Competitive advantage of the company. Ready-made examples of competitive advantages

Honestly, competitive advantages- This is a topic to which I have an ambivalent attitude. 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. On this issue I have a principled position. I am convinced that any business can be rebuilt, even if it is one of a thousand and trades at prices above the market average.

Types of competitive advantages

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

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

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

Now comes the fun part. Even if a company considers itself to be the same as everyone else, is inferior to competitors in terms of prices and believes that it does not stand out in any way, it still has natural advantages, plus, it can be made artificial. You just need to spend a little time finding them and formulating them correctly. And this is where it all starts with competitive analysis.

Competitive analysis that doesn't exist

Do you know what is the most amazing thing about Runet? 80-90% of businesses do not conduct competitive analysis and do not highlight the company’s advantages based on its results. That’s all, but what you have enough time and energy in most cases to do is look at your competitors and rip off some elements from them. That's the whole setup. And it is here that clichés grow by leaps and bounds. Who do you think was the first to coin the phrase “Young and dynamically developing company”? It doesn't matter. Many took it and... Quietly adopted it. On the quiet. In the same way, 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 no company in its right mind would say that its employees are amateurs, and the quality is a little worse than none.

I am generally surprised by the attitude of some businessmen. If you talk to them, everything “somehow” works for them, orders “somehow” go through, there is a profit - and okay. Why invent, describe and count something? But as soon as things start to get tough, that’s when everyone remembers marketing, differentiation from competitors, and the company’s advantages. It is noteworthy that no one is counting the money that was lost due to such a frivolous approach. But this is also profit. Could be...

In 80-90% of cases, Runet businesses do not conduct competitive analysis and do not show the company’s advantages to their clients.

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

Competitive advantages of products (products)

There is another serious mistake that many businesses make when formulating benefits. But here it is worth mentioning right away that this does not apply to monopolists. The essence of the mistake is that the client is shown the advantages 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 the organization, and not from purchasing the product itself. I repeat, this does not apply to monopolists who produce a product that is inextricably linked with them.

Main competitive advantages: natural and artificial

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

Group No. 1: natural (actual) benefits

Representatives of this group exist on their own, as a fact. Only many people don’t write about them. Some think 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 your competitors, write how much. Those. not “low prices”, but “prices 20% below market prices”. Or “Wholesale prices at retail”. Numbers play a key role, especially when you work in the corporate segment (B2B).

Timing (time). If you are delivering goods from today to today, say so. If you deliver to remote regions of the country in 2-3 days, tell us about it. Very often the issue of delivery times is very acute, and if you have thoroughly worked out 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 are keen on what you sell and know all the ins and outs of your business, write about it. Buyers love working with professionals they can consult with. In addition, when purchasing a product or service from an experienced seller, customers feel more secure, which brings them closer to purchasing from you.

Special conditions. If you have any special conditions supplies (deferred payment, postpayment, discounts, showroom availability, geographical location, wide warehouse program or assortment, etc.). Anything that competitors don’t have will do.

Authority. Certificates, diplomas, diplomas, major clients or suppliers, participation in exhibitions and other evidence that increase the significance of your company. The status of a recognized expert is a great help. This is when company employees speak at conferences, have a well-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 Mercs, and a multidisciplinary one that repairs everything from UAZs to tractors. Which service will you contact? I bet the first one, even if it has higher prices. This is one of the types of unique selling proposition (USP) - see below.

Other actual benefits. For example, you may have a wider range of products 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 happen here. The main thing is that you have something that others don’t have. As a fact. This also constitutes your USP.

Group No. 2: artificial advantages

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

  1. A young company, just entering the market, has no clients, no cases, no reviews. As an option, specialists come from more large company and organize their own.
  2. The company occupies a niche somewhere in the middle: it does not have a wide range, like large retail chains, and does not have a narrow specialization. Those. sells goods, like everyone else, at prices slightly above the market average.
  3. The company has some adjustments, but it is the same as its competitors. Those. everyone in the niche uses the same actual advantages: discounts, experience, etc.

In all three cases, introducing artificial advantages helps. These include:

Added value. For example, you sell laptops. But you can't compete on price with a larger seller. Then you use a trick: install an operating system and a basic set of programs on your laptop, selling it a little more. In other words, you create 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, the director) and involve. It works great in almost any niche: from selling children's toys to armored doors.

Responsibility. A very strong advantage that I actively use on my laboratory’s website. Combines perfectly with the previous point. People love to work with people who are not afraid to take responsibility for the products and/or services they sell.

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

Demonstration. The best presentation is a demonstration. Let's say you have no other advantages. Or there are, but implicit. Make a clear presentation of what you are selling. If these are services, show how you provide them, make a video. At the same time, it is important to place the accents correctly. For example, if you check each product for functionality, tell us about it. And this will be an advantage for your company.

Cases. This is a kind of visual demonstration of solved problems (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 idea is simple: do yourself or a hypothetical client a favor. As an option - to a real client on a mutual basis (depending on the type of service, if possible). This way 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. Take me, for example. I provide copywriting services. But many specialists provide a wide range of copywriting services. And my USP is that I guarantee results expressed in numbers. Those. I work with numbers as an objective indicator of performance. And it's catchy. You can find out more about the USP in.

