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    David Aaker

    STRATEGIC

    MARKET

    CONTROL

    Seventh Edition

    MoscowSt. Petersburg . LowerNovgorodVoronezh

    Rostov-on-Don . Yekaterinburg . Samara- Novosibirsk

    Kyiv . KharkovMinsk

    BBK 65.290-21 UDC 658.1

    AakerD.

    A12 strategic market management. 7th ed. / Per. from English. ed. S. G. Bozhuk. - St. Petersburg: Peter, 2007. - 496 p.: ill. — (Series "Management Theory").

    ISBN 978-5-469-01301-3 5-469-01301-4

    "Strategic Market Management" is one of the most significant works of the recognized classic of management, David Aaker. The new, 7th edition has retained the best traditions of this illustrious book: it is distinguished by simplicity of presentation and coverage of all essential aspects of creating, evaluating and implementing business strategies. Along with this, the book reflects the latest trends in the field of strategic management, added fresh examples and case studies, and shows how to apply strategic developments in practice. After reading this book, you will be able to properly understand and control the dynamic environment, offer forward-thinking and creative approaches that are adequate to the conditions and changes that the company faces, and create strategies based on sustainable competitive advantages.

    The publication will be useful to managers developing strategies for the development of an enterprise, students of MBA programs and other training courses on strategic marketing, strategic management and strategic market planning.

    BBK 65.290-21

    Publishing rights obtained under agreement with John Wiley & Sons Ltd.

    All rights reserved. No part of this book may be reproduced in any form without the written permission of the copyright holders.

    John Wiley & Sons
    ISBN 0-471-48426-1 (English) Translation into Russian by Peter Press LLC, 2007

    ISBN 978-5-469-01301-3 Russian edition, design

    Peter Press LLC, 2007

    Foreword 10

    Five supports 10

    Seventh Edition I

    Book 12 Goals

    Who is this book intended for?

