Big encyclopedia of oil and gas. Strategy as a systematic approach to managing the prospective development of an enterprise

Strategy - an integrated model of actions designed to achieve the goals of the enterprise. The content of the strategy is a set of decision rules used to determine the main directions of activity.

In the first case

In the second case

The main distinguishing features of the strategy were identified by I. Ansoff in his book "Strategic Management", 1989:

1. Strategy development process does not end with any immediate action. It usually ends with the establishment of general directions, the promotion of which will ensure the growth and strengthening of the company's position.

2. The formulated strategy should be used to develop strategic projects search method. The role of strategy in search is, first, to help focus attention on certain areas and opportunities; second, to discard all other possibilities as incompatible with the strategy.

3. The need for a strategy disappears as soon as the real course of development will bring the organization to the desired events.

4. During strategy formulation cannot be foreseen all the possibilities that will open up when drafting specific activities. Therefore, one has to use highly generalized, incomplete and inaccurate information about various alternatives.

5. As the search process uncovers specific alternatives, more accurate information emerges. However, it may call into question the validity of the original strategic choice. Therefore, the successful use of the strategy is impossible without feedback.

6. Since both strategies and benchmarks are used to select projects, it may seem that they are one and the same. But these are different things. The benchmark is the goal that the firm is trying to achieve, and the strategy is means to an end. Landmarks are a higher level of decision making. A strategy that is justified under one set of benchmarks will not be justified if the organization's benchmarks change.

7. Finally, strategy and guidelines interchangeable both in individual moments and at various levels of the organization. Some parameters of efficiency (for example, market share) may serve as benchmarks for the firm at one moment, and become its strategy at another. Further, since guidelines and strategies are developed within the organization, a typical hierarchy arises: what is at the top levels of management are elements of the strategy, at the lower turns into guidelines.

51. Strategy of the organization: a brief description of, meaning.

Strategy - an integrated model of actions designed to achieve the goals of the enterprise. The content of the strategy is a set of decision rules used to determine the main directions of activity.

There are two opposing views on the understanding of strategy in the literature.

In the first case strategy is a specific long-term plan to achieve some goal, and strategy development is the process of finding some goal and drawing up a long-term plan. This approach is based on the fact that all emerging changes are predictable, the processes occurring in the environment are deterministic and can be fully controlled and managed.

In the second case strategy is understood as a long-term qualitatively defined direction of development of an enterprise, relating to the scope, means and form of its activity, the system of intra-production relations, as well as the position of the enterprise in the environment.

A market strategy, or rather its development, is important for the organization's activities. It is necessary so that the efforts aimed at achieving the goals of the organization are not in vain in an unpredictable external environment.

Market strategy allows:

1. Accelerate consideration of strategic alternatives.

What is happening in the external environment that creates opportunities and threats that need to be promptly and correctly responded to? What are the strategic challenges facing firms? What strategy options should be considered?

2. Take a long-term view of things.

Short-term orientation has many seductive advantages, but often leads to strategic mistakes.

3. Justify resource allocation.

Small but promising (or in the planning stage) areas suffer from a lack of resources, and large areas with “problems” absorb them in undeserved quantities.

4. Create a strategic management system.

Focusing on strategic assets and skills, setting goals and developing programs with strategic directions in mind.

5. Provide horizontal and vertical communications and functioning of coordinating systems.

If problems arise, taking into account the market strategy, the efforts and activities of the organization and its divisions are coordinated.

6. Help the company cope with change.

If the environment is truly stable and provides satisfactory sales volumes, there is little need for strategic change, but most companies operate in a constantly changing environment, so a timely change in strategy will direct the organization's efforts in the right direction.

Without a developed market strategy, organizations would act inefficiently, blindly. Such an organization would not be able to stay on the market for a long time, to maintain its competitiveness at a high level. A change in the external environment would take the organization by surprise and it would not be able to cope with the problems that arose. Therefore, in order to avoid bankruptcy, the organization must develop an up-to-date market strategy and conduct its activities as if according to a well-defined program.

Types of strategies.

