Examples Of Competitive Strategy

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• Competitive Strategy: With the introduction of the competitive strategy, the company has to consider their competitors, which are influencing their own behaviour. If a company wants to survive successfully in a market – they have to be the leader in at least one field. The four different fields are as follows: • Competitor Behaviour: In order to develop and use the competitive behaviour strategy, all the actions of the competitors must be considered. Therefore the following Matrix can help a company to define their special behaviour: Innovative: Imitative: Competitive avoidance Avoid Adaption Competitive facing: Conflict Cooperation The dimensions “innovative” and “imitative” refers to the general alignment of the corporate transactions.…show more content…
It contains all decisions and actions in order to design a product according to the needs of the customers and moreover, to create a market conform performance program. Thus, the main parts of the product politic are the product quality, design, packaging, branding and the service. Next to these points, it contains the policy of the program, in terms of innovation, variation, differentiation and elimination. Place: Place means the policy of distribution and sales. It is all about the channels. What is the best way to offer the product to the customers?! Nowadays many companies decide for a multi-channel system. Apart from this point, the logistic plays an important role in the place policy. It concerns the transport, equipment and the preferred location of the company. Promotion: The promotion policy is also called the speaking tube of the marketing. The main purpose of the promotion is to inform the main target about the offers of a company. Moreover, the promotion is responsible for publicise new products or performances and therefore to submit the public the best image of a company. Common tools for an efficient promotion are for instance advertisement, sales promotion, public relation, sponsoring and trade…show more content…
There are several possibilities to set up a budget. A very simple way is to use a certain percentage from the sales or even from the revenue of the last year. Companies can also take their direct competitors as an orientation. Nevertheless, it is often very hard to get the correct information. A common and rational way is to use the cero-based-budgeting tool. Therefore, every department has to create a list, including all actions are planned referring to the marketing plan and referring to a business year. To complete this list it is necessary to add the approximate costs to every action on this list. In the second step, the department must add priorities to the list. The third step includes the budget, which is predefined by the general management. Now, all actions need to be sum up until the budget line is reached. All actions over this line can be
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