Question

Explain the importance of management in overcoming competition.

Answer 1

Answer:

Consumer and business markets have distinct characteristics by which they function. Earlier, importance was given mainly in understanding customer ...

Answer 2

Answer:

1. Companies need to understand competitor’s motive and goal to be in the market. Competitor’s operating pattern also need careful study like competitor’s action in the face of challenge to their position in the market.
2. To deal with competition companies need to design an intelligence system. Companies need to identify parameters which will help in analyzing the competition. It is then followed by gathering information for which source and methodology have to be finalized. Once the information is collected it has to be analyzed and sent to appropriate decision makers to act upon. As there are cost involved in design and maintaining such system, some companies give out contracts to companies which specialize in intelligence gathering activity.
3. The information from system is helpful in designing marketing strategies. Marketing strategy evolve depending on company position in the market. Market leaders, market challenger, market follower and niche players are four types of position strategy companies follow.
4. Dealing with competition is not an easy task and it requires dedicated resources of manpower, system and budget. Any lapse from company would result in decrease of market share and profit.