1) Basic development strategies:

Limited growth. This strategy is used by most organizations in established industries with stable technology. With a strategy limited growth development goals are set "from what has been achieved" and are adjusted when the situation changes. If management is generally satisfied with the position of the firm, then it is obvious that in the future it will follow the same strategy, since this is the easiest and least risky course of action.

Growth. This strategy is most often used in dynamic industries with rapidly changing technology. It is characterized by a significant annual excess of the level of development over the level of the previous year.

Reduction or strategy of last resort - setting goals below the level achieved in the past. This strategy is chosen by the organization least often. The reduction strategy is resorted to when the performance of the organization acquires a steady downward trend, and no measures can change this situation.

Combined strategy. This strategy is any combination of the considered alternatives - limited growth, growth and reduction. Combined strategy adhere, as a rule, to large organizations that are actively operating in several industries.

2) Competitive strategy- the choice between focusing on the entire market or on its part, as well as between the main competitive advantage (low price of the product or its distinctive features).

Types of competitive strategy:

Cost Leadership - The desire to become a supplier of the cheapest goods and services that are attractive to a wide range of consumers.

Differentiation strategy - The desire to individualize their products (according to some of the qualities of the product - packaging, dimensions, after-sales service, environmental friendliness, etc.) so that it differs from competitors' products and thus becomes more attractive to a wide range of customers.

Concentration strategy - Orientation to isolated market segments (to meet a specific need).

3) Portfolio strategy- the choice associated with the combination of various management objects (products, business units, enterprises, technologies, resources) among themselves and determining the place of each object among others. This solves the problem of obtaining a balanced portfolio.

For example, portfolio strategies are product strategy and corporate strategy.

Product strategy - a decision on the assortment and sales volumes of the main products manufactured by the enterprise. That is, decisions for each individual product - for example, to maintain sales, modify or withdraw from production, start developing a new product, etc.

Corporate strategy - a decision on individual enterprises that are part of a corporation (diversified company). For example, to increase the impact on the management of the enterprise by buying additional shares; sell the company; not interfere in the activities of the enterprise, etc. Thus, we are talking about the formation of a "portfolio of enterprises".

Similar information.

The company has four strategic alternatives:

1. limited growth,

3. reduction

4. a combination of these options.

1. Limited growth. The strategic alternative followed by most organizations is limited growth.

A limited growth strategy is characterized by setting goals from what has been achieved, adjusted for inflation. The limited growth strategy is applied in mature industries with static technology, when the organization as a whole is satisfied with its position. Organizations choose this alternative because it is the easiest, most convenient, and least risky course of action. Leadership, in general, does not like change. If a firm has been profitable in the past with a limited growth strategy, then it is likely to continue to do so in the future.

2. Growth. The growth strategy is implemented by annually significantly increasing the level of short-term and long-term goals above the level of the previous year's indicators.

The growth strategy is the second most frequently chosen alternative. It is used in dynamically developing industries with rapidly changing technologies. It can be followed by executives seeking to diversify their firms in order to exit stagnant markets. In an unsustainable industry, lack of growth can mean bankruptcy. In a static industry, lack of growth or failure to diversify can lead to market atrophy and no profits. Historically, our society has viewed growth as a beneficial phenomenon. Many shareholders view growth, especially short-term growth, as an immediate wealth gain. Unfortunately, many firms prefer short-term growth in exchange for long-term ruin.

Growth can be internal or external. Internal growth can occur by expanding the range of products. External growth can occur in related industries in the form of vertical or horizontal growth (for example, a manufacturer acquires a wholesale supplier firm or one manufacturing firm acquires another). Growth can lead to conglomerates, i.e. association of firms in unrelated industries.

3. Reduction. The alternative least often chosen by executives and often referred to as the strategy of last resort is the reduction strategy. The level of goals pursued is set below that achieved in the past. In fact, for many firms, downsizing can mean a healthy way to rationalize and reorient operations. Within the reduction alternative, there may be several options:

liquidation. The most radical reduction option is the complete sale of inventories and assets of the organization.

Clipping off the excess. Firms often find it advantageous to separate certain divisions or activities from themselves.

