of managing competitive advantages that it faces.

2.2 Organizational structure of OJSC"Arnest"

The functions of managing the activities of an enterprise are implemented by departments of the management apparatus and individual employees, who at the same time enter into economic, organizational, social, psychological relations with each other.

The organizational structure of the personnel management system is a set of interrelated divisions of the personnel management system and officials.

There is a high degree of centralization of management. Management principles that form the basis of the organizational structure:

Hierarchy of management levels, in which each lower level is controlled by a higher one and is subordinate to it;

Correspondence of the powers and responsibilities of management employees to their place in the hierarchy;

Division of the labor process into separate functions and specialization of workers according to the functions performed;

Formalization and standardization of activities, ensuring the uniformity of the performance of their duties by employees and the coordination of solving various problems.

The Management Board is headed by the President and consists of several members appointed by the Board of Directors. It manages certain areas of work, its members take part in resolving issues at meetings of the board. The Management Board submits to the General Meeting of Shareholders an annual report, a balance sheet and a profit distribution plan. Board functions: current planning; management of research work, production, sales; development of a specific course of action, programs and methods; making decisions on organizational forms of management; delegation of authority to officials at lower levels of management; implementation of personnel policy; control over the state of the financial position of the company; approval of company budgets; control over the profitability of operations; ensuring intercompany communications and settlements.

The most important criteria for the quality of the board's work are: ensuring stable profits, optimal sales volume, high quality and novelty of products, as well as services provided to the consumer.

The middle level of management is designed to ensure the efficiency of the functioning and development of the company by coordinating the activities of all departments.

Central services are functional services that carry out the most important management functions: marketing, planning, coordination, accounting and control, management of the provision of scientific, technical and production and marketing activities. The activity of the central services is based on the coordination of the work of the relevant departments in the production departments. The main activity of the central services is the implementation of functional links:

The lower level of management is focused on the operational solution of tasks for the organization of economic activity within the framework of structural divisions, the main task of which is to fulfill the established tasks for the production of products and making a profit.

Production departments include smaller divisions - departments, sectors. The departments are headed by managers who have complete independence in solving current problems.

2.3 Marketing strategy and goals of Arnest OJSC

Under the conditions of developing market relations, Arnest CJSC pays special attention to the operational and almost daily analysis of various aspects of the company's marketing activities.

The highest, the main goal of the enterprise in a market economy is to maximize profits. However, at certain stages of development and functioning of the organization, there are intermediate goals, for example: to ensure break-even work; win a large share in the market of goods and services; regulate the product offer in accordance with demand; expand the sales market; to ensure the maximum growth of indicators;

Each of these intermediate goals always acts as a means to achieve the main (main) goal. The main strategic goal of JSC "Arnest" is to maintain long-term competitiveness in the Russian market of the aerosol business. To achieve this goal, Arnest OJSC implements the following strategies:

1. Orientation to the Russian market and the CIS market, growth through development on the expansion of the domestic market.

2. Increasing the volume and share of sales of products for export.

3. Client-oriented development strategy - the implementation of corporate orders for the manufacture of products, the creation of discount systems, the development and implementation of discounts for regular customers of company stores.

Marketing strategy of OAO “Arnest”:

Increasing the number of sales while reducing production costs;

Concentration on a promising market segment;

Product differentiation;

Development of discount systems and customer cards for buyers;

Creation of a club of like-minded clients;

Creation of a client-oriented strategy.

2.4 Analysis of the market and competitive environment of OJSC “Arnest”

Continuous monitoring of the competitive environment is a necessary condition for an analytical assessment of the market situation and orientation of production to meet the needs of the market in the most efficient way.

To ensure quality management at the enterprise, promising strategies in the field of competitiveness should be developed, as well as the necessary organizational measures for all aspects of economic management.

The main competitors of the enterprise are: "Zavodbytovoykhimii" LLC, "Dzerzhinsky Plant of Household Chemistry" CJSC, "Spektr" CJSC, "Vershina" LLC, "Household Chemicals Factory" CJSC. The figure shows the occupied share of Arnest OJSC in the market of aerosol products manufacturers, as well as the share occupied by its main competitors.

