<<
>>

Management of competitiveness of retail trade enterprises

Today to take in the lead position on roar, especially in the light of the analysis stated in paragraph 1.1, obviously not simply enough to study the market, to evaluate the market position. In the conditions of the most severe competitiveness in the market of retail trading operators the enterprise should develop, or to use already developed strategy which will allow to have long enough period operating effect on competitiveness of this enterprise.

In the light of this situation working out of a management method by competitiveness becomes one of the major problems of the enterprise without which decision a retail business difficultly successfully to act in the market and to reach the basic. The purposes of activity of any organisation - profit maximisations.

Questions of formation and functioning of management methods by competitiveness of retail trade enterprises practically it is not considered in the modern scientific literature if there are workings out they are the property of retail operators, and frequently are the adapted versions of workings out for the foreign market and are applied in those retail trade systems which "have come" on the Russian market from abroad, type «Metro Cash ’ and ’ Carry».

The author the following approach to working out and consideration of elements of the methodical approach to management of competitiveness is offered.

The methodical approach means availability on the one hand the subject, on the other hand - object of effect.

At level of the organisation the subject of management the enterprise, to be exact its administrative personnel enters, and as object all components of competitiveness of the organisation act.

In turn the management method competitiveness retail trading the organisations represents a set of consecutive actions and the stages meaning by self set of means and receptions with which help effect on all spectrum of components of competitiveness of retail trade enterprise for the purpose of reception of achievement of desirable level of competitiveness is carried out.

The regularity of the given effect is defined by company management and depends on the planning horizon accepted in the company which in turn depends on stability of environment and intensity of development of the company.

The methodical approach to management of competitiveness consists of following consecutive stages which are resulted in the Appendix 11.

Management of competitiveness consists in that, having operating effect on organisation activity, optimum image to change factors of its competitiveness for achievement of objects in view in the conditions of effect ’ an environment.

Management is carried out as the directed effect on optimisation of indicators influencing level of competitiveness or is direct (external indicators), or oposredovanno (internal indicators).

In managerial process there is an interaction between object of management and operating subsystem which consists in an exchange of information, financial and material streams among themselves, internal and an environment.

Management is carried out as the directed effect on optimisation of indicators influencing level of competitiveness or is direct (external indicators), or oposredovanno (internal indicators).

In managerial process there is an interaction between ’ object of management and operating subsystem which consists in an exchange of information, financial and material streams among themselves, internal and an environment.

Let's consider in more details the contents of each stage of management of competitiveness of retail trade enterprise.

1. An estimation of competitiveness of retail trade enterprise.

At the given stage account of the integrated rate of competitiveness, described by the author in paragraph 2.2 is carried out. On the basis of the received indicator the estimation of rates of competitiveness of the investigated enterprise among other companies - competitors and definition of the reference competitor is made. •

2. The analysis of influence of competitiveness on a competitive item of trading organisation.

Enough of scientists attended to questions of an estimation of a competitive item of the organisation and in the literature on marketing and strategic management the given question is investigated from the different points of view. As typical examples following matrixes can serve: market growth - a market share (BCG), appeal r§nka - the competitive status (GEMK), it is detailed ojisannye in the literature [81, 98]. Though the given strategy concern to «portfelnym to strategy», they with success can be used and for definition of a competitive item of the organisation as a whole.

In some works of domestic economists [4, 106] there is an identification of competitive items to a market share. The author supports the given postulate.

In case of definition of a competitive item of retail trade enterprise it is more expedient, according to the author, to use M.Portera's general competitive matrix [116, 336], using model of competitive forces. The given method is more applicable in this case since at existing variety of types • retail businesses strategy - «lead in a niche» is most comprehensible.

Proceeding from the purposes of the analysis and features of activity of trading organisation on the given commodity market, it is possible to make selection of the most comprehensible matrix of the analysis of a competitive item of firm.

After definition of a competitive item of trading organisation it is necessary to add the obtained data about level se competitiveness. It is possible to assume, that competitiveness and a competitive item close enough concepts on the economic sense, being in high correlation interrelation. It is necessary to notice, that unequivocally true the given assertion will be only in case of high stability of a market and competitive situation. In the conditions of constantly changed competitive environment situations are possible, when the organisation with a high market share (with a strong competitive item) can have low competitiveness owing to suddenly changed competitive situation. And on the contrary, just the entered market the beginner, "dark horse", can have a weak competitive item, but thus high competitiveness.

In the first paragraph of the second chapter the author had been considered a question on a defining element of a competitive item of trading organisation - competitiveness. On the basis of level of the
Competitiveness the organisation takes this or that place (item) in competitive space. Certain level of competitiveness (an integrated indicator) forms a basis for definition of a direction of movement for increase of the given level (change of a competitive item) and defines speed of the given changes. The actions directed on increase of level of competitiveness in baking of the certain period of time lead to change of a competitive item of the organisation.