Downsizing and reorientation. In a sluggish economy, many firms find it necessary to cut some of their operations in an attempt to increase profits.

Downsizing strategies are most often used when a company's performance continues to deteriorate, during an economic downturn, or simply to save the organization.

4. Combination. This strategy is a combination of any of the three strategies mentioned: limited growth, growth, and contraction.

Strategies for combining all alternatives are likely to be pursued by large firms active in several industries.

Choosing a strategy. After management considers the available strategic alternatives, it then turns to a specific strategy. The goal is to select the strategic alternative that will maximize the organization's long-term performance. Although the choice overall strategy represents both a right and a responsibility of top management, the final choice has a profound impact on the entire organization.

The strategic choice made by the management of the enterprise is influenced by various factors:

Risk. What level of risk does management consider acceptable? Risk is a fact of life for a company, but a high degree of risk can destroy it.

Knowledge of past strategies. Often, consciously or unconsciously, management is influenced by past strategic alternatives chosen by the firm.

Reaction to the owners. Quite often, equity holders limit management's flexibility in choosing a particular strategic alternative.

Time factor. The time factor in decision making can contribute to the success or failure of an organization. The implementation of even a good idea at the wrong time can lead to the collapse of the organization.

The choice of strategy is the central moment of strategic planning. Often an organization chooses a strategy from several possible options.

It is very important for the manager to monitor how the strategy is being implemented. To do this, he needs to have a wide network of contacts and sources of information - both formal and informal. Common channels for obtaining information may include: conversations with subordinates, reading reports, analyzing recent performance, contacting customers, observing the actions of competitors, and listening to front-line employees in order to obtain first-hand information. The strategy manager must be sure that he receives reliable and accurate information and is in control of the situation. Important importance should be attached to informal communication, which can allow quick and easy access to information.

Implementation of the strategy. The task of this stage is to understand what needs to be done in order for the strategy to be implemented, work, and the planned deadlines for its implementation are observed. The implementation of the strategy falls within the scope of administrative tasks. It includes:

· creation organizational capacity for the successful implementation of the strategy;

management of the budget for the purpose of profitable allocation of funds;

Determination of the enterprise policy that ensures the implementation of the strategy;

motivation of employees for more effective work. If necessary, their responsibilities and nature of work should be modified in order to achieve the best results in implementing the strategy;

· linking the amount of remuneration with the achievement of intended results;

Creation of a favorable atmosphere within the enterprise for the successful implementation of the intended goal;

creation of internal conditions that provide the personnel of the enterprise with the possibility of daily effective performance of their strategic roles;

using best practices to continuously improve performance;

· providing the internal guidance needed to move forward with the implementation of the strategy and to oversee how the strategy is to be carried out.

These are the so-called certain basic requirements that must be met regardless of the characteristics of the enterprise.

Evaluation of the implementation of the strategy. The manager should be aware that strategic planning is a continuous process, and the tasks assigned to the enterprise are usually reviewed more than once. This is due to the emergence of new circumstances forcing to make adjustments. Sometimes even the long-term goals of the enterprise can be changed. Changing the forecast for the development of the enterprise, the development of new goals, as well as fluctuations in the market, entail an adjustment in the strategy.

The evaluation of the implementation of the strategy is carried out according to the following steps:

It is necessary to make sure that the current goals of the enterprise and its tasks exactly correspond to the general desires of the management of the enterprise and its strategy as a whole;

It is necessary to describe the product manufactured by the enterprise and assess its compliance with the current moment;

The manager must accurately define the segments of his customers, as well as take into account all the potential segments of the market in which the enterprise operates;

a consumer profile should be built that specifically defines the needs, benefits and purchasing criteria of product consumers this enterprise;

It is necessary to correctly identify the strategic units of the business and give them the correct assessment. Strategic Business Units (SBUs) - A competitive environment in which a business matches its product to a customer group or market. It is the strategic units of the business that define the business;

The manager must take into account all the forces of the industry that affect the strategic business units of the enterprise;

points of differentiation should be stable and distinct in the eyes of consumers of the enterprise;

· strategic conclusions for each strategic unit of business should coincide with the purposes and opportunities of the given enterprise;

· the implementation of a specific strategy and specific tactical moves should correspond to the resources of the enterprise and be successfully carried out at each stage.

