Analysis of the competitive environment of the enterprise

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The most important factor in the external environment of the organization, taken into account when conducting marketing analysis, is competition.

Competition is an element of the market mechanism, which is realized in the form of interaction between market actors and the struggle between them for the most profitable investment of capital.

Competition is the main property of the market, causing the desire of each market entity to create and satisfy a particular need of society best quality goods and services, receiving a higher profit than other market participants.

Thus, market competition is a competition between the subjects of the supply of goods for the best sales opportunities.

Most of the actually functioning markets are competitive. Wherein:

W pure competition takes place in the case of homogeneous goods with a large number of buyers and sellers, none of which influences the formation of the market price;

Monopolistic competition is observed in a market with a large number of buyers and sellers and different prices for one type of product;

III oligopolistic competition takes place in a market with a small number of sellers, each of whom is highly sensitive to the pricing policy of the other's marketing strategy;

A pure monopoly exists when there is only one seller in the market who sets his prices.

Knowing the competitive advantages and taking them into account in various operations allows firms to obtain more favorable conditions when making commercial transactions. The company's competitive advantage is achieved by providing its customers with great benefits when purchasing goods. In order for a company to use competitive advantages, it must conduct a systematic analysis of the activities of existing and potential competitors in order to identify the main competing firms, assess their goals, strategies, strengths and weaknesses in their activities, etc.

Firm "Okna Service" operates in the conditions of intra-industry competition. That is, entrepreneurs of one branch of the economy are competing. This competition tends to equalize product prices. In the conditions of oligopolistic competition in which the firm operates, everyone seeks to take a higher position in the market. Each firm, and there are many of them, resorts to different methods... Some reduce prices, others offer more favorable conditions for the purchase of goods or add additional functions to the product, make it more perfect. Each firm is very sensitive to the policy of pricing, sales, product promotion in the marketing strategy of the other. There is a vague oligopoly, since there are about 20-25 companies in this branch of our city, which, on average, divide the market equally.

In order to assess the competitiveness of the company, we will carry out a comparative analysis with the firms "Plastic windows" and "EUROcomfort".

For this we use the method of scoring the level of competition (table 3.2). Although the scoring is carried out voluntarily by experts, however, every time it should be based on the opinions of clients, which in general ensures the comparative objectivity of the estimates. For simplicity, it is advisable to use a rating scale from 1 to 10 for each marketing tool, ranking the ratings in the range from 1 to 2 points according to five degrees of significance:

a) 1-2 - very bad;

b) 3-4 - bad;

c) 5-6 - satisfactory;

d) 7-8 is good;

f) 9-10 is very good.

The set of marketing tools used in competition is very diverse and depends on the marketing objectives.

Table 3.2. - Scoring of the level of competition

Marketing tools	Point scores	The level of competitiveness of the company "New Windows" in relation to:
"New Windows"	"Plastic windows"	"EURO comfort"	"Plastic windows"	"EUROcomfort"
1. Assortment
2. Quality of services
3. Price level
4. Service level
5. System of discounts
6. Credit system
7. Company image
8. Organization of delivery and sales policy

From the data in Table 3.2, we can conclude that, in general, Okna Service is 3% ahead of its main competitors in terms of competitiveness. Based on the data obtained, it is necessary to draw conclusions, identify weaknesses and develop ways to improve low scores. So, for example, the firm is inferior in the range of products to the firm "EUROcomfort". Consequently, it is necessary to expand the existing assortment or even form new assortment groups. In terms of favorable prices, the company is inferior to the company "Plastic windows". Therefore, it is necessary to take a closer look at the existing pricing system, maybe introduce something new, take a closer look at the competitors' pricing system. You can also see that the system of discounts in the company "Plastic windows" is somewhat better. This is a significant factor that can win over to your side. potential buyer... Customers give their preference to the company "EUROcomfort" due to the highly valued image. In terms of the effectiveness of advertising and sales promotion, the company is inferior to both competitors. As you can see, the company has big drawbacks to work on, explore new opportunities, research competitors, identify their competitive advantages in order to attract new buyers in the future, generate more income and outstrip their competitors in terms of development and income generation.