How to find and correctly describe the company's advantages

As I already said, I firmly believe that every company has its own advantages (and disadvantages, but that 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 are already working with you. Be prepared that the answers may surprise you.

The easiest way to find out strengths For your company, ask your clients why they chose you.

Someone will say that they work with you because you are closer (geographically). Some will say that you inspire confidence, while others simply liked you. Collect and analyze this information and it will increase your profits.

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

Not all advantages can and should be written about on the same site. However, at this stage the task is to write down as many strengths and weaknesses of the enterprise as possible. This is an important starting point.

Take a pen and paper. Divide the sheet into two columns and write down the advantages of the company in one and the disadvantages of the company in the second. Maybe with a cup of coffee. Don’t look at the rowan tree, it’s just there for the ambience.

Yes, we have, but this

Look at the examples:

Flaw Turning into an advantage
Office on the outskirts Yes, but the office and warehouse are in one place. You can see the product right away. Free parking even for trucks.
Price higher than competitors Yes, but it comes with a rich package: 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 spare parts made to order.
Young and inexperienced company Yes, but there is mobility, high efficiency, flexibility and the absence of bureaucratic delays (these points need to be discussed in detail).
Small assortment Yes, but there is a specialization on the brand. Deeper knowledge of it. The ability to advise better than competitors.

You get the idea. This gives you several types of competitive advantages:

  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. “Shifters” are disadvantages that are turned into advantages. They complement the first two points.

Little trick

I use this trick from time to time, when it is not possible to fully show off my strengths, and also in a number of other cases when I need something more “weighty”. Then I don’t just write the company’s advantages, but combine them with the benefits that the client receives from the product or service. It turns out to be a kind of “explosive mixture”.

See what this looks like in practice.

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

Or another example.

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

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

Summary

Today we looked at the types of main competitive advantages of a company and, using examples, we looked at 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 the competitive strategy (if it is being developed). In other words, everything will work better when linked into a single system.

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

I'm sure you will succeed!

However, when making any changes, it is necessary to adhere to one of the main principles of marketing: first of all, when creating or changing a product, it is necessary to take into account the desires and interests of the consumer.

This principle is the first step towards a successful and prosperous business. But attitude towards consumers is not enough; it is necessary to create a certain competitive advantage that will allow you to overtake competitors in the chosen niche.

Creating an advantage

The concept of “competitive advantage” means an exclusively positive difference between a product and the products of competitive organizations. It is this advantage that is the factor why the consumer chooses this product over the product of competing companies. A competitive advantage could be, for example, the quality of a product or service.

When creating a competitive advantage, it is important to adhere to two basic principles:

  • This benefit must be truly important to the consumer;
  • The consumer must see and feel the competitive advantage.

Despite such a great effectiveness in creating a competitive advantage, it must be remembered that competitors will still identify this advantage after some time and apply it to their products.

However, as practice shows, this time is quite enough to recoup expenses, make significant profits and overtake direct competitors.

Creating a competitive advantage should not require huge company budgets, so it is necessary to use a certain methodology that allows not only to create a competitive advantage, but also to significantly reduce the costs of this process.

In this methodology, four main stages can be distinguished, each of which is an integral part of the entire process of creating product advantages:

  • Segmentation;
  • Specialization;
  • Differentiation;
  • Concentration.

Segmentation

In this case, the concept of segment hides end consumers who are looking for one or another type of product with certain parameters. In other words, each consumer has certain needs and interests, based on which he chooses the necessary products. Thus, all consumers can be divided into groups of requests.

When carried out (by individuals), characteristics of gender, age characteristics, place of residence, availability of a vehicle, etc. are often selected as parameters for the segmentation process.

In addition, sometimes more detailed data about consumers is used, that is, targeting is carried out. On the other hand, consumers can be organizations to which products are supplied. In this case, segmentation is carried out according to the organization’s affiliation a certain type: store, dealer, manufacturer, etc.

One of the main parameters of segmentation in this case is the size of the company, knowing which, you can easily determine the total amount of products passing through the organization.

After determining the signs of segmentation and identifying a future competitive advantage, it is necessary to use the usual marketing tools to promote the product: advertising products, direct introduction of the product in the company, sending letters with a request to purchase the product and other methods.

Of course, all of the methods listed have a big problem: There is no guarantee that the company will decide to purchase the product. In this regard, there is a more practical way - to segment consumers based on the problems present in this area.

Surely, every business has a bottleneck that occurs because consumers cannot find what they need. For example, clients of a butcher shop want a certain type of meat to cost not 300 rubles, but 250.

Or so that pizza is delivered to your home not in one hour, but in 30 minutes. Thus, segmentation is carried out according to unsatisfied consumer needs.

It is quite easy to evaluate such requests, for example, by conducting a regular survey of potential consumers. Surveys have always produced the most effective results. After analyzing the survey results, the most pressing problem is selected and a competitive advantage is built on its basis. Thus, the promoted products will be associated by the target audience with this particular competitive advantage.

Specialization

Identifying problems in a certain market segment is only half the battle. It is necessary to decide on one problem that needs to be eliminated and turned into an advantage. However, this is not as easy to do as it seems. The choice of a specific problem for its further solution depends on a number of factors, which include money, the presence of certain conditions, personnel, and time.