Evaluation of the implementation of the strategy is inextricably linked with control, the main tasks of which are:

Determination of what and by what indicators to check;

assessment of the state of the controlled object in accordance with accepted standards, regulations or other reference indicators;

clarification of the reasons for deviations, if any, are revealed as a result of the assessment;

Making adjustments, if necessary and possible.

Typically, an organization chooses a strategy from several possible options. In doing so, she may encounter enough a large number alternative strategies.

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Corporate strategies include:

growth strategy.

The growth strategy assumes a significant increase in the level of short-term and long-term goals above the level of indicators of the previous period. It is used in dynamically developing areas, with rapidly changing technologies. This strategy is used by firms that seek to diversify. Growth can be:

internal, by expanding the range or creating new products that are in increasing demand (intensive growth);

external - in the form of vertical, horizontal integration or diversification.

Limited growth strategy (stabilization strategies).

The stabilization strategy is used by most enterprises. This strategy is characterized by setting goals from what has been achieved, adjusted for inflation. A limited growth strategy is applied in mature industries with static technology if the organization is generally satisfied with its position. This is the easier, most convenient and least risky way to achieve your goals.

Reduction strategy (last resort strategy).

With this strategy, the level of goals is set below those achieved in the past. Within this strategic alternative, there are three options:

liquidation through the complete sale of inventories and assets and liquidation of debt;

cutting off the excess involves the company's refusal from unprofitable divisions or from certain types of activities;

reorientation (reversal strategy) involves the reduction of some activities in order to increase the profitability of others.

Conditions for applying reduction strategies:

if the performance of the enterprise continues to deteriorate;

if the company has not been able to achieve the goals that it faces;

if the company is one of the weakest competitors in the area;

if the firm needs some internal reorganization.

A combination strategy is a combination of any of the three strategic alternatives. It is followed by large firms that are active in several areas.

The basic law of evolution says that there is nothing more fickle than success. Paradoxically, the most successful companies today may be the most vulnerable tomorrow. For example, many consider Microsoft's position in the computer world unshakable, but its founder and president, Bill Gates, says he is constantly haunted by a sense of fear that his organization will relax and let nimble competitors get past him. To stay on the wave of success, managers need to constantly improve their business strategy.

Business strategies are strategies for managing a portfolio of business areas. They ensure the achievement and retention of competitive advantages in a particular area of ​​business.

The business strategies of an enterprise include:

1. The product-market strategy is aimed at determining the types of specific products and technologies that the company will develop, areas and markets for the product. It serves as the basis for developing an enterprise marketing strategy. An enterprise, in order to function and develop, needs to develop (sell) a certain product, the sale of which it must carry out in a competitive market. Therefore, it is logical to start the development of business strategies for an enterprise with a product-market strategy. This strategy sets a certain direction in the development of both individual private strategies and the overall strategy of the enterprise as a whole.

2. Competitive strategy - a set of strategic decisions that determine the competitive behavior of an enterprise. Based on the general competitive strategies that Porter characterized.

The following factors (competitive forces) influence the choice of a competitive strategy:

threat from newcomers to the market;

market power of buyers (depends on the level of awareness of buyers, the possibility of switching to another seller);

bargaining power of suppliers. The influence of suppliers is determined by their concentration in a given region;

the threat of substitute products. Competition depends on the extent to which products of the same type can be replaced by alternative products. For example, the increasing popularity of sugar substitutes has had a negative impact on the level of demand for sugar.

intensity of competition in the industry.

3. The foreign investment strategy involves the creation of own production enterprises abroad.

4. The export activity strategy involves the development of measures to assess the possible benefits of increasing exports. This strategy is used by large firms that produce complex equipment, as well as small and medium-sized firms that produce the latest small-sized products (watches, photographic equipment, household electrical goods).

The strategy for managing a set of industries involves determining the relative level of capital investment, based on calculations of the volume of production, individual types of products and the activities of the company as a whole. This strategy determines the direction of investment and redistribution of capital.

