Competitive Business Strategy

Chapter 3. Analysis of existing approaches to the development of a competitive business strategy

3.1. The essence of the competitive strategy of the company and its type characteristic

Features of development of an enterprise, namely the understanding of quantitative and qualitative changes that are capable of improving the social value of construction potential, it is expedient to unite in the concept of "development strategy." In other words, development strategy of construction potential of the enterprises aimed at improving its efficiency for different interested parties.

The key point of creation of algorithm of an assessment of development strategy of the enterprise is the answer to a question: "What is the strategy?” Assuming that the

It should be noted that the intensive growth of the enterprise justifies itself only when it is not determined full use of opportunities of the current goods and the markets. For definition of opportunities of intensive growth, F. Kotler recommends to use I. Ansoff’s matrix.

There are three main types of intensive growth: penetration on the market - search of ways of increase in sale of the goods in the existing markets by means of more aggressive marketing policy; expansion of borders of the market – attempt to increase sales, seizing the new markets due to introduction on them of already existing goods; development of goods (work, services) – attempt to increase sales due to creation new or improvements of old goods (works, services) for already existing markets. The main directions of opportunities for growth according to R. Grant are specified in table 3.1.

Table 3.1 - Main directions of growth opportunities (12)

Intensive growth Integration growth Diversified

Strategy of the blue ocean is a continuous movement from red oceans to blue. To evade from competitive struggle, it is necessary to have focus, to be different from competitors and the interesting slogan. While they are unique, there is no need to look for new blue oceans, it is necessary to use as much as possible existing opportunities. As soon as the competition at the ocean increases, the offer exceeds demand, it is necessary to begin search of the new blue ocean.

The carried-out analysis gives the chance to form idea of the main development strategies, however, it is not comprehensive. Classical and modern development strategies have only advisory nature, and therefore, for their successful application it is necessary not only to make the analysis of the environment, competitors and to choose respectively development strategy, but it is necessary to analyze experience of predecessors, to use whenever possible various methods and techniques for the analysis, but not to concentrate only on