It is necessary to analyze, identify and propose new competitive advantages. This can be done using the Boston Matrix, a model proposed by the Boston Advisory Group. The matrix is built on the basis of two main parameters: the relative market share of the organization in comparison with the share of the main competitor and the growth rate of market capacity. Both parameters have only two possible positions: high and low. The result is a matrix of four quadrants (Figure 3.1):

Figure 3.1. - Boston Matrix

Let's take a look at each element:

v "Stars". These are leading products (high market share in a developing industry). The presence of such products indicates the high competitive advantages of the organization;

v "Cash cows". These products have a large share in a stable or slow-growing market. The presence of such goods indicates that the organization has certain advantages, since these products generate large revenues that can be used by the organization both to maintain their market share and to support other products.

v "Difficult children". These are products that have a low share compared to the products of their main competitor in a fast-growing market. The competitive advantages of the organization in such a situation are not obvious. In the presence of financial resources and with significant marketing efforts, the organization can increase its market presence and move these products to the "Stars" category. Otherwise, the organization may lose its position in the market.

v "Losers". These products generate negligible income and sometimes losses. An organization cannot rely on a competitive advantage and should, whenever possible, dispose of such products if there is no compelling reason to retain them.

Products belonging to the "Stars" category include products from the RENAU-Sib-Desig and RENAU-Brilliant-Desig groups. There is a high demand for data windows of item groups. The windows of these groups can be attributed to the competitive advantages of the company, since no other company has products of these groups. They feature advanced manufacturing technology and can be ordered with tinted or mirror-reflective glass.

The rest of the groups of goods can be attributed to the "Cash cows" group, as they generate income, but there are no significant changes in the demand for products.

The "Losers" group includes the windows of the GEALAN and Proplex groups. There is a gradual decrease in demand for these groups of windows. It is necessary to change something so that these goods do not go out of circulation in the consumer market and in the future bring more income. You can make adjustments to the production itself, color, texture, can introduce any additional functions.

The competitive advantages of the "Okna Service" company include the quality of the services provided. Product consumers note great quality services rendered, products. This is an important factor, because if you make a good reputation through product quality, the consumer agrees to overpay a certain amount, and this will attract new consumers and, as a result, additional income. Also, the consumer notes the high quality of the services provided, which can be attributed to a competitive advantage. This will build a positive reputation in the consumer market. The consumer allocates a credit system, this system is focused on a wide range of consumers, this, undoubtedly, attracts. Desire to acquire plastic window has the overwhelming majority, and the firm expands its market share by attracting a consumer with an average income in the family. This allows the firm to generate additional income.

Any modern company, regardless of its size, operates in a competitive environment.

In economics, competition is usually understood as rivalry between individual companies in a certain field of activity (competitors), interested in maximizing profits by winning consumer preferences. A competitor is an adversary, and you should always know your opponent by sight. Therefore, when choosing a strategy for the activity and development of any enterprise, an analysis of the company's competitors is necessary.

Analysis of the threat of the appearance of substitute products;

Analysis of the threat of new players entering the market;

Analysis of the bargaining power of suppliers;

Analysis of the market power of consumers;

Analysis of the level of competition.

Each of the directions allows you to determine the degree of "attractiveness" or profitability of a business on this stage.

For instance:

The emergence of substitute products can significantly affect the decrease in the company's revenue;

Numerous new entrants inevitably diminish the company's bottom line by drawing attention from consumers;

Suppliers of raw materials and other materials, setting high prices, can lead to unprofitable production, etc.

However, according to Porter, this model is only useful for analyzing the industry as a whole. Therefore, the development of a competitive enterprise strategy requires an analysis of the external microenvironment - that is, the direct competitors of the organization.

The analysis of the organization's competitors can be roughly divided into the following stages:

1. Identifying competitors and studying their resources;

2. Determination of their goals and objectives;

3. Study of strategies for achieving goals and tactical actions;

4. Identification of strengths and weaknesses;

5. Determination of the prospects for the development of competitors in the short term (one year) and long term.

6. Analysis of the information received in order to use it in their own interests.

A significant place in the analysis of the organization's competitors is occupied by the study of the principles of corporate culture and persons holding key positions. An important area of analysis is customer feedback on the actions of competitors and an expert assessment of their activities.