Functional strategies determine the directions for achieving goals in the functional areas of the organization: finance, marketing, production, R&D, personnel, etc. Their purpose is to ensure that the tasks set at the corporate and business levels are solved with the greatest possible efficiency. The main difference from corporate and business strategies is the in-house focus. Functional strategies include:

Table 1 - Types of innovation strategies

After management has compared external threats and opportunities with internal forces and weaknesses, it can determine the strategy it will follow. At this stage, we answer the question: "What business are we doing?" and now ready to deal with the questions: "Where are we going?" and "How do we get from where we are now to where we want to be?"

The organization faces four main strategic alternatives. Although there are many variations of each of these alternatives, we will focus on choosing a general strategy. Consider these alternatives, the reasons why companies adopt one strategy over another, and the point at which a particular strategy is likely to succeed. These four alternatives include limited growth, downsizing, and combinations of these strategies.

LIMITED GROWTH. The strategic alternative favored by most organizations is limited growth. A limited growth strategy is characterized by setting goals from what has been achieved, adjusted for inflation. The limited growth strategy is applied in mature industries with static technology, when the organization is generally satisfied with its position. Organizations choose this alternative because it is the easiest, most convenient, and least risky course of action. Management generally doesn't like change. If a firm has been profitable in the past by pursuing a limited growth strategy, then it is likely that it will continue to do so in the future.

GROWTH. The growth strategy is implemented by annually significantly increasing the level of short-term and long-term goals above the level of the previous year's indicators. The growth strategy is the second most frequently chosen alternative. It is used in dynamically developing industries with rapidly changing technologies. It can be followed by executives seeking to diversify their firms in order to exit stagnant markets. In an unsustainable industry, lack of growth can mean bankruptcy. In a static industry, lack of growth or failure to diversify can lead to market atrophy and no profits. Historically, our society has viewed growth as a beneficial phenomenon. For many leaders, growth means power, and power is good. Many shareholders view growth, especially short-term growth, as an immediate wealth gain. Unfortunately, many firms prefer short-term growth in exchange for long-term ruin.

Growth can be internal or external. Internal growth can occur by expanding the range of products. External growth can be in related industries in the form of vertical or horizontal growth (a manufacturer acquires a wholesale supplier or one soft drink firm acquires another). Growth can lead to conglomerates, that is, the combination of firms in unrelated industries. Today, the most obvious and recognized growth firm is the corporate merger.

REDUCTION AND REORIENTATION. In a sluggish economy, many firms find it necessary to cut some of their operations in an attempt to increase profits. In 1986, the STOP AND SHOP grocery store chain recorded a $2 million loss from downsizing, but within a year the company had posted an 118% profit for the second quarter of 1987. Management's goal was to reduce operations to a more manageable and, it was hoped, profitable level. Downsizing strategies are most often used when a company's performance continues to deteriorate, during an economic downturn, or simply to save the organization.

COMBINATION. Strategies for combining all alternatives are likely to be pursued by large firms active in several industries. A combination strategy is a combination of any of the three strategies mentioned - limited growth, growth and contraction. At the same time that REVLON GROUP was downsizing its activities, agreeing to sell most eye care companies, it aggressively tried to acquire the razor blade manufacturer Gillette, offering $5.41 billion (growth strategy).

I. Aktashkina

strategic management,

At its core, a strategy is a set of decision-making rules that guide an organization in its activities.

Strategy Decision making about what the organization's business should be, where it will be based, and how the company will achieve its goals.

Organization strategy- this is a master plan of action that determines the priorities of strategic tasks, resources and a sequence of steps to achieve goals.

All the variety of strategies that are commercial and non-profit organizations demonstrate in real life, are various modifications of several basic strategies. Each of these strategies is effective in a specific situation, determined by the factors of the internal external environment, so it is important to consider the reasons for choosing a particular option.