    Information for teachers 15

    Thanks 15

    PARTI. INTRODUCTION AND OVERVIEW

    Chapter 1. Business Strategy: Concept and Trends 18

    What is a business strategy? 20

    Strategic directions 26

    Strategic Market Management: historical analysis 27

    Strategic Market Management: Characteristics and Trends 32

    The Need for Strategic Market Management 36

    Main ideas 37

    Topics for discussion 38

    Notes 39

    Chapter 2. Strategic Market Management: An Overview of the Topic 40

    External analysis 41

    Internal analysis 49

    Business Vision 53

    Identification and choice of strategy 56

    Choosing strategic options 61

    Process 63

    Main ideas 63

    Topics for discussion 64

    Notes 64

    PARTII. STRATEGIC ANALYSIS

    Chapter 3. External Analysis and Buyer Analysis 66

    External analysis 66

    The subject of customer analysis 72

    Segmentation 73

    Buyer motives 79

    Unmet needs 86

    Main ideas 90

    Topics for discussion 91

    Notes 91

    Chapter 4 Competitor Analysis 93

    Determination of competitors from the perspective of buyers 95

    Definition of competitors as strategic groups 98

    Potential competitors 102

    Competitor Analysis: Studying Rivals 103

    Strong and weak sides competitor 108

    Collecting information about competitors 117

    Main ideas 119

    Topics for discussion 119

    Notes 120

    Chapter 5. Market and Submarket Analysis 121

    Areas of market analysis 122

    Actual and potential market volumes 127

    Growth rates of the market and submarket 128

    Analysis of market and sub-market profitability 132

    Cost structure 135

    Distribution systems 137

    Market trends 138

    Key success factors as the basis of competition 139

    Risks in high growth markets 140

    Main ideas 145

    Topics for discussion 146

    Notes 147

    Chapter 6. Environmental Analysis and Strategic Uncertainty 148

    Components of environmental analysis 150

    The problem of strategic uncertainties 160

    Impact analysis: assessing the impacts of strategic

    Uncertainties 161

    Scenario analysis 164

    Main ideas 168

    Topics for discussion 168

    Notes 169

    Chapter 7. Internal Analysis 170

    Financial condition: sales volume and profitability 171

    Performance appraisal: non-profit single 176

    Determinants of strategic options 182

    From analysis to strategy 185

    Portfolio analysis of business 187

    Main ideas 191

    Topics for discussion 192

    Notes 192

    Appendix. Forecasting cash flows: sources

    And consumers of financial resources 193

    Workshop (for Part II) 197

    A new dynamic industry: the production of energy bars 197

    Topics for discussion 200

    Rivalry with an industry giant: competing with Wal- March 202

    Topics for discussion 206

    PARTIII. ALTERNATIVE BUSINESS STRATEGIES

    Chapter 8: Creating Sustainable Competitive Advantage 210

    Sustainable competitive advantages 211

    The role of synergy 219

    Strategic vision and strategic opportunism 223

    Dynamic Vision 233

    Main ideas 238

    Topics for discussion 238

    Notes 239

    Chapter 9. Strategic Directions 240

    What effective strategy business 241

    Strategic directions 244

    Quality as a strategic option 252

    Main ideas 260

    Topics for discussion 261

    Notes 261

    Chapter 10 Strategic Directions: Creating Value,
    focus and innovation 263

    Value as a strategic option 263

    Focus Strategies 274

    Innovation 279

    Main ideas 286

    Topics for discussion 286

    Notes 287

    Chapter 11 Global Strategies 288

    Motives for global strategies 290

    Which country to choose? 294

    Standardization and customization 297

    Global Brand Management 302

    Strategic alliances 306

    Main ideas 313

    Topics for discussion 314

    Strategic Market Management

    The interpenetration and mutual enrichment of the two developing theoretical directions is also reflected in the refinement of the stages of strategic marketing planning. Scheme 2 shows how one or another strategic direction is revealed through a set of functional strategies, specified in a strategic set of marketing tools: product (new product) strategy, pricing strategy, promotion and distribution strategy. The conceptual core of marketing (coordination of proportions and production of consumption) is focused on the second strategy of stage 8. In the third stage, specific options are proposed to achieve balance through differentiation of one's own product in relation to competing organizations.

    Evolutionary changes in the priorities of strategic management, at various stages in planning approaches, shift the researcher's interest from the procedure of building a strategy to more detailed analysis meaningful "stuffing" of a competitive business strategy. D. Aaker, developing the idea of ​​I. Ansoff, offers 6 elements of a competing business strategy:

    1) the choice of product-market. The scope of the business is defined goods, which the company plans to offer and the production of which it refuses; the markets it seeks or refuses to serve; competitors with whom it will compete or avoid competition; level of vertical integration.

    2) determination of the level of investment, where the following alternatives are highlighted:

    Ø Growth investments

    Ø investment to maintain existing positions

    Ø Doing business with minimal investment

    Ø increase in asset through liquidation or sale of business

    3) strategies of functional areas necessary for competition:

    Ø product strategy

    Ø communication strategy

    Ø pricing strategy

    Ø distribution structure

    Ø production strategy

    Ø strategy information technologies

    Ø segmentation strategy

    Ø global strategy

    4) Strategic assets or competencies that represent the foundations for building sustainable competitive advantage (SCA). Under strategic assets, it is customary to understand a brand, brand, customer base, partnerships. With a corporate strategy or an organization operating in several business areas, additional components appear:

    5) distribution of resources between business units. Buildings, equipment, and financial resources generated within the organization are subject to distribution.

    6) creating a synergy effect: benefiting from complementarity and mutual support of business units

    The six elements of a competitive strategy can be summarized as three basic components:

    1) a decision on commodity-market investments that determine the scope of business, the intensity of investments and the distribution of resources.

    2) functional area strategies

    3) the basis of sustainable competitive advantages, strategic assets: key competencies, synergy.

    AT modern conditions a special role in the formation of a competitive strategy belongs precisely to the creation of conditions for the generation of strategic assets and competencies as the basis for sustainable developing competitive advantages. Development as expansion and diversification is replaced by an understanding of development as the creation of conditions for the generation of strategic assets.

    Strategic market management - concept and types. Classification and features of the category "Strategic market management" 2017, 2018.

    Strategic market management. Aaker D.

    St. Petersburg: 2007. - 496 p. (Series "Management Theory").

    "Strategic Market Management" is one of the most significant works of the recognized classic of management, David Aaker. The new 7th edition continues the best traditions of this acclaimed book, with simplicity of presentation and coverage of all essential aspects of creating, evaluating and implementing business strategies. Along with this, the book reflects the latest trends in the field of strategic management, added fresh examples and case studies, and shows how to apply strategic developments in practice. After reading this book, you will be able to properly understand and control the dynamic environment, offer forward-thinking and creative approaches that are adequate to the conditions and changes that the company faces, and create strategies based on sustainable competitive advantages.

    The publication will be useful to managers developing strategies for the development of an enterprise, students of MBA programs and other training courses on strategic marketing, strategic management and strategic market planning.