Rice. Distribution of market shares

Increasing competition while simultaneously expanding the market for aerosol products creates additional requirements for updating the range and improving product quality. The advantages of competitors can lead to the loss of customers, both existing and potential; and also lead to loss of market share.

To prevent this from happening, the company must find and eliminate the reasons for lagging behind competitors, as well as try to "get around" the competitor with other advantages.

“Consumer organizations tend to have clear guidelines for buying goods in such markets. These are the popularity of goods, the reliability of the seller, the stability of quality, the certainty of delivery, the availability of prices. However, under certain conditions, certain specific factors may acquire greater significance. ”

In essence, any superiority over competitors is achieved through innovation, and therefore the ability to introduce new technical and technological elements in the activities of an enterprise that provide market advantages is a necessary component of the competitiveness of an enterprise. In a highly competitive environment, superiority in quality, price and sales areas is today a life-supporting factor for success in the market.

2.5 Quality policy of JSC "Arnest" as a competitive advantage

The priority goal of Arnest OJSC is to meet the requirements and expectations of consumers and other interested parties, to maintain the company's image on this basis and increase the competitiveness of products.

To achieve this goal JSC "Arnest" carries out:

Constant updating of the assortment, increase in the output of new types of products;

Introduction of new technologies based on modern equipment;

Compliance with the requirements of environmental legislation and other mandatory requirements in the field of ecology;

Reducing the negative impact of its activities on the environment;

Formation of ecological culture of personnel;

Training of all employees on quality and environmental issues;

Involvement of personnel in quality improvement activities;

Formation of mutually beneficial partnerships with all stakeholders;

Improvement of the integrated quality management system of JSC "Arnest", in relation to perfumery and cosmetic products and household chemicals, in accordance with the requirements of GOST R ISO 9001-2001 and GOST R 14001-98.

The management of OJSC "Arnest" undertakes to follow this Policy and provide the necessary resources and conditions for its implementation by all employees.

The Russian company "ARNEST" declared itself as a high-level enterprise, having received in 2000 a certificate of compliance with the requirements of the international quality standard ISO 9001-96.

In April 2003, the quality management system was re-certified according to the new version of the ISO 9000 series standards.

In December 2004, the environmental management system of JSC "Arnest" was certified for compliance with the requirements of ISO 14000 series.

Obtaining these certificates means that the company cares not only about the quality of its products, but also about the environmental situation in the region.

The reliability of products is ensured by the types of control existing at the enterprise, ranging from the input control of raw materials and materials to the control of finished products.

Compliance of products, semi-finished products, parts, raw materials with international standards is controlled through an extensive network of documentation. Mandatory requirements for products are provided:

The reliability of the packaging and the composition of the product guarantees the safety of life and health of customers.

The manufacture of products on an ozone-friendly propellant contributes to environmental protection.

2.6 Competitive advantages of Arnest Company

The main competitive advantages of Arnest are:

Presence of own strong brands in the main market niches;

Availability of ISO 9001-2001 (quality management system), ISO 14001-2000 (ecology);

Own production of aluminum cylinders. In Russia, apart from OAO "Arnest", such production exists only at one plant. It should be emphasized that almost half of all aerosol products can only be filled into aluminum cans. This applies to hair styling mousses (foams), deodorants and antiperspirants, a number of antistatic agents, some cleaning products, and all other products with an aggressive formulation. In addition to the uniqueness of aluminum cylinders, their production has a much higher mobility compared to the production of tin cylinders, which is based on the initial printing on tin with subsequent folding and soldering of rolled sheets;

Own production of European standard valves and spray devices, including heads of several configurations, caps and spray caps of several types. JSC "Arnest" has implemented a full cycle of production of valves and nozzles, which allows not only to fully meet the needs of filling, but also to sell them to customers separately. The quality of produced valves and caps satisfies the requirements of transnational customers;

Production of a tin can. On the territory of JSC "Arnest" there is a German enterprise for the production of tin cylinders with a capacity of up to 100 million pieces. in year. The quality of the products makes this manufacturer the only company in Russia whose products meet the demand of transnational customers for tin packaging for contract filling of aerosols;

Modern warehouse of UVP (hydrocarbon propellants) and equipment for purification of UVP. There is a production of 8 different pressures and mixtures for the entire range of products.