The organization faces four main strategic alternatives:

• 1. Limited growth. This alternative is followed by most organizations, it is characterized by setting goals from what has been achieved, adjusted for inflation. This is the easiest, most convenient and least risky course of action. Applied in mature stable industries with stable profits in the past. With a strategy of limited growth, development goals are set “from what has been achieved” and are adjusted when the situation changes. If management is generally satisfied with the position of the firm, then it is obvious that in the future it will follow the same strategy, since this is the easiest and least risky course of action.
• 2. Growth. This strategy is most often used in dynamic industries with rapidly changing technology. The strategic alternative to growth is carried out by annually significantly increasing the level of short-term and long-term goals above the level of the previous year's indicators. This strategy is the second most frequently chosen alternative. It is used in dynamically developing industries with rapidly changing technologies. It can be used by FIMs looking to diversify to exit a stagnant market. In an unsustainable industry, lack of growth can mean bankruptcy. In a static industry, lack of growth or failure to diversify can lead to market atrophy and no profits. However, many firms prefer short-term growth in exchange for long-term ruin.

Growth can be internal or external. Internal growth can occur by expanding the range of products. External growth can be in related industries in the form of vertical or horizontal growth through the acquisition of another firm, their consolidation or merger.

• 3. Reduction is a strategy of last resort. Options for implementing the strategic alternative to reduction: liquidation, cutting off the excess, reduction, reorientation. This strategy is chosen by the organization least often. It is characterized by setting goals below the level achieved in the past. The reduction strategy is resorted to when the performance of the organization acquires a steady downward trend, and no measures can change this situation.
• 4. Combination- the strategy of combining all alternatives, which is followed by large firms active in several industries. This strategy is a combination of the considered alternatives - limited growth, growth and reduction. This strategy is usually followed by large organizations that are active in several industries. For example, a firm may sell or liquidate one of its operations and acquire one or more others in return.

Each basic strategy has a set alternatives. The growth strategy can be carried out by acquiring another company - external growth, or by significantly expanding the range of products - internal growth. The reduction strategy has the following alternatives: liquidation is the most radical option when the organization ceases to exist; cutting off the excess, in which the company eliminates or redesigns its inefficient divisions.

Core strategies serve as options for the organization's overall strategy. It is filled with specific content in the process of fine-tuning, which includes:

checking the strategy for compliance with the goals of the organization;

comparison with the corresponding stages life cycle product, demand or technology;

the formulation of strategic tasks that will have to be addressed in the process of achieving the goals;

setting deadlines for solving problems (by stages);

determination of resource needs.

Marketing strategies (F. Kotler). According to F. Kotler, a company in the competition can play one of 4 roles. The marketing strategy is determined by the position of the company in the market, whether it is a leader, challenger, follower or occupies a certain niche:

• 1. Leader(a market share of about 40%) feels confident. The market leader owns the largest market share of a particular product. In order to consolidate its dominant position, the leader must strive to expand the market as a whole, attracting new consumers, finding new ways to consume and use products. To protect its market share, the leader uses the strategies of positional, flank and mobile defense, preemptive strikes and repulse of an attack, and forced reduction. Most market leaders seek to deprive competitors of the very possibility of going on the offensive.
• 2. Leadership contender(market share about 30%). Such a company aggressively attacks the leader and other competitors. As part of special strategies, the applicant can use the following attack options: “frontal attack”, “encirclement”, “bypass”, “gorilla attack”
• 3. Follower(share 20%) - a company that strives to maintain its market share and get around all the shallows. However, even followers must adhere to strategies aimed at maintaining and increasing market share. The follower can play the role of a copycat or doppelgänger
• 4. Entrenched in a market niche- (share 10%) serves a small segment of the market, which is not the concern of large firms. Traditionally, this role was played by small businesses, today large companies are also using the niche strategy. The key to niches is specialization. Niche targeting companies choose one or more areas of specialization: by end user, by vertical, by customer size, by specific customer, by geography, by product, by customer experience, by specific quality/price ratio, by service, distribution channels. Several niches are preferable to one.