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    Table of contents
    Preface 10
    Five supports 10
    Book 12 Goals
    Who is this book intended for?
    PART I INTRODUCTION AND OVERVIEW
    Chapter 1. Business strategy: concept and trends 18
    What is a business strategy? 20
    Strategic directions 26
    Strategic Market Management: Historical Analysis 27
    Strategic Market Management: Characteristics and Trends 32
    The Need for Strategic Market Management 36
    Main ideas 37
    Topics for discussion 38
    Notes 39
    Chapter 2. Strategic market management: an overview of topic 40
    External analysis 41
    Internal analysis 49
    Business Vision 53
    Identification and choice of strategy 56
    Choosing strategic options 61
    Process 63
    Main ideas 63
    Topics for discussion 64
    Notes 64
    PART II. STRATEGIC ANALYSIS
    Chapter 3 External and Buyer Analysis 66
    External analysis 66
    The subject of customer analysis 72
    Segmentation 73
    Buyer motives 79
    Unmet needs 86
    Main ideas 90
    Topics for discussion 91
    Notes 91
    Chapter 4 Competitor Analysis 93
    Determination of competitors from the perspective of buyers 95
    Definition of competitors as strategic groups 98
    Potential competitors 102
    Competitor Analysis: Studying Rivals 103
    Strengths and weaknesses of a competitor 108
    Collecting information about competitors 117
    Main ideas 119
    Topics for discussion 119
    Notes 120
    Chapter 5 Market and Submarket Analysis 121
    Areas of market analysis 122
    Actual and potential market volumes 127
    Growth rates of the market and submarket 128
    Analysis of market and sub-market profitability 132
    Cost structure 135
    Distribution systems 137
    Market trends 138
    Key success factors as the basis of competition 139
    Risks in high growth markets 140
    Main ideas 145
    Topics for discussion 146
    Notes 147
    Chapter 6 Environmental Analysis and Strategic Uncertainty 148
    Components of environmental analysis 150
    The problem of strategic uncertainties 160
    Impact Analysis: Assessing the Impacts of Strategic Uncertainties 161
    Scenario analysis 164
    Main ideas 168
    Topics for discussion 168
    Notes 169
    Chapter 7 Internal Analysis 170
    Financial condition: sales volume and profitability 171
    Performance appraisal: non-profit single 176
    Determinants of strategic options 182
    From analysis to strategy 185
    Portfolio analysis of business 187
    Main ideas 191
    Topics for discussion 192
    Notes 192
    Appendix. Cash Flow Forecasting: Sources and Consumers of Funds 193
    Workshop (for part II) 197
    A new dynamic industry: the production of energy bars 197
    Topics for discussion 200
    Rivalry with an Industry Giant: Competing with Wal-Mart 202
    Topics for discussion 206
    PART III. ALTERNATIVE BUSINESS STRATEGIES
    Chapter 8: Building sustainable competitive advantage 210
    Sustainable competitive advantages 211
    The role of synergy 219
    Strategic vision and strategic opportunism 223
    Dynamic Vision 233
    Main ideas 238
    Topics for discussion 238
    Notes 239
    Chapter 9 Strategic Directions 240
    What is an effective business strategy 241
    Strategic directions 244
    Quality as a strategic option 252
    Main ideas 260
    Topics for discussion 261
    Notes 261
    Chapter 10 Strategic Directions: Creating Value, Focusing, and Innovativeness 263
    Value as a strategic option 263
    Focus Strategies 274
    Innovation 279
    Main ideas 286
    Topics for discussion 286
    Notes 287
    Chapter 11 Global Strategies 288
    Motives for global strategies 290
    Which country to choose? 294
    Standardization and customization 297
    Global Brand Management 302
    Strategic alliances 306
    Main ideas 313
    Topics for discussion 314
    Notes 315
    Chapter 12 Strategic Positioning 316
    The role of strategic positioning 317
    Strategic position options 328
    Development and selection of a strategic position 341
    Main ideas 343
    Topics for discussion 344
    Notes 345
    Workshop (for Part III) 346
    Strategic repositioning: quality as an option 346
    Topics for discussion 348
    Development and opposition to PCD and risks in achieving success 349
    Topics for discussion 353
    PART IV. GROWTH STRATEGIES
    Chapter 13 Growth Strategies: Product Market Penetration and Expansion, Vertical Integration, and the Big Idea 356
    Growth in existing product markets 358
    Developing a New Product for an Existing Market 365
    Market expansion using existing products 371
    Vertical Integration Strategies 374
    Idea 379
    Main ideas 381
    Topics for discussion 382
    Notes 383
    Chapter 14 Diversification 384
    Related Diversification 385
    Synergistic mirages 393
    Unrelated diversification 397
    Strategies for entering a new product market 404
    Main ideas 408
    Topics for discussion 409
    Notes 410
    Chapter 15. Strategies for dealing with hostile and declining markets 412
    Creating conditions for growth in declining markets 413
    Profitable Survival 416
    "Milking" or "harvesting" 417
    Divestment or liquidation of business 421
    Choosing the Right Strategy in a Market Downturn 423
    Hostile markets 426
    Main ideas 433
    Topics for discussion 434
    Notes 434
    Workshop (for part IV) 436
    Use of assets trademark 436
    Topics for discussion 439
    Build Brand Assets to Support Growth Strategy 439
    Topics for discussion 444
    PART V. IMPLEMENTATION
    Chapter 16. Organizational Issues 446
    Idea Concept Diagram 447
    Structure 448
    Systems 452
    People 455
    Culture 457
    Achieving strategic congruence 461
    Innovative organization 467
    Summary of Strategic Market Management 471
    Main ideas 472
    Topics for discussion 473
    Notes 474
    Workshop (for part V) 475
    Planning a risky development direction without internal support 475
    Topics for discussion 478
    Appendix. Planning forms 480
    Pet food 480

    The concept and essence of strategic market management.

    Strategic management- this is the process of making and implementing strategic decisions, the central link of which is a strategic choice based on a comparison of the enterprise's own resource potential with opportunities and threats external environment in which it operates

    Strategic market management is designed to help company leaders make strategic decisions (and do it quickly) as well as formulate a strategic vision.

    A strategic decision involves creating, changing or using a strategy. Unlike tactical decisions, strategic decisions are usually very costly, both in terms of resources and the time required to change or cancel them.

    One of the most important roles of the strategic market management system is to accelerate the adoption of strategic decisions.