In reality, it is not always possible to collect all the data necessary for a detailed analysis of competitors' activities. Therefore, the scheme of the already known M. Porter is usually used, which contains four main directions: self-image, current strategies, opportunities and goals for the future, and the process of analyzing the activities of competitors is expressed in the systematic accumulation of this information.

The information obtained is divided into quantitative (formal) and qualitative. Quantitative information includes: the organizational and legal form of the enterprise, the types of activities of the enterprise, the number of personnel, the company's assets, sales volumes, market share, profitability and other quantitative indicators. Quantitative information is objective and reflects the actual data of the enterprise.

The main quality indicators are the reputation of the company, its popularity, personnel qualifications and management experience, pricing strategy and flexibility in your marketing strategy.

Comprehensive analysis of qualitative and quantitative indicators makes it possible to assess the activities of competitors as a whole.

Thus, in the course of analyzing the competitive environment of the enterprise, the following are determined:

1. Main economic features analyzed industry.

2. Main driving forces industries and assessing their impact in the future.

3. The level of competition in the industry.

4. Companies with the highest and lowest competitiveness.

5. Possibility of further actions of competitors and forecast of their direction.

6. Factors determining the success or failure of competition.

7. The degree of attractiveness of the industry in terms of an acceptable level of profitability.

Knowing about the activities of competitors allows you to assess the prospects for market success, to set priorities and to react more quickly to the actions of competitors. Analysis of the competitive environment of the enterprise allows to provide employees of the enterprise with information, to improve the system of training and advanced training of personnel and, to a certain extent, to motivate their activities.

A significant result of the analysis for the enterprise as a whole is the possibility of developing a strategy for neutralizing the strengths of competitors and increasing the competitiveness and efficiency of its own enterprise.

The final stage is a comparative analysis of competitors. Its main goal is to identify the strongest and weakest competitors and choose a strategy in relation to certain competitors in order to neutralize them.

For comparative analysis the most commonly used method of assessment is based on several parameters using a point system. In practice, it looks like this: certain indicators are ranked according to a five-point school, where "5" is excellent, "4" is good, and so on.

The main factors that are usually highlighted in a comparative analysis:

Enterprise image;

Core product / service concept;

Product quality;

The level of diversification of types of business;

The total market share of the main types of business;

Production base capacity, incl. the number of employees, the availability of fixed assets, their level and efficiency of use, the structure of costs, etc.

Financial indicators;

Market price of products / services, taking into account possible discounts or markups;

The effectiveness of sales and activities to promote goods / services and in terms of the channels used for the distribution of goods;

Company policy in the external business environment, etc.

It is advisable to present the collected information in the form of a table, where it is recommended to include ranked information on your own company in order to determine its place in the competitive environment.

Competitor analysis is a rather complicated process, and it is not always possible to carry out it on your own, as it requires not only knowledge and time, but special personnel, which is not always possible for small companies.

Method SWOT analysis is based on identifying the strengths and weaknesses of the firm, as well as opportunities and threats, and establishing relationships between them.

SWOT is an abbreviation of four words: Strengts, Weaknesses, Opportunities, and Threats. The task of SWOT - analysis is considered to be the selection of key factors that should be taken into account when developing a strategy. Therefore, the analysis is carried out in six key areas: product, processes, customers, distribution, finance and administration. Based on the factors identified during the analysis, strategic decisions are made further.

Therefore, SWOT analysis answers the following questions:

Does the company use its internal strengths or distinctive advantages in strategy? If it lacks distinctive strengths, what potential strengths could it become?

Are the weaknesses of his enterprise vulnerabilities? Or do they not provide an opportunity to use certain opportunities?

What opportunities can give an enterprise a real chance of success when exploiting them?

What threats should the business be most concerned about?

The classical presentation of information is the compilation of a table, where they sign and evaluate the strengths in the firm's activities (S), its weaknesses (W), potential opportunities (O) and external threats (T). At the intersection, the table is marked with an expert assessment in points. The total score for rows and columns shows the priority given to one factor or another when forming a strategy.