JSC "Arnest" has its own plant for the production of propellants, while none of the Russian manufacturers of aerosols and up to 90% of world manufacturers have these capabilities, but purchase ready-made mixtures. In addition, a serious competitive advantage is the UVP purification system, which allows you to purchase unpurified cheap isobutane fraction and have one of the main components of aerosols at least 40% cheaper than competitors;

Own warehouses for raw materials and finished products: the presence of a logistics warehouse for "L" Oreal, the presence of its own temporary storage warehouse (temporary storage warehouse) for customs clearance of imported goods.A warehouse terminal (11 thousand sq. m.) is at the stage of completion;

Own STC (scientific and technical center) - development of recipes, certification, state. registration. Own accredited chemical analysis laboratory;

Implemented MS Axapta ERP system;

A wide and developing distribution network, currently numbering more than 100 companies in Russia and abroad;

Strong management team focused on the final result.

Based on the above analysis of the competitive advantages of the Arnest company, it can be concluded that the company is successfully working in the production and sale of aerosol products, including due to the fact that it can withstand competition compared to similar objects in this market.

Conclusion

Summing up, it should be noted that in order to survive or win in tough competition, any organization must have certain advantages over its competitors.

Knowing the company's capabilities and sources of competitive influence will allow you to identify areas where the company can go into open confrontation with competitors, and where it can avoid it.

The more an organization has competitive advantages over current and potential competitors, the higher its competitiveness, survivability, efficiency, and prospects. To do this, it is necessary to improve the scientific level of management, to gain new competitive advantages.

The Arnest company is the Russian leader in the aerosol business in the field of high technologies, production volumes and product sales.

The company's strategy is to find the best ways to offer consumers the highest quality products. The organization constantly increases the range of products offered and strives to develop the marketing component of the business.

Also, the priority goal of Arnest OJSC is to meet the requirements and expectations of consumers and other interested parties, to maintain the company's image on this basis and increase the competitiveness of products.

The study of the competitive advantages of the Arnest company shows the successful work of the enterprise for the production and sale of aerosol products, including due to the fact that the enterprise has certain advantages over its competitors in this market.

Bibliography

1) Belyaev V.I. Marketing: fundamentals of theory and practice. – M.: KNORUS, 2005. – 672 p.

2) Burtseva T.A., Sizov V.Ts., Tsen' O.A. Marketing management. – M.: Economit, 2005. – 271 p.

3) Tooth A.T. Strategic management. – M.: Prospekt, 2007. – 432 p.

4) Lapusta M.G. Directory of the director of the enterprise. – M.: INFRA-M, 2004. – 912 p.

5) Markova V.D. Marketing management. - M. Omega-L, 2007. - 204 p.

6) Okeanova Z.K. Marketing. – M.: Prospekt, 2007. – 424 p.

7) Pankrukhin A.P. Marketing. – M.: Omega-L, 2007. – 656 p.

8) Parakhina V.N., Maksimenko S.V., Panaseenko S.V., Strategic management. - M.: KNORUS, 2007. - 496 p.

9) Petrov A.N. Strategic management. - St. Petersburg: Piter, 2007. - 496 p.

10) Porter M.E. Competition. – M.: Williams, 2005. – 608 p.

11) Razdorozhny A.A. Organization (enterprise) management. - M.: Exam, 2006. - 637 p.

12) Reznik G.A., Spirina S.G., Introduction to the specialty “Marketing”. - Rostov n / D .: Phoenix, 2006. - 224 p.

13) Sinyaeva M.A. Small business marketing. – M.: UNITI-DANA, 2006. – 287 p.