    The critical step here is usually recognizing the need for a strategic response. Many strategic miscalculations were made not because of wrong decisions, but because the process of finding a strategic decision was absent as such.

    In addition, the role of strategic market management is not limited to the choice of one of several solutions, but involves their preliminary identification (which is the main part of the analysis).

    2. Strategic thinking and its role in modern management.

    Strategic thinking is a special type of systems thinking that combines rational and creative components, objective and subjective aspects, is based on certain principles, integrates various concepts and methods in a complex process of strategic activity.

    There are two conflicting positions about the nature of strategic thinking.

    The first is based on the fact that strategic thinking is one of the advanced forms of analytical reasoning, which requires consistent and accurate use of logic and formal methods.

    The second position is based on the fact that the essence of strategic thinking is the ability to break traditional ideas, which requires the use of creative methods and an informal approach (the creative aspect of strategic thinking). Proponents of this approach are convinced that a business strategy without a creative approach is not a strategy, but a plan, a program of action formed on the basis of an appropriate analysis.

    In fact, what is needed is a compromise - a constructive union of both aspects of thinking on a situational basis.

    Logic and formalized approaches are necessary to identify a set of elements of the system of interrelations of the problem being solved, to ensure a systematic transition from goals to solution options that are justified taking into account the selected criteria.

    Creativity and freedom of thought should ensure innovation and a breakthrough to new opportunities, taking into account the conflicting positions of stakeholders, the integration of values ​​and interests, the synthesis of all aspects of the problem and foreseeing the consequences of its solution in the future.

    What should prevail in strategic thinking - rational or creative, depends on the goals of the organization, its position in the market, and the competitive environment. But without a creative approach in business today it is almost impossible to succeed. Therefore, the basis of strategic thinking in business is creativity and creative thinking, especially when it comes to start-ups or small businesses seeking to develop.

    Classification (types) of strategies in modern management

    The most significant and frequently used classification features of the systematization of strategies:

     the basic concept of achieving competitive advantages (strategy cost minimization, strategy differentiation, focusing strategy, strategy innovation, rapid response strategy, synergy strategy);

     decision-making level (corporate, business and functional strategies);

     stage of the life cycle of the industry ( firm strategies growing, mature and declining industries);

     the main characteristics of the product and the scope of its distribution (product marketing strategies, globalism strategy);

     relative strength of industry position firms(industry leader and followers strategies, related and unrelated strategies) diversification);

     the degree of aggressiveness of the company's behavior in competition (offensive and defensive strategies competition).

    3. Most often, strategies are classified into the following aggregated blocks:

     basic strategies;

     competitive strategies;

     sectoral strategies;

     portfolio strategies;

     functional strategies.

    4. The basic strategies are those that describe the most common options development of the company: growth strategy, reduction strategy, combined strategy.

    5. Competitive strategies include: strategies for achieving competitive advantages; strategies of behavior in a competitive environment. Competitive advantages are understood as unique tangible or intangible assets firms or special competence in areas of activity important for this business. Competitive behavior, in turn, reflects behavior in one of the clearly defined positions of the competitive field.

    6. When considering the industry, it is necessary to determine such indicators as its type (administrative or economic), stage of the life cycle, scale, average costs, key success factors, etc. The actual value of certain industry indicators predetermine one or another industry strategic line.

    7. Based on the model of the life cycle of the industry (identification of the stage of origin, growth, maturity and decline of the industry), all industries can be divided into three groups: developing, mature and industries in decline. Firms in these industries have similar strategies despite the fact that they may produce different products.

    8. Portfolio (corporate) strategy - this is a strategy that describes the general direction of development of a company with different types of business and is aimed at ensuring a balance of a portfolio of goods and services. Portfolio strategies can be divided into active and passive. Passive strategies require minimal information about the future. Such strategies are based on diversification, which ensures the maximum compliance of profitability with the selected market index. Active strategies use available information to improve investment performance compared to simple diversification.

    9. Functional strategies  strategies that are developed by the functional departments and services of the enterprise. It's a strategy marketing, financial, production strategy, etc. The purpose of the functional strategy is the distribution of resources of the department (service), the search for effective behavior of the functional unit within the framework of the overall strategy.

    The process of strategic management, its tasks and main

    Stages.

    The process of strategic management is a sequence of decision-making, their implementation, control, correction. This process is cyclical, and the more changeable and uncertain the environment, the shorter the decision-making cycle.

    Strategic management

    To date, there is no unambiguous, sufficiently clear definition of the concept of "strategic management". Here are the most common definitions.

    Strategic management- is the process of determining the interaction of the organization with its environment, expressed through the use of selected goals and the achievement of the desired result by allocating the resources of the organization in accordance with an effective plan of action.

    Strategic management is the process by which managers set the long-term direction of the organization, its specific goals, develop strategies to achieve them in the light of all possible internal and external circumstances, and adopt the chosen plan of action for execution.

