What They Are and How to Choose the Right Model of Market Behavior

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Any company exists in a dynamic market environment and constantly interacts with various competitors. Entrepreneurs fight for customers, market share and profit.

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The winners are usually those companies that can correctly analyze the market, their competitors, identify and use the strengths of their business processes. And on the basis of this information, select and create the most optimal behavior model. All this is connected with the creation of a competitive strategy.

In this article, we will take a closer look at what competitive strategies are. We will analyze what types experts distinguish and how to choose them correctly. In addition, we will learn what to consider when developing a competitive strategy that will help your company stand out from its competitors and achieve its goals.

What is a company's competitive strategy
A competitive strategy is a carefully developed long-term plan of action and a bolivia phone number list business model that is aimed at achieving a leading market position. Simply put, a company chooses its development path and a set of potential priorities that allow it to maintain competitiveness.

An organization usually operates according to a certain pattern or chooses a model of behavior:

emphasis on product quality and service;
emphasis on production volume;
emphasis on the uniqueness of a product or service;
policy of maximum cost reduction, etc.
The priority tasks are to ensure the company’s stable position in the market, increase its attractiveness to consumers and increase profits.


Michael Porter's Types of Competitive Strategies
In the late 70s of the last century, the concept of "competitive strategy" was introduced by the American economist, the founder of competitive analysis - Michael Porter. It was he who introduced the first classification of types of competitive strategies, which is considered especially relevant today.

The researcher made several observations and identified one pattern. The results showed that firms that were successful and achieved leading positions in their industry relied on one of three types of strategies: cost leadership strategy, differentiation strategy, and focus strategy.