In particular, time, money and personnel are the determining criteria in the selection of a particular problem. After all, with a large budget, an unlimited amount of time and specialized personnel, any problem can be solved. Therefore, before making a choice, it is necessary to correctly assess the available resources.

An equally important step is to assess the importance of the problem. The relevance and severity of a particular problem determine the success of competitive advantage. However, you should not choose a problem that other organizations can easily fix. And, of course, we should not forget about eternal problems that exist in every market segment.

We are talking about price, staff and assortment. Every consumer always wants the purchased products to be of the highest quality and cheapest in a huge assortment, and the service staff does everything to ensure that he is satisfied and arrives in a good mood.

These problems cannot be completely and forever eradicated, since nothing ideal exists. But you can reduce the severity of the problem by increasing quality, reducing the cost of products, expanding the range and recruiting qualified personnel.

Evaluating all the factors and criteria presented above, you need to choose the most suitable problem that you can handle. It is important to remember that the more acute the problem, the more effective it will be in creating a competitive advantage, and the longer this advantage will last. In this matter, the difficulty of the entire process of creating a competitive advantage is only a plus, and not vice versa.

Differentiation

Having decided on the problem that needs to be solved, that is, after identifying a competitive advantage, it is necessary to start advertising. The differentiation stage as a whole consists of implementing various types of advertising.

At the same time, you need to advertise not just a company, service or product, but advertise with an emphasis on the chosen competitive advantage. Thus, the consumer will know that this particular product has a certain advantage that he has been looking for for so long from other companies.

However, it is not prohibited to use different images and graphic techniques, slogans and quotes, the main thing is that the emphasis is on the competitive advantage of the product.

But so that it is not short, since all consumers have different inertia in perceiving advertising, that is, a certain period for which the target audience gets used to advertising material. This period is different for all groups.

Thus, for individuals, the inertia of advertising perception is usually up to 6 months, and for organizations - up to several tens of months. Of course, this indicator depends on the specifics of the product being promoted and the business as a whole.

Concentration

The concentration stage is no less important when creating a competitive advantage, since it is negligence, relaxation and absent-mindedness that can cause failure. To most effectively create a competitive advantage, it is recommended that this objective be made a priority by communicating to everyone in the company. It is this pace and daily work on this problem that guarantees the continued success of the product.

Don’t forget about repeated segmentation, which is recommended to be done annually. It will not only help to identify new problems in a specific market segment, but will also determine the current state of affairs relative to the previously selected competitive advantage, which will allow an even more accurate assessment of the company’s strategy in the market and draw the right conclusions.

Combining all the stages and correctly performing each of them, it is important to remember that creating a competitive advantage is a rather complex and labor-intensive process that requires significant financial and time costs. This is why the segmentation and specialization stages are so important for selecting a problem and assessing the possibilities for solving it.

If there is financial opportunity, it is often useful to repeat segmentation, but in your own region, in the region of the manufacturer. With a professional and competent approach, the company takes a significant step forward due to its competitive advantage.


Strategic management is designed to ensure the company's survival in the long term. Of course, when it comes to survival in a competitive market environment, there is no question that a company can eke out a miserable existence. It is very important to understand that as soon as someone connected with a company becomes unhappy with this connection, he leaves the company, and after a while it dies. Therefore, survival in the long term automatically means that the company copes with its tasks quite successfully, bringing satisfaction with its activities to those who enter the sphere of its business interaction. First of all, this concerns customers, employees of the company and its owners.

Concept of competitive advantage

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

Consequently, a company can successfully exist and develop only if its product has competitive advantages. Strategic management is designed to create competitive advantages.

Consideration of the issue of creating and maintaining competitive advantages involves analyzing the relationships and, accordingly, the interaction of three subjects of the market environment. The first subject is “our” company producing a certain product. The second subject Ekt is a buyer who may or may not buy this product. The third buyer is competitors who are ready to sell their products to the buyer, which can satisfy the same need as and a product produced by “our” company. The main thing in this market “love” triangle is the buyer. Therefore, the competitive advantages of a product are the value contained in the product for the buyer, which encourages him to buy this product. Competitive advantages do not necessarily arise from comparing the product of “our” company with the products of competitors. It may be that there are no firms on the market offering a competitive product, but nevertheless the product of “our” company is not sold. This means that it does not have sufficient customer value or competitive advantage.

Types of competitive advantages

What creates competitive advantages? It is believed that there are two possibilities for this. First, the product itself may have a competitive advantage. One type of competitive advantage of a product is its price characteristics. Very often, a buyer purchases a product only because it is cheaper than other products that have similar consumer properties. Sometimes a product is purchased only because it is very cheap. Such purchases can occur even if the product has no consumer 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 due to such characteristics that have nothing to do with its utilitarian consumer properties, for example, due to the brand.

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

Strategy for creating competitive advantages

There are three strategies for creating competitive advantage. The first strategy is price leadership. With this strategy, the company's focus when developing and manufacturing a product is costs. The main sources of creating price advantages are:

Rational business management based on accumulated experience;

Economies of scale due to lower costs per unit of production as production volumes increase;

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

Optimization of intra-company communications, helping to reduce company-wide costs;

Integration of distribution networks and supply systems;

Optimization of the company's activities over time;

Geographical location of the company's activities, allowing to achieve cost reduction through the use of local characteristics.