    Strategic management- this is the management of an organization that relies on human potential as the basis of the organization, orients production activities to the needs of consumers, responds flexibly and makes timely changes in the organization that meet the challenge from the environment and allow achieving competitive advantages, which together makes it possible for the organization to survive in long term while achieving their goals.

    determining the purpose and main goals of the company's business;

    analysis of the external environment of the company;

    analysis of its internal situation;

    selection and development of the company's strategy;

    portfolio analysis of a diversified firm, designing its organizational structure;

    choice of degree of integration and management systems;

    management of the "strategy - structure - control" complex;

    definition of standards of conduct and policies of the company in certain areas its activities;

    security feedback results and strategy of the company;

    improvement of strategy, structure, management.

    Forecasting - anticipatory reflection of the future; view cognitive activity, aimed at determining the trends in the dynamics of a particular object or event based on an analysis of its state in the past and present.

    Forecasting methods - methods that provide scientifically based forecasts of the future:

    - expert assessments;

    - extrapolation;

    - modeling;

    - the use of analogies.

    Expert assessment- the procedure for obtaining an assessment of the problem based on the group opinion of specialists (experts). The joint opinion is more accurate than the individual opinion of each of the specialists.

    Strategy I

    Using existing products to achieve a higher market share (the policy of persuading existing buyers to purchase more items(advertising), or poaching customers from competitors, attracting new ones).

    Strategy II

    Finding new markets to offer existing products. There is a policy of searching for a new market niche, or new distribution channels, new geographical markets.

    Strategy III

    Development of new types of goods through improvement; or product offerings with differing technical specifications for different consumer groups.

    Strategy IV

    Search for a new attractive market. There are concentric (use of old experience and technology), horizontal (use of the old marketing space); conglamerative diversification (appeal to a completely new production and marketing areas).

    The third option is the most risky for entrepreneurs who do not have experience in a new field of activity.

    Product diversification is the offer of products with characteristics and design that are better than those of competitors (leaders in quality, achievements of scientific and technical progress).

    Concept and criticism.

    Usually, the following “economic” stages of a business are distinguished (allowing comparison with the stages of a person’s life): emergence (birth), formation (childhood), growth (youth), saturation (maturity), decline (aging), liquidation (death).

    emergence business is associated with the identification of an unsatisfied or not fully satisfied need of the economy in some kind of goods or services, with the search for and occupation of a free market niche. The main goal of the business at this stage is survival, i.e. transition to the next stage of the cycle. This requires a business leader to have such qualities as faith in success, willingness to take risks, and high efficiency. Particular importance at this stage should be given to the search and adaptation of everything new, unusual.

    Formation– consolidation of its position in the market and in the business community. The main task is to strengthen the competitiveness of business. This is a high-risk internal stage, because it is during this period that the rapid and poorly controlled growth of the organization often occurs. At this stage, many newly formed firms fail due to the inexperience and incompetence of businessmen or managers.

    Growth- the stage of continued acceleration and, as a rule, the complete capture of the part of the market acceptable for this business. At the same time, there is a transition from complex management, carried out by a small team of like-minded people, to differentiated management using simple or more sophisticated forms of planning and forecasting. Intuitive risk assessment by the management of the organization is no longer sufficient, and this forces managers to resort to analytical risk assessments, which contributes to the emergence of highly specialized workers in the organization.

    Saturation- the development of the company at this stage is usually carried out in the interests of systemic balanced growth based on stable structure and precise management. Experienced administrators come to the leadership, while extraordinary talented specialists are often replaced by more “obedient” ones. The maturity of the organization is associated with its penetration into new areas of activity, expansion and differentiation, but it is during this period that bureaucracy in management is actively emerging. There are three stages of saturation (maturity): early, intermediate and final. The period of early maturity is characterized by arbitrary growth of the firm, intermediate - by balanced growth, final - by saturation and stagnation of activity.

    recession- a stage characterized by the loss of competitive positions in the market, the aggravation of intra-company contradictions and conflicts, the deterioration of the financial condition of the company and the decrease in its value. The main task of the organization is the struggle for survival, hampered by the bureaucratization of both the internal space of the company and the external environment. New ideas at this stage rarely find adequate implementation.

    Liquidation- completion this business. In essence, this can be either a concentrated transfer of capital to another industry or area of ​​activity, or the dispersion (dispersion) of capital among numerous creditors and the liquidation of capital as a whole. Finally, the ruin of business owners is also possible.

    Decisions related to attempts to manage the life cycle of a particular business and aimed at accelerating or slowing down the transition from one stage to another are among the major strategic decisions. The connection between the strategy of the enterprise and the movement of the enterprise through the phases of its life cycle is very strong. An unfortunate decision in a field seemingly unrelated to life cycle, may have long-term consequences in the form of the onset of a new stage. Therefore, the objective laws of evolution and changes in business are of paramount importance in developing a strategy and even solving tactical management problems. This chapter is devoted to the description of such patterns and examples of their manifestation in Russian and foreign economic reality.

    Market.

    The easiest way to enter international markets is to export. Most often, companies start their export activities with indirect exports. In this case, significant investments are not needed. The company simply hires third-party sellers who provide various services and have international sales skills. Most indirect export transactions are carried out through domestic export sellers, who buy products domestically and sell them abroad, and through domestic export agencies, who do not buy goods, but simply look for foreign buyers, receiving commissions for their services. A certain part of indirect exports goes through cooperative organizations that link many producers, where export activities are managed collectively.