14) Titov V.I. Enterprise economy. – M.: Eksmo, 2008. – 416 p.

15) Fakhtudinov R.A. Strategic management. – M.: Delo, 2005. – 448 p.

16) Fakhtudinov R.A. Organization competitiveness management. – M.: Eksmo, 2006. – 544 p.

17) Tsakhaev R.A., Murtizalieva T.V. Aliev S.A., Fundamentals of Marketing. - M.: Exam, 2005. - 448 p.

Reznik G.A., Spirina S.G., Introduction to the specialty "Marketing". - Rostov n / D .: Phoenix, 2006. - 87 p.

Markova V.D. Marketing management. - M. Omega-L, 2007. - 136 p.

Reznik G.A., Spirina S.G., Introduction to the specialty "Marketing". - Rostov n / D .: Phoenix, 2006. - 100 p.

Reznik G.A., Spirina S.G., Introduction to the specialty "Marketing". - Rostov n / D .: Phoenix, 2006. - 101 p.

Lapusta M.G. Directory of the director of the enterprise. - M.: INFRA-M, 2004. - 16 p.

Titov V.I. Enterprise economy. – M.: Eksmo, 2008. – 36 p.

Okeanova Z.K. Marketing. – M.: Prospekt, 2007. – 160 p.

Honestly, competitive advantages This is a topic that I am of two minds about. On the one hand, rebuilding a company from competitors in the market is a very interesting task. Especially when the company, at first glance, is like everyone else, and does not stand out in anything special. In this matter, I have a position of principle. I am convinced that any business can be rebuilt, even if it is one in a thousand and trades at prices above the market average.

Types of competitive advantages

Conventionally, all the competitive advantages of any organization can be divided into two large groups.

1. Natural (price, terms, delivery terms, authority, customers, etc.)
2. Artificial (personal approach, guarantees, promotions, etc.)

Natural benefits carry more weight because they are factual information. Artificial advantages are more of a manipulation, which, if used correctly, can significantly strengthen the first group. We will return to both groups below.

And now the most interesting. Even if a company considers itself the same as everyone else, inferior to competitors in terms of prices and believes that it does not stand out in any way, it still has natural advantages, plus, you can make artificial ones. You just need to spend a little time to find them and formulate them correctly. And here it all starts with competitive analysis.

Competitive analysis that is not

Do you know what is the most amazing thing about Runet? 80-90% of businesses do not conduct a competitive analysis and do not highlight the company's advantages based on its results. Everything, but what is enough time and energy in most cases is to look at competitors and tear some elements from them. That's the whole setup. And it is here, by leaps and bounds, that clichés grow. Who do you think was the first to come up with the phrase “Young and dynamically developing company”? It doesn't matter. Many have taken and ... Quietly adopted. Under the noise Similarly, clichés appeared:

• Individual approach
• Highly qualified professionalism
• High quality
• First class service
• Competitive prices

And many others, which in fact are not competitive advantages. If only because not a single company in its right mind will say that amateurs work for it, and the quality is slightly worse than none.

I am generally surprised by the attitude of some businessmen. You will communicate with them - everything “somehow” works for them, orders “somehow” go, there is a profit - and that’s fine. Why invent, describe and count something? But as soon as things start to get tight, that's when everyone remembers marketing, detuning from competitors and the advantages of the company. It is noteworthy that no one counts the money that was not received due to such a frivolous approach. But it is also a profit. Could be...

In 80-90% of cases, the Runet business does not conduct a competitive analysis and does not show the company's advantages to its customers.

However, there is a positive side to all of this. When no one shows their advantages, it's easier to rebuild. This means that it is easier to attract new customers who are looking for and comparing.

Competitive advantages of products (goods)

There is another blunder that many businesses make when they formulate benefits. But here it is worth mentioning right away that this does not apply to monopolists. The essence of the error is that the customer is shown the benefits of the product or service, but not the company. In practice, it looks like this.

