COMPETITION
is the core of business success.
Finding effective competitive
strategy while in search for
a favorable long-term competitive
position for your industry is
aimed at establishing and maintaining
a profitable position against
the forces determining competition.
The intensity of competition
is a natural business aspect,
and failure to position your
business at a sufficient level
of competitiveness is neither
a matter of coincidence nor
bad luck. It is rooted in you
industry's underlying economic
structure and goes beyond the
behavior of current competitors.
It should be the subject of
a thorough analysis if you are
willing to improve and maintain
required business level.
The two determinants of profitability
are industry attractiveness
and competitive strength. They
are important for the business
because a successful competitive
strategy has to be based on
a precise understanding of the
competition rules and a thorough
analysis of strengths and weaknesses
of your own industry. It is
also important to determine
whether your company's profitability
level is above or below the
acceptable financial industry
average.
The object to analyze may well
be a whole business, but much
more insight and is gained by
looking at the strategic business
units (SBU) which in fact should
be the basis and the major determinants
of competition ability. An SBU
consists of a well-defined set
of offerings aimed at a market
segment that is actively served
by your industry and which is
currently the reasonable source
of competition.
FIT, which
is short for "Financial
Improvement Toolkit", is
the PC software product developed
for those managers who want
to establish their own Strategic
Management Assistant and Adviser. |