    When the sales volume of overseas business increases, the company is likely to move to direct export by establishing a department or related division. The exporter independently contacts foreign buyers and manages market activities. In this state of affairs, it may be necessary to hire international manufacturer representatives, foreign agents who sell related non-competitive products to a limited number of importers. The exporting company may alternatively use import houses located abroad, which buy products directly from the exporter and resell them to wholesalers, retailers and industrial consumers in their countries. Since such import houses do not have exclusive territorial rights, the exporter may use the services of several such organizations in the same country. However, this leads to a decrease in their loyalty to the exporter. Another alternative is to open a sales office in a foreign country, either staffed locally or from the exporter's home country. Since this entails a physical presence in foreign territory, such an alternative can be seen as a form of investment.

    Multinational Strategy- a strategy in which the company adapts its strategic approach to the specific market situation of each country. In this case, the overall international strategy of the company is a set of country strategies. A multinational strategy is appropriate for industries where multinational competition prevails.

    Global Strategy- a strategy that is the same for all countries, although there are slight differences in strategies in each market due to the need to adapt to its specific conditions, but the main competitive approach (for example, low costs, differentiation or focus) remains the same for all countries where the company operates . A global strategy works best in industries with global competition or in industries where the process of globalization is starting.

    43. The concept of business units, their main characteristics. Basic

    business unit strategies.

    business unit- a separate organizational and legally formalized active business structure. It is fully or partially economically isolated, responsible for specific view activities necessary for the implementation of functions in the business process. The functions of a business unit are assigned to it in a single complex. Depending on the organizational structure, it may be responsible for generating profits, for coordinating activities, or for policy development.

    After conducting a strategic analysis of the external environment and the competitive position of the business units of a diversified company, it is necessary to determine specific strategies for these business units. To do this, a number of studies need to be carried out, namely, to conduct the following types of analysis:

    1) strategic fit analysis;

    2) analysis of the resource base;

    3) prioritization of business units for resource allocation.

    After that, it will be possible to come to grips with identifying new strategic initiatives to improve the overall performance of the corporation, in other words, making strategic choices for each business unit. Let's take a closer look at these stages of developing strategies for business units of a diversified company.

    Strategic issues that arise at the corporate level are fundamentally different from those that arise at the level of an individual business unit. If the strategy of a multi-business corporation is about defining the overall direction of the business, about creating synergies between its individual types, then the strategy of a business unit usually determines how to operate in a competitive environment within its industry in order to succeed *.

    The task of creating (or transforming) a business unit strategy includes the following five stages, which are closely related to each other:

    1. Setting goals. What financial and non-financial goals will determine the future strategy of this business unit?

    2. Determining the scope of activities. What are the boundaries of its activities in terms of product and market coordinates, i.e. in what area and how widely will this business unit develop its activities?

    3. Definition of bases on the basis of which competitive advantage will be provided. The reason why target consumers will prefer the company's products over those of its competitors.

    4. Designing the value chain. How is competitive advantage created and maintained within the planned bases that provide these advantages?

    5. Value chain management. How will the business unit manage and integrate the activities in its value chain with the value chains of customers, suppliers and other business partners?

    Advertising strategy is a strategy of the optimal form, content, time and way of delivering a mass advertising message to a specific audience, which is part of the implementation of a communication marketing strategy. The purpose of the advertising strategy is to achieve a certain communication effect in the audience in contact with the advertising message and encourage it to the target behavior. The internal structure of the planning sequence of the main elements of an advertising strategy can be reflected as follows: an advertising strategy describes how the advertiser achieves its goals. The strategy reflects certain course actions to be taken: what media will be used, how often each will be used, what will be the ratio between the media used, and when they will be used.

    The strategy must meet several conditions, it must be:

    · doable, i.e. the goals set in it must be achievable based on the current situation, available resources and a certain time

    · interactive, should depend on the goals and strategies that are higher in relation to it, and determine the goals and strategies that are lower in relation to it, i.e., implement its own area of ​​​​achieving the main goal

    · cyclical, i.e., it must be constantly adjusted and supplemented upon receipt of the results of its implementation and changes (or forecasting) of the current situation (for example, market or macro situation with legislation), as well as goals and strategies of a higher level.

    54. Pricing Strategies .

    Pricing policy means general principles, which the company is going to adhere to in the field of setting prices for its products. A pricing strategy is, accordingly, a set of methods by which these principles can be put into practice.

    The strategy of premium pricing (“skimming”);

    a neutral pricing strategy;

    Breakout strategy (lower prices).

    Breakout strategy - setting prices below what most buyers think a product of a given economic value deserves, and making a big profit by increasing sales and capturing market share.

    The first condition for the successful implementation of this strategy is the presence of a large circle of buyers who are ready to immediately switch to buying goods from a new seller, as soon as he offers more low price. Moreover, such a strategy is not at all acceptable for manufacturers of goods of prestige demand. This strategy is also ineffective for cheap consumer goods - even a large relative price reduction here will be expressed in an absolutely small amount, which buyers may not pay attention to. It also brings little return in relation to goods whose properties are difficult or impossible to compare in advance, before consumption.