Implementing pricing strategy creating competitive advantages for a product, the company must not forget that its product at the same time must correspond to a certain level of goodness and differentiation. Only in this case can price leadership 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 company. However, it should be kept in mind that cost leadership and differentiation strategies should not be mixed, and certainly should not be attempted at the same time.

Differentiationis the second strategy for creating competitive advantage. With this strategy, the company 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 its competitors. To achieve this, the company has to go beyond the functional properties of the product.

Firms do not necessarily use differentiation to obtain price premiums. 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 interests of the buyer. It was previously said that a 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 for a competitive advantage to emerge, the product's unusualness, novelty, or uniqueness must be of value to the buyer. Therefore, the differentiation strategy assumes the study of consumer interests as a starting point. To do this you need:

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

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

Determine the factors that form the buyer’s understanding of the product (sources of information about the properties of the product, image, etc.).

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

The third strategy a firm can use to create a competitive advantage in its product is focusing 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 company's product is very specialized), or a specific system of access to the product is created (a system for selling and delivering the product). By pursuing a strategy of concentrated creation of competitive advantages, a company can use both price attraction and differentiation at the same time.

As you can see, all three strategies for creating competitive advantages have significant distinctive features, allowing 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 connection between these strategies, and this should also be taken into account by firms when creating competitive advantages.


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Course work

Competitive advantages of the enterprise


Introduction

1. Theoretical foundations of competitive advantages of an enterprise

1.1 Concept and essence of competitive advantages

2.2 Organizational structure of JSC Arnest

Conclusion

Because typical mistake When analyzing this problem, the concepts of competitiveness and competitive advantage become confused, so let’s clarify these concepts.

“The competitiveness of a product is integral Comparative characteristics a product, a comprehensive assessment of its parameters (consumer, economic, organizational and commercial) relative 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 conditions 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 in comparison with similar objects presented on a given market. Competitiveness determines the ability to withstand competition in comparison with similar objects in a given market. ”

The company's competitiveness is the ability to compete in the market with other manufacturers and suppliers of similar products, both in terms of the degree to which their products or services satisfy the specific needs of customers, and in terms of business efficiency. It is most often assessed by company specialists, and competitive advantages are assessed 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 commitment; accordingly, they largely determine the company’s competitive 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 the system possesses that gives it an advantage over its competitors. ”

“The key factors for success in competition are usually called those factors arising from market requirements that can give a company an advantage over its competitors. ”

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

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

Sources of competitive advantage are varied, 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 different types of activities from competitors or performing similar activities, but in other ways. Strategic positioning is based on an advantage that is unattainable by competitors (key competitive advantage). This could be the uniqueness of a product or service, brand image, technological leadership, a unique combination of activities, etc.

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

“For a certain factor to become a company’s competitive advantage, it must have key value for consumers and at the same time based on the uniqueness of the company’s business. ”

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

1.2 Michael Porter's Theory of Competitive Advantage

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

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

“Thus, the first component of strategic choice according to this model is 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. By selling a product at the same (or approximately the same) price as its competitors, the company in this case makes a greater profit. ”

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

It is difficult, but not impossible, 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 any one of them. A firm that focuses on low costs must still provide acceptable quality and service. Similarly, a firm that produces differentiated products must not be so expensive as its competitors that it is a detriment to the firm.

“A company’s competitive advantage is determined by how clearly it can organize relationships with suppliers and consumers. By better managing these relationships, a firm can gain a competitive advantage. Regular and timely deliveries can reduce a firm's operating costs and reduce inventory levels required. These relationships arise when the method of one activity affects the cost or efficiency of others. »

Connections often lead to the fact that additional costs for “adjusting” individual activities to each other pay off in the future. Firms must incur such costs in accordance with their strategy for the sake of competitive advantage

M. Porter notes that firms gain a competitive advantage:

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

If in the company's home country there is more accessible and accurate information about the needs for goods and technologies;

If ongoing investment is possible;

If the interests of owners, managers and staff coincide.

“Thus, one of the main objectives of many organizations is to achieve an advantage over its direct competitors. The central question is: how will the organization gain this advantage? M. Porter gives an answer to this important question, highlighting key overall strategies. ”

Three such strategies are cost leadership, customization and focus. Each of them will be discussed sequentially in the next paragraph 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 can also include strategies for behavior in a competitive environment. Each of these strategies is based on the need to achieve a specific competitive advantage.

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

Note that competitive advantages in modern firms do not always relate to production technology; very often they move to the stage of marketing, service, R&D, management and financial innovation. Competitive advantages, as a rule, are realized at the level of strategically) business units. Let's consider the features of the main strategies for achieving competitive advantages.

Analyzing the competitive environment and determining the competitive position of the organization involves determining the complexity and dynamism of the competitive environment. Universal methods of such analysis are M. Porter's five forces model and competitor cost analysis.

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

Analysis of competitors' costs comes down to identifying the strategic factors that control costs, cost analysis itself, and modeling competitors' costs.