Based on the results of the SWOT analysis, a matrix of strategic measures is compiled, where:

SO - activities necessary to use strengths to increase the company's capabilities;

WO - activities necessary to overcome weaknesses and use the presented opportunities;

ST - activities that use the strengths of the organization to minimize threats;

WT - measures that reduce the influence of weaknesses to minimize threats.

When conducting a SWOT analysis, you need to adhere to several rules in order to avoid possible mistakes and get the most benefit:

1. As much as possible, specify the scope of the SWOT analysis as much as possible. Analyzing too much information will result in the results being too generalized and useless for practical use.

2. Observe the correctness when attributing a factor to a separate group... Strengths and weaknesses are the internal traits of the company. Opportunities and threats describe the market situation and are not directly influenced.

3. SWOT - analysis should show the real position and prospects of the company in the market.

4. Conducting the SWOT - analysis is entrusted to the team, as otherwise the information will be distorted by subjective perception.

5. Specifically formulate the conclusions of the analysis, because in this way they will more clearly explain the influence of factors on the company's business now and in the future, and the more practical value the results of the SWOT analysis will have.

SWOT analysis has significant limitations: it is only a tool for structuring the available information; he does not give clear and clearly formulated recommendations, specific answers.

SWOT analysis helps to visualize the main factors, as well as evaluate certain events. The simplicity of a SWOT analysis is deceiving; its results are highly dependent on the completeness and quality of the original information. To conduct a SWOT analysis, either experts with a very deep understanding of the current state and trends of market development are required, or a very large amount of work on the collection and analysis of primary information to achieve this understanding.

Errors made during the formation of the table (the inclusion of unnecessary factors or the loss of important ones, incorrect assessment of the weight coefficients and mutual influence) cannot be identified in the process of further analysis (except for very obvious ones) - they will lead to incorrect conclusions and erroneous strategic decisions. In addition, the interpretation of the resulting model, and, consequently, the quality of conclusions and recommendations is highly dependent on the qualifications of the experts conducting the SWOT analysis.

INTRODUCTION

Most of today's markets are characterized as competitive. This implies an urgent need to study competition, its level and intensity, in the knowledge of the forces and market factors that have the greatest impact on competition and its prospects.

When entering the market, a firm usually faces competition from other firms that produce and sell similar products. Each of them, as a rule, strives to take a leading position, sell as many goods as possible, and capture the largest possible market share. It is on this idea that marketing strategy both a supply and a trading company. The intensity of competition and the forms of rivalry depend on the type of market, the degree of its saturation, the number and power of competing firms, technological, financial, and trade-organizational capabilities of both the firm itself and its competitors.

In this term paper such concepts as competition, competition, competitive environment will be considered, various approaches to the study of competitors are studied, and conclusions are drawn.

Competition (from lat. with oncurrere - collide) is a mechanism of competition, the struggle of market structures for the right to find their buyer and for the opportunity to sell their goods on the most favorable terms and, therefore, to get the maximum profit.

Orderly, legally defined, fair competition is built into the marketing mechanism. Competition is an integral part of marketing.

The presence of a competitor in the market creates an element of competition: sellers fight for the right to better satisfy the needs of the buyer, to make him their own. regular customer... Competition revives the market, has a beneficial effect on prices, brings to life new forms of service, and forces manufacturers to pursue an active innovation policy. V in a certain sense, competition is the engine of progress. Paradoxically, it’s true: an entrepreneur’s worst enemy — a competitor — turns out to be his best friend. The Russian proverb is truly right: that's why the pike is in the sea, so that the crucian does not doze.

Monopoly leads to stagnation, stagnation, contributes to the development of dictatorial tendencies in the economy, the subordination of consumers to the selfish interests of business. The existence of independent competitors forces the entrepreneur to treat the needs of consumers with great respect for the fear that they will become clients of competitors. Competition is a property inherent in a developed market economy. It acts as a kind of irritant that encourages market participants to improve and update their products, improve their quality, reduce prices, and improve the system of trade and sales services. Naturally, we are talking about fair competition, respecting the consumer's right to choose and observing the principles and rules established by society.

The firm carries out its functions, being, as a rule, in competitive environment, which is characterized by the presence of a certain number of independent buyers and sellers who have the right and the ability to freely enter and leave the market. Naturally, they compete with each other in the right to sell their goods to the consumer. Buyers can also dispute among themselves over the right to buy a certain product from a certain firm. The more market participants, the more intense the rivalry between them.