    The essence of this strategy can be defined as "winning high profitability at the expense of sacrificing high volumes." In order to "skim the cream" of a large profit per unit sold, the firm sets prices so high that such "cream prices" become unacceptable to most buyers. However, there is a significant limitation here: the increase in the mass of profits due to sales at a higher price must be greater than the loss in the mass of profits due to the reduction in the number of sold compared to the level possible at a lower price.

    Buyers tend to accept the firm's desire to "skim the cream" if they emphasize the differences for which the firm wants to get a premium price.

    Neutral pricing strategy - setting prices based on the price / value ratio that corresponds to most other similar products sold on the market.

    The essence of the pricing strategy is not only to refuse to use prices to increase the captured market sector, but also to prevent the price from in any way influencing the reduction of this sector. Thus, when choosing such a strategy, the role of prices as an instrument of the firm's marketing policy is reduced to a minimum. Neutral pricing often becomes a forced strategy for firms that do not see opportunities to implement a premium or price breakout strategy. Those. in a market where buyers are very sensitive to price levels, and competitors respond harshly to any attempt to change the prevailing proportions.

    In turn, Slepov V.A. identifies the following pricing strategies:

    Differentiated pricing strategies are based on the heterogeneity of buyer categories and the possibility of selling one product at several prices. Let's take a closer look at these strategies:

    1. The second market discount strategy is based on the transaction's own fixed and variable costs. Generics, secondary demographics, and some foreign markets provide an opportunity to take advantage of this strategy.

    2. The strategy of a periodic discount is based on the characteristics of the demand of different categories of buyers. Widely used for temporary and occasional price cuts, such as tickets, daytime performances, out-of-season fashion, travel fares, and similarly applies to price cuts for obsolete models.

    3. The strategy of random discount (random price reduction) is based on search costs. The main condition for applying this strategy is the heterogeneity of the price range. However, for people with high income searching for the lowest price does not justify the investment of time. For the rest - on the contrary.

    4. Strategy of price discrimination. According to this strategy, the company offers at the same time the same product at different prices to different categories of buyers.

    Competitive pricing strategies are based on taking into account the company's competitiveness in prices, and, as a rule, are implemented in the following forms:

    1. The market penetration strategy is based on the use of economies of scale. Used to introduce new products to the market and strengthen existing positions. Examples include the growth in the number of discount stores and the bundling of manufacturers to drive speculators out of the market by lowering prices.

    2. The "learning curve" strategy is based on the benefits of acquired experience and relatively low costs compared to competitors. Necessary condition for the implementation of this strategy - the influence of the experience of firms and the sensitivity of buyers to the price level.

    3. The price signaling strategy is based on the use by the firm of buyers' confidence in the price mechanism created by competing firms. It is most commonly used when targeting new or inexperienced buyers who are unaware of competing products but consider quality to be important.

    4. Geographic strategy - refers to competitive pricing for contiguous market segments.

    Assortment pricing strategies are used when a firm has a set of similar, related or interchangeable products. Here are the following types of strategies:

    1. The "set" strategy is used in conditions of uneven demand for interchangeable goods. The strategy stimulates an increase in sales, as the set is offered at a price that is lower than the price of its elements. For example, a complex lunch, a set of cosmetics.

    2. The "bundling" strategy is based on different evaluations by buyers of one or more products of the firm.

    3. The "above par" strategy is used by the firm when it is faced with uneven demand for replacement products and when it can make additional profits by increasing the scale of production.

    4. The "image" strategy is used when the buyer focuses on quality based on the prices of interchangeable goods. With this pricing, the company presents to the market an identical version of an already existing model under a different name and at a higher price. For example, the sale of environmentally friendly products (“green badges”), i.e. prices rise more than quality when implementing this strategy.

    Thus, pricing is one of the most important and most difficult questions. The choice of a general orientation in pricing, approaches to determining prices for new and already manufactured products, services rendered in order to increase sales volumes, turnover, increase production levels, maximize profits, and strengthen the company's market position is carried out as part of marketing.

    Pricing is one of important elements marketing, which directly affects sales activities, since the level and ratio of prices for certain types of products, especially for competing products, have a decisive influence on the volumes of purchases made by customers.

    Resistance to change

    Making strategic changes in an organization difficult task. The difficulties in solving this problem are primarily due to the fact that any change encounters resistance, which can sometimes be so strong that those who carry out changes cannot overcome it. Therefore, in order to make a change, you must at least do the following:

    uncover, analyze and predict what resistance a planned change may meet;

    reduce this resistance (potential and real) to the minimum possible;

    set the status quo of a new state.

    The bearers of resistance, by the way, as well as the bearers of change, are people. In principle, people are not afraid of change, they are afraid of being changed. People are afraid that changes in the organization will affect their work, their position in the organization, i.e. established status quo. Therefore, they seek to prevent changes in order not to get into a new situation that is not entirely clear to them.

    Attitudes towards change can be viewed as a combination of the states of two factors:

    acceptance or rejection of the change;

    open or covert demonstration of attitude towards change.