“To gain a competitive advantage, a company can use three general competitive strategies: cost leadership (the goal is to achieve cost leadership in a specific area through a set of measures to control them); in a given area), focusing (task - focusing on a specific group, market segment or geographic region). ”

Cost leadership. When implementing this strategy, the goal is to achieve cost leadership in its industry through a set of functional measures aimed at solving this particular problem. As a strategy, it involves tight control of costs and overheads, minimizing expenditure in areas such as research and development, advertising, etc. It also requires a whole layer of buyers who perceive the advantage of low costs, expressed in prices.

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

Personalization. This strategy involves differentiating an organization's product or service from those offered by competitors in the industry. As Porter shows, the individualization approach can take various shapes, including image, brand, technology, distinctive features, special services to customers, etc.

Customization requires significant research and development as well as marketing. In addition, buyers should give their liking to a product as something unique. A potential risk of the strategy is changes in the market or the release of analogues that competitors may initiate, which will destroy any competitive advantage that the company has already achieved.

“A focus strategy involves selecting 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. The focus strategy can be used either by a cost leader that serves a given segment or by a differentiator that meets the special requirements of a market segment in a way that allows it to charge a high price. ”

So firms can compete on a broad front (serving multiple segments) or focus on a narrow area (targeted action). Both focus strategies are based on the differences between the target segments and the rest of the industry. It is these differences that can be called the reason for the formation of a segment that is poorly served by competitors who operate on a large scale and do not have the ability to adapt to the specific needs of this segment. A cost-focused firm can outperform broad-based firms because of its ability to eliminate excesses that are not valued by that segment.

When choosing this strategy, the main objective is to concentrate on a specific group of consumers, market segment or geographically isolated market. The idea is to serve a specific target well rather than the industry as a whole.

The expectation is that the organization will thus be able to serve a narrow target group better than its competitors. This position provides protection from all competitive forces. Focus may also imply 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 “leader” company in the product market occupies a dominant position, and its competitors also recognize this. The leading firm has a whole range of strategic alternatives at its disposal:

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’s life cycle a defensive strategy adopted by the innovating company in order to protect its market share from the most dangerous competitors;

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

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

2. “Challenger” strategy. A firm that does not occupy a dominant position may attack the leader, i.e. challenge him. The goal of this strategy is to take the place of leader. In this case, the key becomes the solution of two important tasks: choosing a springboard for carrying out an attack on the leader and assessing the possibilities of his reaction and defense.

3. “following the leader” strategy. A “follower” is a competitor with a small market share that chooses adaptive behavior by aligning its decisions with those of competitors. This 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 focus only on certain market segments in which it can better exercise its competence or has greater agility in order to avoid clashes with leading competitors.

Use R&D effectively. Since small businesses cannot compete with large firms in basic research, they must focus R&D on improving technology to reduce costs.

Stay small. Successful small businesses focus on profit rather than increasing sales or market share, and they strive for specialization rather than diversification.

A strong leader. The influence of the leader in such firms extends beyond the formulation of strategy and communication of it to employees, also covering the management of the day-to-day activities of the company.

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

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

1.5 Classification of an organization’s competitive advantages

The management of an enterprise's competitive advantages is carried out using the same management functions as the management of other objects.

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

Table 1.1 List external factors competitive advantage of the organization

External factor of an organization's competitive advantage What needs to be done to achieve and use competitive advantage in Russian conditions
Country competitiveness level Open an organization in a country with a high level of competitiveness or increase the competitiveness of your country
Industry competitiveness level Take measures to improve the competitiveness of the industry or leave it for another, more competitive industry
Level of competitiveness of the region Take measures to increase the competitiveness of the region or leave it for another, more competitive region
Government support for small and medium-sized businesses in the country and regions Rework the legislative framework for small and medium-sized businesses, focusing it on efficient and law-abiding business conduct
Legal regulation of the functioning of the economy of the country and regions Rework the legislative basis for the functioning of the economy as a system of codes and rights (competition, antimonopoly, administrative, labor, etc.)
Openness of society and markets Development of international cooperation and integration, international free competition
Scientific level of economic management of a country, industry, region, etc., applicability of tools of the new economy Application of the economic laws of the functioning of market relations discussed in topics 2-5, laws of organization in statics and dynamics, 20 scientific approaches to management and specific principles of managing various objects, management methods at all levels of the hierarchy. If the leader does not master scientific methods, the performer is unlikely to master them
National system of standardization and certification Intensification 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 Increase spending on education, healthcare and social services in the Russian budget tenfold
State support for science and innovation Improve the transfer system (development of innovations, their innovation and diffusion), increase budget expenditures on science tenfold
Quality of information support for management at all levels of the hierarchy Creation of unified national information centers in areas or sectors of the national economy that meet the latest science and technology
Level of integration within the country and within the international community Russia's entry into international organizations and development according to international laws
Tax rates in the country and regions Reconsider tax system, if possible, align and unify rates
Interest rates in the country and regions Review the system interest rates at all levels of management and investment areas
Availability of accessible and cheap natural resources Increase the share of mined and subsoil resources in state ownership to no less than 50%. To debug state control over the expenditure of resources
System of training and retraining of management personnel in the country The receipt of international, state and sponsorship investments in this area and their expenditure must be under government control and produce specific results.
Climatic conditions and geographical location of the country or region Protect the natural environment, improve the quality of the habitat and develop competitive advantages in this area
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 an organization’s competitive advantage