Competitive environment - a market or a segment of it where sellers compete freely for the right to sell a product to a buyer.

The consumer is the only arbiter between honestly competing entrepreneurs. He votes with his wallet, choosing the product that suits him the most.

Competition is developing on the market between firms producing or selling similar products (with similar properties) to the same categories of buyers. Each firm strives to create a product with best properties than the competitor. In a sense, competition is a dispute between the old and the new, a kind of war of technologies.

Competitive fight - a set of actions by a firm aimed at achieving a competitive advantage, at gaining a strong position in the market and ousting a competitor from it.

The form of competition depends on the prevailing conditions, time and place, but its essence is always the same: the desire to sell more goods than a competitor, taking away some of his potential customers, and, ultimately, to get that profit (or part of it) that the competitor was counting on. In other words, to capture a larger market share than a competitor or, if possible, push it out of the market. The goal of the competition is to achieve a competitive advantage, that is, to take a stronger competitive position in the market. According to some calculations, every 10% increase in the company's market share can increase the profitability of the product by 10% as well.

American specialist B. Henderson formulated a number of laws of competition:

if competitors are equally powerful, and their strategies are essentially identical, then the equilibrium in the market is unstable, and conflicts are constant (even for insignificant reasons);
if a significant, most significant factor approached a critical state, then the equilibrium is also unstable;
if several factors can become critical in potential, then a situation is possible when each competitor will find a certain share of success among consumers, and then several competitors will be able to coexist each in their own "professional segment";
with one critical factor, there are no more than two or three competitors;
the two-to-one ratio between any two competitors is the equilibrium point where the urge to change the ratio dies down.

The methods of competitive struggle are extremely diverse and rarely repeated, but from the many techniques used in this struggle, three main methodological directions crystallize:

1) Obtaining and using comprehensive information about the competitor;

2) Maneuvering prices in order to gain a competitive advantage in the most important segment of demand generation (in developed countries with a market economy, price competition / price war is already in the past);

3) Gaining a competitive advantage due to the best quality product or due to better organization its promotion (non-price competition).

When entering the market, each firm is forced to link its activities with the actual or projected activities of the competitor / competitors. The business portfolio of the company is oriented towards the market capacity divided by all participants. Product development is built in such a way as to surpass the competitor's products in the main parameters. At its core, a firm's strategy is a competitive strategy, all of its tasks are subordinated to the idea of achieving a competitive advantage.

In the process of transitioning to the market, enterprises faced many problems of survival. Full access to the external environment brought not so much new opportunities as new problems of the effective functioning of the enterprise in the market. Enterprises came to the introduction of marketing and to this day come only as a result of the disastrous situation with sales. own products... This is typical for most domestic enterprises. And often, the newly created marketing department turns into a second sales department. Also, often the management does not fully understand the essence of marketing and "ties" the salaries of the marketing department specialists to the sales volumes. As a result, marketers lack the time and significant motivation to continuously and comprehensively analyze the market. The actions of the management are clear - it is necessary to sell products and make a profit now and to the maximum, and not spend time, money and efforts of specialists in order for them to conduct research, which often does not bring a quick and one hundred percent return. Thus, by creating a marketing department, the company hopes to get additional consumers and ensure the sale of its products.

Meanwhile, focusing exclusively on sales, the company cannot fully control the situation. It is "cooked in own juice”Without realizing the danger of becoming an outsider in the industry.

Often the management has a delusion - "we know our competitors, we don't need to constantly monitor the situation in the industry ...". This misconception leads to the fact that the company freezes at a certain stage of development. Due to the fact that the competitive position is not clearly defined, management begins to understand that something is wrong only after a clear decrease in sales. In this situation, as a rule, attempts are made to establish sales by searching for more and more new sales markets for their products, while its life cycle for example, due to the development of technology, competitors are already at the stage of residual demand. Or, for example, finding new raw materials allowed competitors to significantly reduce prices for their products. This clearly shows the need for constant monitoring of the industry and a comprehensive study of their competitive position in it.