Basic competitive strategies (M. Porter). According to Fatkhutdinov R.A. Author of the book "Strategic Management" Porter identifies five main competitive strategies:

• 1. Cost leadership strategy, providing for a reduction in the total costs of production of goods or services.
• 2. Broad differentiation strategy, aimed at giving products specific features that distinguish them from the products of competing firms, which helps to attract a large number of buyers
• 3. Best Cost Strategy, enabling customers to get more value for their money through a combination of low costs and wide product differentiation. The task is to provide optimal costs and prices relative to manufacturers of products with similar features and quality.
• 4. Focused Strategy, or low-cost niche market strategy, focused on a narrow segment of buyers, where the firm is ahead of its competitors due to lower production costs
• 5. Focused Strategy, or a market niche strategy based on product differentiation, aims to provide representatives of the selected segment with goods or services that best suit their tastes and requirements.

1. Cost leadership. When implementing this strategy, the task is to achieve leadership in terms of costs in their industry through a set of functional measures aimed at solving this particular problem. As a strategy, it involves tight control over costs and overheads, minimizing spending in areas such as research and development, advertising, and so on.

Low costs give an organization a good chance in its industry even if competition is fierce. A cost leadership strategy often creates a solid basis for competition in an industry where fierce competition in other forms is already established.

• 2. Differentiation. This strategy involves differentiating an organization's product or service from those offered by competitors in the industry. As Porter shows, the differentiation approach can take various forms including image, brand, technology, distinctive features, special customer service, etc. Differentiation requires serious research and development, as well as sustainable marketing. In addition, buyers must give their liking to the product as something unique. The potential risk of this strategy is changes in the market or the launch of analogues initiated by competitors, which will destroy the competitive advantage gained by the company.
• 3. Focusing. The objective of this strategy is to focus on a specific group of consumers, market segment or geographically isolated market. The idea is to serve a specific target well, not the industry as a whole. It is assumed that the organization will thus be able to serve a narrow target group better than its competitors. This position provides protection against all competitive forces. Focusing can also be combined with cost leadership or product/service customization.

Analyzing the competitive environment and determining the organization's position in it involves determining the complexity and dynamism of the competitive environment. The universal methods of such analysis are the five forces model of M. Porter and the cost analysis of competitors.

The five forces model involves conducting a structural analysis based on determining the intensity of competition and studying the threat of potential competitors entering the market, the power of buyers, the power of suppliers, the threat from substitutes for a product or service.

Competitor cost analysis boils down to identifying the strategic factors driving cost, cost analysis itself, and competitor cost modeling.

Types of strategies for the behavior of firms according to A.A. Thompson and A.J. Strickland. Famous authors of the book "Strategic Management" A.A. Thompson and A.J. Strickland describes the strategies of firms in sufficient detail and reasonably. They distinguish the following strategies: offensive, defensive and vertical integration strategies.

• 1. Offensive strategies for saving competitive advantage. Competitive advantage is usually achieved through the use of a creative offensive strategy that is not easy for competitors to counter. There are six main types of offensive strategy:
  • actions to counteract strengths competitor or surpass them;
  • actions aimed at exploiting the weaknesses of a competitor;
  • simultaneous offensive on several fronts;
  • capture of unoccupied spaces;
  • guerrilla warfare;
  • preemptive strikes.
• 2. Defensive strategies to protect competitive advantage aim to maintain one's market position, reduce the risk of being attacked, outlast a competitor's attack with less loss, and pressure challengers to redirect them to fight other competitors.

A good defensive strategy involves the ability to quickly adapt to a changing situation in the industry and, if possible, pre-emptively block or prevent competitors from attacking blocking actions.

3. Strategy of vertical integration. The essence of this strategy is that firms can expand their activities towards suppliers (back) or towards the consumer (forward). A firm that builds a new facility to manufacture input components previously purchased from suppliers is undoubtedly still in the same industry as before. Similarly, if a manufacturer chooses to integrate forward by opening its retail store network to sell products directly to the end consumer, it remains in the business of producing those products, even as it expands its scope in the industry's value chain.

Vertical integration strategies can aim for full industry integration or partial integration (creating positions at the most important steps in the industry's value chain). A company can integrate vertically by starting its own activities in other parts of the industry chain or by acquiring firms already operating in this area so that they are closer to the company.