Internal factor of the organization's competitive advantage What needs to be done to achieve and use competitive advantage
production structure of the organization Design organizations based on flexible production systems, automated modules and systems
mission of the organization The mission must contain original idea, exclusive field of activity, competitive product, popular trademark, brand, etc.
organizational structure of the organization The organizational structure should be built on the basis of a tree of organizational goals with horizontal coordination of all work by a manager for a specific product (problem-target organizational structure)
Production specialization Carry out organization design based on an analysis of the principles of rationalization of structures and processes, using modeling methods
level of unification and standardization of manufactured products and components of production Carry out the full range of unification and standardization work various objects in order to organize them by standard sizes, types, methods, etc.
accounting and regulation of production processes Include in the structure of the organization means for automating the accounting of compliance with the principles of proportionality, continuity, parallelism, and rhythmicity of individual processes.
staff Constantly select personnel, improve their qualifications and create conditions for promotion, motivate high-quality and effective work in order to ensure the competitiveness of personnel
information and normative-methodological management base When designing and developing structures, information systems should include high-quality information and regulatory and methodological documents
the force 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 select 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 so as 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 organizational objects Encourage such analysis, since in the future consumers of their goods will save resources priority direction activities of the organization, a factor of competitive advantage
optimization of resource efficiency Support efforts to optimize resources, since the global goal of competition is to save resources and improve the quality of life
Technical: Proprietary Product Continue to work to increase the number of inventions and patents
patented technology and equipment Increase the share of advanced technological equipment and reduce its average age
quality of goods manufacturing Apply modern methods quality control and stimulation to maintain a competitive advantage
Managerial: managers Increase the share of competitive managers
analysis of the implementation of organizational laws Based on the results of the analysis of the laws of the organization, measures should be developed and implemented to improve processes
organizing the supply of raw materials, materials, according to the “just in time” principle Maintaining this competitive advantage requires high discipline throughout the entire material flow 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, application scientific methods management
carrying out 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 markets at the input of the system (organization), and to maintain it, monitor the market infrastructure
leading position in the product market To maintain this main advantage, it is necessary to constantly take measures to maintain 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 compared to substitute products
exclusivity of distribution channels This advantage is achieved by a high level of logistics and is maintained by competitive marketers and sales employees
exclusivity of advertising of the organization's products To maintain an 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 and. of course, with the necessary means
Forecasting pricing policies and market infrastructure To maintain this competitive advantage, it is necessary to analyze the operation of the laws of demand, supply, competition, etc. for your products, to have a high-quality information base and qualified specialists.

Efficiency of the organization:

Profitability indicators (based on profitability ratios of products, production, capital, sales)

Economic indicators determine the quality of the organization's functioning in all aspects and areas. Therefore, to maintain its competitive advantages, the organization must increase the scientific level of management.
Intensity of capital use (by turnover ratios of types of resources or capital) Levels of profitability, intensity of capital use and financial sustainability of the organization are determined individually
financial stability of the organization's functioning The higher the strength of competition in the industry, the lower the profitability and cost of goods will be, but the higher the quality of goods.
Share of exports of knowledge-intensive goods Competition is also a factor in increasing the efficiency of using all resources.

Listed in table. 1.1 and 1.2 external and internal factors of an organization's competitive advantage are the maximum possible for an 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 competitive advantages an organization has over current and potential competitors, the higher its competitiveness, survivability, efficiency, and prospects. To do this, it is necessary to increase the scientific level of management, gain new competitive advantages and look more boldly into the future.

1.6 Key factors for competitive success

Key success factors are usually called those factors arising from market requirements that can give a company an advantage over its competitors.

For example, a key factor may be an “ecological niche,” i.e., needs not satisfied by existing manufacturers that can be satisfied by the proposed product (or, more often, for which a completely new product should be developed).

Thus, each company finds a market segment 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 may also be changes in the distribution network, in the policy for choosing a commodity production system, etc.

“The key factors are always revealed by comparing your product and your company with competitors. After comparison, the top administration decides on which indicators it should outperform its competitors, and on which indicators it should stay on the same level with it or even concede in some way. ”

It should be remembered that sometimes the key success factors turn out to be of such a nature that the company is not able to own them on its own. This casts serious doubt on the advisability of entering this field 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 - the “external environment” or the “internal environment” of marketing is responsible for the emergence of obstacles in the use of key success factors. Next, decide whether the company is able to change the current state of affairs; if yes, develop a change program, and if not, explore the possibility of working in another market or in another 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 planned financial indicators.

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

Sales centers are sales divisions that are prohibited from reducing prices in order to increase sales volumes, but are required to strive for maximum sales volumes.

Discretionary centers are administrative units in which it is not possible to strictly establish cost/result standards: here it is necessary to ensure the maximum good quality activities with flexibility in the marketing budget expense item.

Profit centers are usually all divisions that are in one way or another tied to the lines of the “product orientation” structure, and the volume of profit is set based on those elements of marketing that the corresponding division is actually capable of managing.

