The Meaning of Competitive Strategy - Competitive strategy is about how a company competes in a specific business (note: the whole strategy for varied firms is defined as corporate strategy). Competitive strategy is related to how a company is able to achieve a competitive advantage by competing in a distinctive way.
Porter (1980) proposed a few alternative competitive strategies that emerged from the basic characteristics of a consumer. Essentially, consumers will decide to buy / consume or not will be based on two considerations, namely the price and quality. To that end, the company's strategy needs to be directed on two fundamental things earlier.
The purpose of competitive strategy is to lock the movement of competitors in a way to take actions that better fit the expectations and desires of consumers. By implementing competitive strategy, a company can have a specific product with its value and the mainstay which can be offered to consumers to satisfy the consumers.
Competitive strategy is a factor that is very considered for entrepreneurs to start up a company. An excellent businessman will surely plan some competitive strategies first before producing a product. After planning a competitive strategy, then the company will market the product to consumers. By having a good competitive strategy, the opportunity to achieve the sales target would be even greater.
One of the most important implementation of competitive strategy is Business Process Reengineering (BPR), which it is a process of doing the fundamental rethinking and radical re-design of business processes to produce extraordinary changes in cost, speed, quality and service.
If a company wants to make planning for a competitive strategy in producing and marketing a product, the company needs to do researches on the specified product on the market. The important things that should be examined in the product are quality, price, outstanding brands in market, market condition, needs or wants of consumers to the product, and purchasing power of consumers. From the results of these researches, it will be decided how to compete other companies that produce similar kind of product.
Source: Taken from various sources
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