    Based on conversations, interviews, questionnaires and other forms of information collection, the management of the organization should try to find out what type of reaction to changes will be observed in the organization, which of the employees of the organization will take the position of supporters of changes, and who will be in one of the other three positions (Fig. 8 ). Such forecasts are of particular relevance in large organizations and in organizations that have existed without changes for a rather long period of time, since in these organizations resistance to change can be quite strong and widespread.

    Rice. 8. Matrix<Изменение - сопротивление>

    Reducing resistance to change is key to bringing about change. An analysis of the potential forces of resistance allows you to identify those individual members of the organization or those groups in the organization that will resist change, and to understand the motives for not accepting the change. In order to reduce potential resistance, it is useful to organize people into creative groups that will promote change, involve a wide range of employees in developing a change program, conduct extensive explanatory work among employees in the organization aimed at convincing them of the need carrying out changes to solve the problems facing the organization.

    The success of the change depends on how management will implement it. Managers should keep in mind that when introducing a change, they must demonstrate confidence in its correctness and necessity and try to be as consistent and consistent as possible. in the implementation of the program of change. At the same time, they should always keep in mind that as change is made, people's attitudes may change. Therefore, they should ignore the slight resistance to change and be calm about people who initially resisted change, and then this resistance was stopped.

    Strategies.

    Corporate culture- a set of behavior patterns that are acquired by the organization in the process of adaptation to the external environment and internal integration, which have shown their effectiveness and are shared by the majority of members of the organization. Components corporate culture are:

    • adopted leadership system;
    • conflict resolution styles;
    • operating system communications;
    • the position of the individual in the organization;
    • accepted symbolism: slogans, organizational taboos, rituals

    Each organization develops its own set of rules and regulations that govern the daily behavior of employees in their workplace, carrying out their activities in accordance with those values ​​that are essential to its employees. By creating organizational cultures, it is necessary to take into account the social ideals and cultural traditions of the country. In addition, for a more complete understanding and assimilation of values ​​by the employees of the organization, it is important to provide a different manifestation of corporate values ​​within the organization. The gradual acceptance of these values ​​by the members of the organization will allow achieving stability and great success in the development of the organization. Following them is encouraged by the administration with appropriate rewards or promotions. Until newcomers learn these rules of conduct, they cannot become full-fledged members of the team.

    At the heart of strategic market management (or simply strategic management, strategic management) is the assumption that in a highly turbulent external environment, cyclic planning is not applicable. To deal with "strategic surprises" in the form of unexpected threats and opportunities, strategic decisions must be made quickly, regardless of the planning cycle.

    Understanding the requirements of a highly volatile environment drives the development and active use new, more sensitive methods, systems and concepts (for example, the introduction of a real-time information system instead of periodic analysis or in addition to it). More receptive analysis of the environment, identification and

    Chapter 1. Business strategy-, concept and trends

    continuous monitoring of information-deficient areas, increasing strategic flexibility, developing an entrepreneurial spirit - all this has a positive effect on the results of the organization. An information-unsaturated area is understood as a zone of uncertainty that can affect the strategy (for example, the emergence of new interests among consumers). Strategic flexibility involves strategic decisions that provide a quick and adequate response to sudden external changes.

    Strategic market management has a warning, forward-looking character. Strategists should not obey the environment, should not take it for granted. They have to anticipate possible changes influence the changes taking place inside and outside the company. Thus, with the help of creative, active strategies, one can influence (perhaps even control) public policy, consumer needs and technological progress.

    Gary Hamel and K. Prahalad argue that company managers should have a single, clear vision of what their industry will be like in 10 years, as well as the strategic direction of operations.5

    In particular, they highlight the following requirements for modern firms:

    The company's managers have a distinctive, long-term approach.

    Top management focuses on re-engineering core strategies rather than re-engineering core processes.

    Competitors view the company as one that sets the "rules of the game" rather than dutifully following them.

    The strength of the company is more about innovation and growth than operational efficiency.

    The company is at the forefront of the industry, not in the crowd catching up.

    It should be noted that, shown in Fig. 1.2 systems did not supplant their predecessors, but developed and supplemented them. Thus, strategic market management includes all four management systems: budgeting, forecasting, typical for long-term planning, elements strategic planning and tools for making strategic decisions in real time. In strategic market management, the periodic planning process is complemented by methods through which the organization

    32 Part I. Introduction and overview

    zation saves high speed strategic response regardless of the planning cycle.

    The fact that the word "market" appeared in the term "strategic management" once again draws our attention to the fact that strategy development should be based on the market and the external environment, and not on the internal orientation of the company. He also points out that this process should be more proactive than reactive, and that it is necessary to strive not for adaptation, but for changes in the environment in our interests.

    More on the topic of Strategic Market Management:

    1. Strategic Market Management: A Historical Analysis
    2. Strategic Market Management: Characteristics and Trends
    3. Aaker D. Strategic market management. 7th ed. - 496 p: ill. - (Series "Theory of Management"), 2007
    4. 2.3. Management through the selection of strategic positions and through the ranking of strategic objectives
    5. 2.1. Marketing as a market concept, economic management and as an integrated systematic approach to the organization of market activities. Formation and development of marketing
    6. 8.4. Decision-making in strategic management Characteristics of the decision-making environment in strategic management.
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