3. Definition of a target competitive item of trading organisation.

Having defined competitive position of the company during the concrete moment of time,

The operating structure of the company should make the decision on what competitive item should take (or to save) the company in the future.

With a competitiveness high level, but taking a weak competitive market power, it is necessary to strengthen the companies only to (strengthen) the resource base for strengthening of the competitive item at preservation of already reached level of competitiveness. For the companies with strong competitive items, but with low level of competitiveness, there is a real threat to lose the item. For prevention uteri the competitive item to such companies should develop and introduce strategy of development of the company directed on increase of level of competitiveness of the organisation.

4. Definition of directions of change of level of competitiveness (the list of the indicators subject to change).

After a choice of a target competitive item, the organisation should define on what directions of activity to it it is necessary to have operating effect to raise the integrated rate of competitiveness and to take the planned market position.

The list of directions requiring operating effect is formed at an evaluation stage of level of competitiveness. The approximate structure of the given indicators is described in chapter 1 (paragraph 1.4.) also makes group of outside indicators of activity of retail trading organisation.

5. Revealing of possible competitive advantages in the set directions.

In chapter 1 we stayed on a question of definition of an essence of concept competitiveness of the organisation, according to the author, competitiveness of firm is result of cumulative action of its competitive advantages. Thus, to raise competitiveness of the organisation on any indicator se activity, it is necessary to achieve in it competitive
Advantages. However the given approach narrows submission about management of competitiveness a little. It is not necessary to forget that influence competitiveness level not only competitive advantages, but also competitive defects. Activity on liquidation of competitive defects can not bring lead on the given concrete item, but will raise the general integrated rate of competitiveness.

Therefore, though the author also will mainly consider questions of increase of level of competitive advantages, but equally all told will concern and liquidation of competitive defects.

Often in the economic literature on competitive advantages speak as about the fact of the superiority of the company over the competitors, the given fact is fixed as a result of real and obvious preferences of consumers [4,48]

That the given fact has been fixed in the future, it is necessary to evaluate correctly promising, potential competitive advantages. Achievements of a high level of the given perspective directions can become a basis of competitive strategy of trading organisation.

Thus, process of working out of competitive strategy should begin with a stage of search of all competitive advantages which the trading organisation can potentially have.

The model of search of potential competitive advantages is simple enough and is based on questioning of end users and commissions of experts. On the basis of questionnaires of end users the list and indicators of a base of comparison (reference indicators) is formed, on the basis of questionnaires of experts are defined items of competitor firms on the given indicators.

The questionnaire resulted in the Appendix 12, it is offered to fill in to a commission of experts and group of consumers. That results were representative, follows from the general number of the questionnaires which have been filled in with end users, in account to accept only what are filled in by constant consumers, i.e. term of visiting of the given which shop exceeds 6 months.

*

On the basis of the received indicators profiles of the investigated company and the companies - competitors are under construction. Indicators of the investigated company is an average indicator of expert judgements and estimations of consumers, and indicators of the companies - competitors - only estimations of experts. As result the constructed profile of competing trading organisations resulted in the Appendix 13 will serve.

On the basis of the constructed profiles it is possible to define at once the areas requiring operating interference.

As it was marked above, the scheme of work of the given model is simple enough and allows to make gaugings often enough (not less often than 1 time in 6 months).

As result of the given research we can obtain following data:

1. What inquiries (specific characteristics) consumers will be satisfied with more effectively investigated company in comparison with the companies - competitors, thus these inquiries correspond to a set of competitive advantages already existing at the company;

2. What inquiries (specific characteristics) consumers will be more effectively satisfied by the companies - competitors and they correspond to competitive advantages of competitors}

3. What inquiries of consumers (specific characteristics) are not satisfied to the full neither the investigated company, nor the companies - competitors; they will correspond to those potential competitive advantages which the company if will develop can acquire or will strengthen the given competitive advantages;

4. What inquiries of consumers (specific characteristics) are not satisfied with any of the companies - competitors, satisfaction of the given requirements are potential competitive advantages which the investigated company can acquire, having advanced, thus, the competitors.

On the basis of the conducted analysis the list both real, and potential competitive advantages which require operating interference is formed.

6. The analysis of the revealed competitive advantages. The revealed competitive advantages differ between (self not

Only on difficulty of their achievement (requiring deduction, strengthenings, potential), but also on degree of their influence on competitiveness of the organisation.

