Factors That Affect A Firm’s Competitive Strategy

We live in a competitive world because everybody is trying to make it. The business industry is one competitive industry. Companies come up with strategies that will enable them to survive and make them dominate in the marketplace. The market, however, keeps evolving and the businessmen have to be aware of the changing dynamics so that they can survive in the industry. Some factors affect the competitive strategies of a firm. They include;

Customers

Businessmen may come up with strategies that focus on the customers’ needs. This is a good strategy because for abusiness to thrive, the customers have to be satisfied. The customers’ value, however, keeps changing. Therefore, continuous surveys should be conducted so as to make sure that the customers are still satisfied. Moreover, the surveys will help to know if new ones are replacing the existing customers and what their preferences are. New strategies may, therefore, need to be implemented so as to respond to the new requirements of the customers if need be.

Suppliers

Some strategies may have been based on suppliers. A certain supplier could have unique products or services, or their products could be cheaper. If anything happens and they have to be out of the market or perhaps they partner with competitors, different strategies have to be formulated. For example, if the supplier had the lowest prices and the competitive advantage was prices of the goods, the prices have to go up because that is the only way the business will survive. Getting products at a high price and selling them at the same low price will lead to losses.

Competitors

Competitors play a big role when it comes to coming up with competitive strategies. The actions of the competitors should be carefully examined. New entrants may also be doing well due to their carefully implemented strategies. They should also be monitored. It is important to understand that the competitors will be observing other similar businesses around them. The best way to come up with a strategy is to predetermine how they will react to particular actions and then come up with strategies based on their actions. That will be being ahead of them.

Products

Products become obsolete because they are changed by technology or replaced by new ones that are better. Strategies that will keep products in the market regardless of the changes should always be implemented. This is the only way the business will thrive.