Investment centers. In them, the indicator of efficiency is the “return on capital” (profit minus tax on capital used). All these centers (divisions of the company) are endowed with such rights so that they can make the most of their resources. Thus, the key factors of competitiveness provide the company with advantages in the competitive struggle, which explains the need for their use in the activities of the enterprise.

2. Managing 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 technology, production volumes and product sales. The company spends a lot of time and money on implementing social programs. For more than 30 years, Arnest has been producing cosmetic products and household chemicals.

Form of ownership: private property. Organizationally – legal form: public corporation.

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

“Joint stock companies are divided into open and closed. In the first case, the company's participants can alienate the shares they own without the consent of other shareholders; in the second, the shares are distributed only among the participants. Number of open shareholders joint stock company unlimited. ”

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

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

The enterprise is equipped with the most modern high-quality equipment from leading European companies. Productive capacity amounts to 150 million aerosol packages and 15 million polymer bottles per year.

Arnest was the first in Russia to reach the international level of production and product quality control; it has an ISO 9001 quality system certificate and an environmental certificate of compliance with ISO 14001-98 requirements.

Today, the company's products are represented in all cities of Russia, CIS countries, the Baltic states and Iran. Among the key partners of the enterprise are world-famous European perfumery and cosmetics companies: “Schwarzkopf”, “L`oreal”, “Unilever”, as well as the Russian concern “Kalina”.

The Arnest company is focused on the production of products High Quality and strives for maximum satisfaction of consumer needs. The use of the most modern innovative technologies allows Arnest to maintain its leader status in Russia.

The most important objectives of the company are:

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

Uniting all Company employees based on common business objectives, corporate values, principles, norms and rules,

Constantly expanding our presence in cosmetics, household chemicals and insecticides through geographic expansion and entering new, potentially attractive markets and segments.

The Arnest company provides a full range of product manufacturing services:

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

Purchasing all types of raw materials from the best manufacturers from anywhere in the world, or working with customer-supplied 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;

Pre-press preparation and adaptation of designs to the requirements of Russian legislation;

Development of recipes according to submitted consumer requests;

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

Storage of the finished product in our own warehouses;

Development of optimal logistics schemes for delivering the finished product to customer 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 presupposes 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 Arnest OJSC are determined by the growth in consumption of products by Russian and foreign buyers.

Despite the growth in production volumes, the company has not yet reached the required level of implementation, allowing the team to stably and purposefully solve the challenges facing it in managing competitive advantages.

2.2 Organizational structure of the JSC"Arnest"

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

The organizational structure of the personnel management system is a set of interrelated units 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 employees’ performance of their duties and the coordination of solving various tasks.

The 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 board meetings. The board provides the general meeting of shareholders with an annual report, balance sheet and profit distribution project. Functions of the board: current planning; management of research and development, production, sales; development of a specific direction of action, programs and methods; making decisions on organizational forms of management; delegation of powers to officials at lower levels of management; implementation of personnel policy; control over the financial position of the company; approval of company budgets; control over the profitability of operations; ensuring intra-company 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 consumers.

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 scientific, technical and production and sales activities. The basis of the activities of central services is the coordination of the work of the relevant departments in production departments. The main activity of central services is the implementation of functional connections:

The lower level of management is focused on quickly solving organizational problems economic activity within structural divisions, whose main task is to fulfill established tasks for producing products and making a profit.

Production departments include smaller units - 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

In the context of the development of market relations, JSC Arnest pays special attention to operational and almost everyday analysis of various aspects of the enterprise’s marketing activities.

The highest, main goal of an enterprise in a market economy is to maximize profits. However, at certain stages of the development and functioning of an organization, there are also intermediate goals, for example: to ensure break-even operation; win a large share in the market of goods and services; regulate product supply in accordance with demand; expand the sales market; ensure 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 Arnest OJSC is to maintain long-term competitiveness in the Russian aerosol business market. To achieve this goal, Arnest OJSC implements the following strategies:

1. Focus on the Russian and CIS markets, growth through development through the expansion of the domestic market.

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

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

Marketing strategy of Arnest OJSC:

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;

Creating a client-oriented strategy.

2.4 Analysis of the market and competitive environment of Arnest OJSC

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

To ensure high-quality management at the enterprise, promising strategies in the field of competitiveness must be developed, and the necessary organizational measures must be provided for all aspects of economic management.

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

Rice. Market share distribution

Increasing competition while simultaneously expanding the aerosol products market 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 enterprise must find and eliminate the reasons for lagging behind competitors, as well as try to “outdo” the competitor with other advantages.

“Consumer organizations tend to have clear guidelines regarding the purchase of goods in such markets. These are the popularity of the goods, the reliability of the seller, the stability of quality, the certainty of delivery, and the affordability of prices. At the same time, under certain conditions, certain specific factors may become more important. ”

Essentially, 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 distribution is a vital factor for market success today.

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, 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, increasing the production of new types of products;

Introduction of new technologies based on modern equipment;

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

Reducing the negative impact of your activities on the environment;

Formation of environmental culture of personnel;

Training of all employees on quality and environmental issues;

Involving staff in quality improvement activities;

Formation of mutually beneficial partnerships with all stakeholders;

Improving 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 Arnest OJSC 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 recertified 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 standards.