Depending on influence degree competitive advantages can have following characteristics:

• the uniqueness of the competitive advantage characterising essential differences of given advantage from advantage of competitors and difficulty of its copying;

• an orientation of the competitive advantage, characterising the subject of effect;

• degree of expressiveness (brightness) of competitive advantage to the consumer, reflecting ease of perception and clearness;

• degree of value of competitive advantage to the consumers, the characterising importance of the given advantage to consumers.

Stable competitive advantage should be clear for the consumer (easily perceived), to bear essential benefit for it (to conduct to satisfaction) and to be difficultly copied for competitors [4,112].

Matrix construction (drawing 24) following type will be following step: complexity of achievement of competitive advantages - stability (value) of competitive advantage.

The matrix consists of nine kvadrantov, each of which corresponds to certain certain characteristics of competitive advantages and degree of their influence on competitiveness of the organisation. Kvadrantam certain names which depend on quantity expended on acquisition of the given advantage of resources and value of the given competitive advantages are pirated.

On the basis of the given matrix it is possible to make the analysis and to evaluate degree of utility of each competitive advantage (both available, and potential) for the company depending on complexity of acquisition of the given competitive advantage.

The vain

Diligence

«To dig or not to dig?»

«Through thorns to stars!»

The potential

WITH

To

S

X

The requiring
f

*

Strengthenings
5
yo

ABOUT

X

M

With;

About

Already
The available

«To dig or not to dig?»

It is necessary

To work!

It is necessary to work!

The vain

Work

«Though wool a shred»

Accept

Congratulations

The low

Average

' High

Stability (value) KP

Drawing 24 - the Matrix of the analysis of competitive advantages.

1. A choice of target competitive advantages.

On the basis of the conducted analysis the trade enterprise management makes selection of competitive advantages on which operating effect of the company will be directed, fixing them in the form of the purposes which are necessary for reaching as a result of the developed and realised strategy.

The given competitive advantages also will be considered target for a certain period in which current the given strategy will be applied.

8. Working out of competitive strategy for achievement of target competitive advantages.

After definition of the intermediate purpose in the form of the list of acquired competitive advantages, the company management should develop competitive strategy which will allow the company to reach Those purposes which are already defined.

The polygon of competitiveness of system visually shows, that factors of its success are:

• adaptability of system to market conditions;

• the superiority over the competitor on quality of rendering of services;

• to simplicity of practicability;

• to the price;

• to a number of other indicators, individual for each concrete

Case;

• uniqueness of system of trading service.

Process of working out of strategy of development of the enterprises in general and competitive strategy is in particular in detail enough described in modern works on marketing and management [12; 46; 47; 48; 51; 85], therefore to the given work we will not stay on the given question as the area of research of the given work lays in other direction. Principles of working out of strategy of achievement of general purposes of activity of the enterprise are absolutely identical to principles of working out of strategy of achievement of target competitive advantages.

The author considers, that it is necessary to note the following: depending on type of competitive advantages on which achievement the competitive strategy is directed, it is possible to divide actually competitive strategy on saving the competitive items, strengthening these items and developing the given items for the purpose of employment of an in the lead market position. Proceeding from interrelation between competitiveness and competitive advantages which has been investigated earlier, it is possible to assert, that the given kinds of strategy similarly influence and competitiveness, i.e. save, strengthen and develop it.

The technique of formation of competitive strategy is presented by the author in the following sequence of steps:

1. The marketing analysis of environment (external and internal) the investigated enterprise, i.e. an estimation of a competitive situation, identification of strong and weak components of system of competitive components, revealing of favorable possibilities;

2. Market segment allocation, the most important for the trade enterprise activity, with allowance for stable traditions of the Russian spending pattern;

3. Formation of a set of elements, i.e. definition of key characteristics of elements and their relative value for consumers, in case of retail trade as it has already been considered in the previous paragraph, is external keeping competitiveness;

4. As competitive strategy to apply system of a quality management which just and is calculated for achievement of the maximum quality indicators on each element of system.

9. Realisation of competitive strategy.

A lot of attention in the special literature [4 also is given a question of realisation of competitive strategy; 51; 85], therefore in the given work we nanosecond will stay in detail on illumination of the given question.

It is necessary to stay only on a following moment: strategy realisation directly depends on enterprise specific goals at present time - a main objective — profit maximisation, at some stages of development enterprise development can be replaced by such purposes, as share capital addition of value.

Naturally, чіо competitiveness components for the given period will vary and as consequence - replacement of strategy and tactics of achievement of in the lead position will follow.

10. The analysis of achievements of competitive advantages and competitiveness change.

Conditio sine qua non of functioning of any control system is the control condition, both behind management mechanics, and behind the reached results.

Data which receive in the course of the control underlie the subsequent correcting actions.