The factor of the external environment, generally defined by the word "competition", has a strong influence on the enterprise. Hence follows the inevitable need to study the level and intensity of competition, phenomena and circumstances that have the greatest impact on competition and its prospects.

Competition analysis needs to be carried out in two aspects. The first aspect is the analysis of the activities of specific firms, which can be considered as the closest competitors of the enterprise. But in addition to the direct influence of certain enterprises, it is necessary to bear in mind the influence of a factor called the "competitive environment". All competing enterprises together form such an environment. Therefore an important part of analysis of competition is an analysis of the competitive environment, which includes:

Analysis of the main factors determining the intensity of competition in specific market;

Assessment general competitive environment and intensity of competition;

Forecasting tendencies of changes in the competitive environment and its individual factors.

Since the competitive environment is formed not only as a result of the struggle of competing firms within one industry, then in order to analyze competition in the market it is necessary to take into account a wider range of factors. These factors are characterized by a different sphere of action, intensity and duration of action. There are 6 main groups of factors that are associated with various subjects of the microenvironment. The activities of all these six market entities create conditions for competition:

Directly enterprises - manufacturers (sellers) currently operating on the market of the product in question;

Potential competitors - enterprises that can enter the market under consideration and, accordingly, aggravate the competition;

Manufacturers of substitute goods, “taking” part of the demand from the analyzed market;

Suppliers of raw materials, materials, semi-finished products and components, the terms of cooperation with which may aggravate the competition;

Buyers who can influence businesses in the market in question;

A state that pursues a certain policy to regulate competition.

Each of the listed factors of competition can have a different impact on the situation in the industry, both in intensity and in direction (strengthening-weakening). The total effect of these factors determines the nature of the competitive environment in a particular market (pure competition, monopolistic competition, oligopoly, monopoly), the profitability of the entire market, the status of a particular enterprise in the market. There is a methodology that can be used to assess the significance of various factors of competition in terms of the strength of their influence on the product market and make general conclusion about the level of competition in this market.

The main factors that determine competition, and the systems of their manifestation are presented in table. 13.1.

Table 13.1 Main factors of competition

According to the above diagram of the factors that determine competition in the market for a given product or the analyzed industry, it is necessary to diagnose them. To do this, you need to find out what specific factors act in the case under consideration, and how their influence on competition is manifested. Let us consider these factors in more detail using the example of Block 1 "Situation in the industry".

Quantity and size of firms competing in the market, and mainly determine the degree of competition. Competition is most intense when there is a significant number of competitors in the market, approximately equal strength... Moreover, the competing firms do not have to be very large. This factor must be considered in each situation in its own way, depending on the size of the analyzed enterprise. So, a large company with significant resources and various advantages, as a rule, only enterprises of comparable size, with similar capabilities, compete. For average and, moreover, for small firm the presence of even one major competitor can be a significant obstacle to successful work in this market. In general, the number of firms that indicates a high degree of competition is ambiguous. It is different in different areas activities and markets for various goods.

Change in effective demand in the market enhances or weakens the effect of this factor. An increase in the size of demand softens the competition in the market. This is typical for the “Growth” stage of life cycle cycle. Although there may already be a lot of competitors, the demand is growing and the market “is enough for everyone”. Accordingly, the decline in demand exacerbates the situation on the market.

Service uniformity for a product in this market shows the company's ability to expand the range of works and services provided to customers and, thus, to stand out due to this marketing element among competitors. The presence on the market of a large number of competing firms with high degree diversification of related services makes it impossible for an enterprise to move into a niche, that is, to avoid direct competition through specialization in any services. That is, the significant homogeneity of the services provided in this product market acts to increase competition.

Uniformity degree and standard of goods, offered by different firms in the analyzed market, acts in the direction of intensifying competition. When manufacturers offer their versions of products that differ in quality in reality or in the opinion of buyers, then the competition decreases. Each firm has a corresponding market segment. Conversely, when all manufacturers produce very similar products for all customers, competition intensifies. Of course, differentiation of the offered products does not exclude competition, but only weakens it, since buyers can switch from one type of product to. another.

Buyer switching costs from one manufacturer to another, especially with a significant amount of after-sales service, can somewhat reduce the level of competition that threatens a given firm. And the pre-provided opportunities can make it unprofitable or simply impossible to switch to another manufacturer.