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.

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

The compliance of products, semi-finished products, parts, and 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 composition of the product guarantees the safety of life and health of customers.

Manufacturing products using ozone-friendly propellant helps protect the environment.

2.6 Competitive advantages of the Arnest Company

The main competitive advantages of the Arnest company are:

Availability of our 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, besides Arnest OJSC, such production exists only at one plant. It must 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 aggressive formulations. In addition to the uniqueness of aluminum cylinders, their production has much higher mobility compared to the production of tin cylinders, which is based on initial printing on tin, followed by folding and soldering of rolled sheets;

In-house production of European standard valves and spray devices, including heads of several configurations, caps and spray caps of several types. Implemented at JSC "Arnest" full cycle production of valves and nozzles, which allows us not only to fully meet the filling needs, but also to sell them to customers separately. The quality of manufactured valves and caps satisfies the needs of transnational customers;

Production of tin cylinders. On the territory of Arnest OJSC 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 enterprise in Russia whose products meet the demand of transnational customers for tin packaging for contract filling of aerosols;

Modern storage of hydrocarbon propellants and equipment for cleaning of hydrocarbon propellants. There is 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 the world's 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 unrefined cheap isobutane fraction and have one of the main components of aerosols at least 40% cheaper than competitors;

Own warehouses of 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 being completed;

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

Implemented ERP system MS Axapta;

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

A strong management team focused on the end result.

Based on the above analysis of the competitive advantages of the Arnest company, we can conclude that the company is successfully operating in the production and sale of aerosol products, including due to the fact that it can withstand competition in comparison with similar objects in this market.

Conclusion

To summarize, it should be noted that in order to survive or win in fierce competition, any organization must have certain advantages over its competitors.

Knowledge of the company’s capabilities and sources of competitive influence will allow us to identify areas where the company can enter into open confrontation with competitors, and where it can avoid it.

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

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

The company's strategy is to find optimal ways to offer consumers products of the highest quality. The organization is constantly increasing 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, maintaining the company's image on this basis and increasing the competitiveness of products.

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

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

Are your services useful? Tell us about it!

Post reviews from real customers with links to their social media profiles/company websites so that potential clients can get confirmation. 90% of people will not check the authenticity of these reviews, but such openness on your part will earn their trust.

High level of quality/service

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

At all The qualifications of specialists do not indicate the level of service, unless your employees took courses on “How to lick a client.”

Take the example of hotels for which international service standards have been developed. A person entering a three-star hotel already has a rough idea of ​​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 can a client expect in your company?

Write to him how quickly the repair will be carried out or the goods will be delivered. Explain how the personal manager will work to solve his problem - step by step, from receiving the application to the result. Convince him that even after completing the order you are always ready to help.

Imagine calling a company about a large contract, and the sales representative replies, “We’re having lunch, call us 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 can your employees do?

And if you want to boast about the professionalism of your employees, tell us about them separately: where they received 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 do, they grin skeptically, mentally saying “well, well, of course.”

Don't believe me? Look through the websites of your competitors - in 99 cases out of 100 you will find this phrase, if not on the “About the Company” page, then on some other page.

Replace general phrases with specific information.

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

Surely put fulfilling the customer’s wishes first. But you understand that others are doing the same thing. Agree, it’s hard to imagine a designer who makes a red kitchen for clients who dream of a green one.


Show HOW you fulfill customer desires

Write, what is included in your system of relationships with customers

  • How do you satisfy the needs of each client depending on the specifics of the tasks assigned to them. What exactly do you take into account when developing a project or completing an order?
  • What additional terms of cooperation can you include in a standard contract at the client’s discretion: different payment schemes, individual discounts, delivery, assembly.
  • How broad are the powers of the client who wishes to participate in the process or observe it with the possibility of adjustment. At what point are wishes 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.


Are you trying to attract customers with low prices? Do not do it this way!

Instead of empty words use honest numbers.

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

Or: in January we are reducing the cost of the “Chicardos” collection by 30% - when ordering a kitchen 3 meters long, you save 25,000 rubles.

Most often about low prices say those companies that have nothing else to hook the client with. Don't deny the buyer minimum math skills. Believe me, he will do a great job of 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.

Compose comparison table , based on the results of which your proposal wins as the safest, fastest to achieve, durable (warm, prestigious, comfortable - select 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 of choosing from a specific product range. You can offer dozens or even hundreds of gold rings, but the buyer is interested in a specific size. And if it is not on the display of the online store, for the client the slogan about the richness of the assortment will remain zilch. An initially loyal visitor will go to competitors next time, so as not to be disappointed again.
  • Opportunity to purchase related products- a lid for the frying pan, a brush for collecting animal hair - for the vacuum cleaner, wipes for cleaning the screen - for the 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 company's wide range of services, list them. Indicate which of them you provide separately and which ones only as a package. 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 its scope.

Often a list of useless benefits is posted in the “About Us” section. Already fixed it? Great! Now check whether you have used all the ways to persuade customers on the “About” page. Look into the arguments that hit the mark.

And admit in the comments, do you often have professional professionals with an individual approach working in your companies? 😉

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