The change analysis (preservations, strengthenings) competitive advantages is conducted under the scheme described in the fifth stage of the mechanism. Managements
Competitiveness. The difference consists only that now all are subject to the analysis not the major for characteristic consumers but only on what the company planned to achieve certain results. This analysis will allow to see clearly, what successes the company has reached.

Acquired (strengthened, saved) competitive advantages and the liquidated (minimised) competitive defects will influence competitiveness of retail trading organisation. Change of level of competitiveness of trading organisation can be evaluated on change of an integrated indicator before realisation of a controlling mechanism by competitiveness.

11 and the final stage. Working out of correcting actions and adaptation of competitive strategy.

As the last stage the development cycle of correcting actions, depending on that serves, was how much successful strategy is developed and realised, correcting actions will be so significant. At this stage there is a definition of the following starting point to start realisation of a following stage of strategy i.e. what will be the following stage - the first, the fifth or the seventh.

Competitive strategy is under construction on the basis of many factors and directions of market activity of the organisation since the basis of competitive advantages can lay in absolutely various areas of functioning of the enterprise.

As it has been considered in the first part of the given work, specificity of retail trade is shown in many external aspects of functioning of retail trade enterprise, such as an establishment of close mutually advantageous relations with target consumers, effective construction and optimisation of channels of distribution, a constancy and completeness of range, competitive prices.

Conclusions on the second chapter: main principle of increase

Competitiveness of retail trade enterprises and competition management consists that, using the developed techniques, the retail trade enterprise can achieve market success (to raise the competitiveness) using "peace", malozatratnuju and at the same time effective competitive strategy:

1. Definition of target consumers;

2. Definition of target competitive advantages to target consumers;

3. Formation and realisation of competitive strategy for achievement of these competitive advantages and as consequence - competitiveness increase;

4. Competitive strategy in this case - the developed and introduced control system of marketing logistics which requires adaptation of organizational structure;

5. Creation of effective organizational structure;

6. Transfer of a competitiveness from level of retail dealers on more high level, level kooperirovannyh structures (trade enterprise - the manufacturer), by means of an establishment of closer relations with end users on the one hand and realisations of joint programs of advancement of production in a network - with other of the parties.

Advantages of the similar approach to management competition and management of competitiveness consists in the following:

1. The company conducts aggressive competition, but only among the direct competitors, the quantity and which structure is defined by certain target consumers and a shop category;

2. The retail trade enterprises, which target consumers of nanoseconds are identical to target consumers of the investigated company, do not lose practically the clients and do not pass in the category of competitors that allows to avoid additional expenditures connected with aggressive competitive behaviour;

3. The company saves means (resources) for extensive expansion of scale of activity (attraction of new clients at the expense of realisation of joint programs of a sales promotion with the companies manufacturers);

4. The company at the expense of cooperation with the companies manufacturers shortens length of a distributive chain that leads to decrease total marzhinalnoj extra charges and to decrease in the half-internal price for production.

It is possible to carry to defects of the given approach:

1. Growth rate of scales of activity of nanosecond is high;

2. For realisation of the offered techniques it is necessary to carry out regular marketing researches.

In addition it is necessary to note, for the companies not enough large resources working in the conditions of existing deficiency, postepennyj'rost is more preferable, than spasmodic since the company has time to acquire necessary additional resources. For such category of retail shops the first defect is advantage.

<< | >>
A source: Batsanina Irina Aleksandrovna. Improving the competitiveness of enterprises on the basis of improving the organization of distribution logistics. Thesis for the degree of candidate of economic sciences. Moscow - 2005. 2005

More on topic Management of competitiveness of retail trade enterprises:

  1. 2.3 Management of competitiveness of retail trade enterprises
  2. Hierarchical structure of rates of competitiveness of the enterprises of retail trade
  3. the Appendix 6. Features of sphere of retail trade and their influence nja a competitiveness in branches and competitiveness of retail businesses.
  4. 2. A substantiation of directions and methods of increase of competitiveness of retail trade enterprises on the basis of approaches to competitiveness as element of functioning of marketing logistics
  5. a substantiation of directions and methods of increase of competitiveness of retail trade enterprises on the basis of approaches to competitiveness as element of functioning of marketing logistics
  6. 3.1 Features of construction and functioning of marketing logistics of retail trade enterprises as tool of increase of competitiveness
  7. 3.1 Features of construction and functioning of marketing logistics of retail trade enterprises as tool of increase of competitiveness
  8. Concept of competitiveness of the enterprises of retail trade and definition of making elements
  9. 2.1 Concepts of competitiveness of the enterprises of retail trade and definition of making elements
  10. Research of existing methods of valuation of competitiveness of the enterprises and working out of a complex technique of increase and an estimation of competitiveness for trade enterprises