Market exit barriers act in the direction of increasing competition in the market. If the transition to another commodity market, to another industry or field of activity is associated with significant costs (liquidation of unnecessary fixed assets, employment and retraining of personnel, etc.), then one can expect greater resistance from firms being forced out of the market.

Penetration barriers to the market are related to the previous factor, but act in the opposite direction, i.e., an increase in barriers helps to reduce competition, and vice versa. This is due to the need for significant initial investment, with the acquisition of specialized knowledge and qualifications, etc. The more differentiation by types of technology, features of product performance, the higher the penetration barriers. In this case, firms already operating in the market have advantages over newly emerging competitors due to their focus on a specific customer, existing experience, and business reputation.

Situation in related markets has a significant impact on the competition in a given market. High level competition in adjacent markets, as a rule, exacerbates the struggle in the analyzed market.

Competitive Firms' Strategies, operating in the market are examined in order to identify the similarities and differences in the strategic attitudes of competitors so that if the majority of firms adhere to the same strategy, then the level of competition increases. Conversely, if the majority of firms follow different strategies, the level of competition decreases.

Market attractiveness this product largely determines the level of competition. The large profits made by the pioneer firms and the expected growth in demand for this product make its market attractive to other enterprises and cause a rapid influx of competitors.

Other blocks are considered similarly (see Table 13.1) and diagnostics and analysis of other factors determining competition in the analyzed market are provided. After identifying the main factors and trends in their change, it is possible to quantify the significance (power of influence) of these factors according to the degree of manifestation of their signs in the market; the possible nature of their change. Based on this, a general conclusion can be made about the general level of competition in the market.

An expert survey can be used to assess competition factors. As experts, the leading specialists of the given enterprise or independent external specialists who are well aware of this market are involved. Experts assess each factor that characterizes competition in a given market (Table 13.1). A three-point assessment system is proposed, presented in table. 13.2.

Table 13.2 Scoring system for assessing competitive factors

In addition to the fact that the factors considered are manifested in the market to varying degrees, they have different effects on competition. To account for the relative importance various factors, the weight of each of them is introduced into the competition assessment model. To simplify the analysis, we can consider the weights not of individual factors, but of entire groups. In our example (Table 13.1) there are six such groups. The sum of the weights of all groups of factors should be equal to 1.

Considering all this, it is possible to determine the weighted average score of the influence of all factors, taking into account their importance and the degree to which they appear in the analyzed market:

(13.1)

where is the point assessment of the degree of manifestation of the -th factor in the market by the -th expert;

Number of experts;

The coefficient of importance of the th factor;

The weighted average score obtained as a result of the calculation is commensurate with the scale shown in Fig. 13.1.

Based on the comparison with the figure, the following conclusions are drawn:

The level of competition is very high if the weighted average score obtained falls within the interval

, where is the score corresponding to the case of weak manifestation of competition factors in the market; - a score corresponding to the case of a clear manifestation of competition factors in the market;

Competition is high if the weighted average falls within the range of 3;

Competition is moderate if the weighted average falls within the range of 2;

The level of competition is diminished if the weighted average score falls within the range of 1.

In addition, at the stage of analysis, it is possible to make a forecast of the development of competition in the market based on predictive estimates of changes in the action of each of the factors. The following scale can be used to assess the predicted change:

The effect of the factor will increase in the future;

The factor will remain stable;

The factor will weaken.

Based on the obtained expert assessments of the forecast of the development of each of the factors, the weighted average assessment of the forecast of the development of the forces of competition in the market is determined:

(13.2)

where is the point estimate by the ith expert of the forecast for the development of the ith factor;

Number of experts;

The coefficient of the importance of the th factor, fraction of one;

The number of factors considered.

In the case when the weighted average estimate of the forecast falls within the interval (0.25; 1), it is concluded that the strength of competition in the market is increasing; (-0.25; 0.25) - the level of competition remains stable; (-1; -0.25) - will go down (Fig.13.2).

It is advisable to formalize the results of the analysis performed in the following forms: in the form of text, in the form of a text table (Table 13.3), in the form of a diagram (Fig. 13.3).