That is why it is very important to correctly place emphasis and bring to the fore the benefits and emotions that a person receives and experiences when working with an organization, and not from buying the product itself. Again, this does not apply to monopolists that produce a product that is inextricably linked to them.

Main competitive advantages: natural and artificial

It's time to return to the varieties of benefits. As I said, they can be divided into two large groups. Here they are.

Group #1: Natural (Actual) Benefits

Representatives of this group exist on their own, as a fact. Only a lot of people don't write about them. Some, thinking it's obvious, others because they hide behind corporate clichés. The group includes:

Price- one of the strongest competitive advantages (especially when there are no others). If your prices are lower than those of competitors, write by how much. Those. not “low prices”, but “prices 20% below market”. Or "Wholesale retail prices". Numbers play a key role, especially when you work in the corporate segment (B2B).

Timing (time). If you deliver goods from today-to-today - tell us about it. If you deliver to remote regions of the country in 2-3 days, tell us about it. Very often, the issue of delivery time is very acute, and if you have thoroughly worked out the logistics, then write specifically where and for how much you can deliver the goods. Again, avoid abstract clichés like “fast/prompt delivery”.

Experience. If your employees “ate the dog” on what you sell and know all the ins and outs of your business, write about it. Buyers like to work with professionals who can be consulted. In addition, when buying a product or service from an experienced seller, customers feel more secure, which brings them closer to buying from you.

Special conditions. If you have any special delivery conditions (deferred payment, post-payment, discounts, showroom availability, geographic location, wide warehouse program or assortment, etc.). Everything that competitors do not have will fit.

Authority. Certificates, diplomas, major clients or suppliers, participation in exhibitions and other certificates that increase the importance of your company. A big help is the status of a recognized expert. This is when company employees speak at conferences, have a promoted YouTube channel or give interviews in specialized media.

Narrow specialization. Imagine that you have a Mercedes car. And in front of you are two workshops: a specialized service that deals only with Mercedes and a multi-profile service that repairs everything from UAZs to tractors. Which service do you apply to? I bet the first one, even if it has higher prices. This is one of the varieties of a unique selling proposition (USP) - see below.

Other actual benefits. For example, you may have a wider assortment than your competitors. Or a special technology that others do not have (or that everyone has, but which competitors do not write about). Anything can be here. The main thing is that you have something that others do not have. As a fact. This is also your USP.

Group #2: Artificial Advantages

I especially love this group, because it helps out a lot in situations where the customer's company does not have advantages as such. This is especially true in the following cases:

1. A young company, just entering the market, has no customers, no cases, no reviews. As an option, specialists leave a larger company and organize their own.
2. The company occupies a niche somewhere in the middle: it does not have a wide assortment, like large retail chains, and there is no narrow specialization. Those. sells goods, like everyone else, at prices slightly above the market average.
3. The company has a detuning, but the same as that of competitors. Those. everyone in the niche is using the same actual benefits: discounts, experience, etc.

In all three cases, the introduction of artificial advantages helps. These include:

Added value. For example, you sell laptops. But you can't compete on price with a bigger seller. Then you go to the trick: install an operating system and a basic set of programs on a laptop, selling it a little more. In other words, you are creating added value. This also includes various promotions a la "Buy and win ...", "When buying an apartment - a T-shirt as a gift", etc.

Personal adjustment. It works great when everyone around is hiding behind corporate clichés. Its essence is that you show the face of the company (for example, directors) and engage. Works great in almost any niche: from selling children's toys to armored doors.

Responsibility. A very strong advantage that I actively use on the site of my laboratory. Perfectly combined with the previous paragraph. People love to work with people who are not afraid to take responsibility for the products and/or services they sell.

Reviews. As long as they are real. The more authoritative the person who gives you feedback, the stronger the impact on the audience (see the trigger “ ”). Testimonials on letterhead with a seal and signature work better.

Demonstration. The best presentation is a demonstration. Let's say you don't have any other benefits. Or is, but implicit. Make a visual presentation of what you are selling. If these are services, show how you provide them, shoot a video. At the same time, it is important to correctly place the accents. For example, if you check each product for performance, tell us about it. And this will be an advantage for your company.

