Competitive strategies
19 May 2009 - 17:27
The competitive or general strategies are strategies that consider to the company like a whole, that is to say, are strategies that guide and decide the course of this one.
The main competitive or general strategies that can use a company are:
Integration forwards
This strategy consists of acquiring the possession or a greater control of the distributers or lovers of detail.
Examples of use: when we acquired one of our distributers, when we abrimos our own points of sale.
Examples of when to use: when the distributers are incapable to satisfy the needs with distribution of the company, when the amount of distributers is so little, that acquiring them it could mean a competitive advantage before the other competitors; when the company counts on the resources necessary to distribute its own products to the final consumer, when the distributers or lovers of detail present/display high margins of utility, and to enter this business could mean a good opportunity of business.
Integration backwards
This strategy consists of acquiring the possession or a greater control of the suppliers.
Examples of use: when we created one second company that is in charge to produce the consumptions that need first, when we obtained that a supplier sells their merchandize to us to consigment.
Examples of when to use: when the suppliers are not reliable, when they are too expensive, when they are not able to satisfy the needs with the company, when the company counts on the resources necessary to provide its own consumptions, when the suppliers present/display high margins of gains, and to enter this business could be a good opportunity of business.
Horizontal integration
This strategy consists of acquiring the possession or a greater control of the competitors.
Examples of use: when we megred with a competing company we acquired, it we absorb or it.
Examples of when to use: when the fusion, acquisition or absorption of a competing company could mean an increase of the scale economies, when the union of resources or competitions could mean a competitive advantage before other competitors.
Penetration in the market
This strategy consists of looking for a participation major in the market, through a effort to increase to the customer or the sales.
Examples of use: when we make use of specific strategies such as increase the number of salesmen, to increase the number of points of sale, to lift the cost in publicity, to add new promotions of sales, etc.
Examples of when to use: when the conditions of the market are favorable, when the markets are not saturated of competitors or the products that we made or we commercialized.
Development of market
This strategy consists of entering new markets with present products, that is to say, consists of extending the geographic cover.
Examples of use: when we abrimos a branch in another locality, when we exported our products.
Examples of when to use: when new markets exist that are attractive or that are not saturated, when the company counts on the resources and the necessary experience like being able to penetrate in new markets.
Development of the product
This strategy consists of modifying or improving present products, or to design totally new others.
Examples of use: when we included new characteristics or attributes to him to our products.
Examples of when to use: when it is counted on a successful product, but that is in the stage of maturity of the service life of the product; when it is necessary to adapt our products to the technological advances.
Concentric diversification
It consists of adding new products that are related to present products.
Examples of use: when we counted on a business that produces pants of jeans, and we decided to make portfolios of jeans.
Examples of when to use: when to add new products, but related, it could increase the sale of present products; when the present products are in the stage of declination of the service life of the product.
Diversification conglomerate
It consists of adding new products that are not related to present products.
Examples of use: when we counted on an article business of dressing, and decided abrir a food business.
Examples of when to use: when we competed in an industry that grows or nothing slowly, when the opportunity appears to enter new business that is not related to that we have.
Horizontal diversification
It consists of adding new products that are not related to the present products, but that are destined to the present clients.
Examples of use: when our business consists of the sale of pants jeans, and we decided to penetrate in the sale of shoes.
Examples of when to use: when it is told on channels of distribution that could be useful to commercialize new products nonrelated, but appointed the present clients.
Shared risk (joint venture)
This strategy occurs when two companies or more form a society or partnership by a period of determined time, without it implies the loss of identity of these companies.
Examples of use: when we signed a contract of risk shared with another company with the purpose of to take an opportunity business that has appeared.
Examples of when to use: when to sign a contract of joint venture could be a good opportunity to share or to complement resources or competitions, when an opportunity appears that requires of a good amount of resources and risk, when two small companies have problems to compete with a great one.
Shrinking
It consists of regrouping by means of the reduction of costs or assets.
Examples of use: when we sell lands or assets, when we eliminated lines of product, when we closed branches, when we make a cut of workers, when we declared bankruptcy.
Examples of when to use: when it is wanted to fortify the distinguishing competition of the company, when there is few sales, utilities or yield.
Disinvestment
The division sale of or part of the company consists of.
Examples of use: when we left the business of the textiles, and only we dedicated ourselves to the business of foods.
Examples of when to use: when we needed to reunite capital for new investments, when we are wanted to undo of a business that is not profitable, that requires too much capital, or that does not fit with the other activities of the company; when the shrinking strategy has been followed, but the awaited results have not been obtained.
Liquidation
It consists of selling in parts and by their tangible value, the assets of the company.
Examples of use: when once we have declared bankruptcy, we decided to eliminate the company.
Examples of when to use: when more bond to stop operating that to continue losing money, when the unique alternative is the bankruptcy, and it is wanted to obtain the greater amount of possible money by the assets of the company; when the shrinking strategy has been used and the one of disinvestment, and no of the two has obtained the awaited results.
In order to know more competitive or general strategies that can use a company, we invited to you to read the article generic strategies of Michael Porter.
Labels: Management of businesses
Compártelo
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