Cases. This is a kind of visual demonstration of the tasks solved (completed projects). I always recommend describing them because they work great for sales. But there are situations when there are no cases. This is especially true for young companies. Then you can make so-called artificial cases. The bottom line is simple: do yourself a favor or a hypothetical client. As an option - to a real client on a net basis (depending on the type of service, if possible). So you will have a case that you can show and demonstrate your expertise.

Unique selling proposition. We have already talked about it a little higher. Its essence is that you enter some detail or disclose information that sets you apart from your competitors. Here, take me. I provide copywriting services. But copywriting services in a wide range are provided by many specialists. And my USP lies in the fact that I give a guarantee of the result, expressed in numbers. Those. I work with numbers as an objective measure of performance. And it's gripping. You can find out more about USP in.

How to find and correctly describe the advantages of the company

As I said before, I firmly believe that every company has its own advantages (and disadvantages, but it doesn't matter now :)). Even if she is a strong middle peasant and sells everything like everyone else. And even if it seems to you that your company does not stand out in any way, the easiest way to understand the situation is to ask directly the clients who already work with you. However, be prepared that the answers may surprise you.

The easiest way to find out the strengths of your company is to ask your customers why they chose you.

Some will say that they work with you because you are closer (geographically). Someone will say that you inspire confidence, but someone just liked you. Collect and analyze this information and it will increase your profit.

But that is not all. Take a piece of paper and write down the strengths and weaknesses of your company. Objectively. As in spirit. In other words, what you have and what you don't (or don't have yet). At the same time, try to avoid abstractions, replacing them with specifics. See examples.

Far from all the benefits can and should be written on the same site. However, at this stage, the task is to write out as many strengths and weaknesses of the enterprise as possible. This is an important starting point.

Take a pen, paper. Divide the sheet into two columns and write down the advantages in one and the disadvantages of the company in the second. You can have a cup of coffee. Do not look at the mountain ash, it is here so, for the entourage.

Yes, we have, but this

See examples:

Flaw	Turning into an advantage
Office on the outskirts	Yes, but the office and warehouse are in the same place. You can see the item right away. Free parking even for trucks.
The price is higher than competitors	Yes, but rich equipment: a computer + an installed operating system + a set of basic programs + a gift.
Long delivery on order	Yes, but there are not only standard components, but also rare custom-made spare parts.
Young and inexperienced company	Yes, but there is mobility, high efficiency, flexibility and the absence of bureaucratic delays (these points need to be disclosed in detail).
Small assortment	Yes, but there is a specialization in the brand. Deeper knowledge in it. Opportunity to advise better than competitors.

You got the idea. So you have several types of competitive advantages at once:

1. Natural (factual information that you have that sets you apart from your competitors)
2. Artificial (amplifiers that also set you apart from competitors - guarantees, personal approach, etc.)
3. “Changelings” are flaws that are turned into virtues. They complement the first two points.

little trick

I use this trick from time to time when there is no way to show the dignity to the fullest, as well as in a number of other cases when something more “weighty” is needed. Then I don’t just write the benefits of the company, but combine them with the benefits that the client receives from the product or service. It turns out a kind of "explosive mixture".

See what it looks like in practice.

• Was: Experience 10 years
• It became: Budget savings up to 80% due to 10 years of experience

Or another example.

• Was: Low prices
• It became: The price is 15% lower, plus a 10% reduction in transport costs due to our own fleet.

You can learn in detail about how to correctly generate benefits from.

Summary

Today we examined the types of the main competitive advantages of the company and, using examples, analyzed how to formulate them correctly. At the same time, it is important to understand that everything that we did today should by default be part of a competitive strategy (if one is being developed). In other words, everything will work better when it is tied into a single system.

I really hope that the information in this article will expand your opportunities and allow you to more effectively conduct competitive analysis. In turn, if you have any questions - ask them in the comments.

I'm sure you will succeed!