The competition in the market lies in knowing yourself and yourself. This paper defines competitors, analyzes competitors and their responses to competition, and provides theoretical reference for the company's competition.

Strategic assumptions of competitors, competitive responses

Usually, customers and competitors who are optimistic about the company will also be optimistic. When a certain part of customers demand a certain product and service, the market comes into being. Accordingly, an industry composed of competitors who want to produce and operate similar products and services to meet this market demand has emerged. Enterprises are in specific industries.

In the commercial field, we should also conduct an in-depth analysis of the industry. As the saying goes, "Know yourself and know yourself, and you will win every battle."

First, the definition of competitors

It is important to understand the influence of the industry, but it is not enough. "Colleagues complain about their families" is just a general statement. It is difficult for any enterprise to have enough resources and capabilities, and there is no need to become an all-round enemy with enterprises in the industry. It must deal with the main competitive relationship, that is, the relationship with direct competitors. A direct competitor is a competitor who sells basically the same products or provides basically the same services to the same customers. Competitive intensity refers to the intensity of competitive means adopted by all parties in order to seek competitive advantage.

Similar to market segmentation, industries can also be subdivided into different strategic groups. Strategic groups (also known as strategic groups) is an enterprise group that follows the same strategic direction and adopts the same or similar strategy. Only enterprises from the same strategic groups are real competitors. Because they usually use the same or similar technology, produce the same or similar products, provide the same or similar services, and adopt competitive pricing methods, the competition between them is more direct and intense than that with enterprises outside strategic groups.

Second, analyze competitors.

After establishing important competitors, it is necessary to analyze each competitor as deeply and in detail as possible, reveal each competitor's long-term goals, basic assumptions, current strategies and capabilities, and judge the basic outline of its actions, especially its response to industry changes and threats from competitors.

1, the long-term goal of competitors. The analysis of competitors' long-term goals can predict whether competitors are satisfied with their current position, so as to judge how competitors will change their strategies and react to external events. The strategic goal of Japanese motorcycle enterprises in the 1970s and 1980s was obvious, that is, to fully occupy the largest and best market in the world. Therefore, like Honda, when it encounters tariff barriers, it can bypass the restrictions of American tariff barriers by directly building factories in the United States.

2. Strategic assumptions of competitors. The strategic goals established by each enterprise are based on their assumptions. These assumptions can be divided into three categories:

First, the theoretical assumptions that competitors believe in. For example, the theory pursued by many American companies is short-term profit, because only profit can support development. Japanese companies believe in market share and economies of scale. They believe that as long as they can occupy the market, expand the scale of production and sales, reduce the unit cost and naturally roll in profits, there will be a bumper harvest in autumn.

Second, competitors' assumptions about their own enterprises. Some enterprises think they are superior in function and quality, while others think they are superior in cost and price. Brand-name products enterprises may be dismissive of the penetration of low-grade products, while enterprises that win by price will attack the price reduction of other enterprises head-on.

Third, competitors' assumptions about the industry and other enterprises in the industry. In the 1960s, Harley was not only full of confidence in the motorcycle industry, but also too contemptuous of Japanese companies, thinking that they were only in the primary learning stage and posed no threat to themselves. However, the Japanese bowed their heads and said, "We are primary school students." On the one hand, I deeply feel that Americans underestimate themselves: see who laughs last. After 20 years of training, Japanese motorcycles have finally achieved positive results in the United States.

In fact, strategic assumptions, whether for competitors or for themselves, should be carefully tested, which can help managers identify prejudices and blind spots in their environment. The terrible thing is that many assumptions are not clearly realized or not realized at all, or even wrong; Some assumptions were correct in the past, but they became less correct due to changes in the business environment, but enterprises are still following the assumptions of the past.

3. The strategic approaches and methods of competitors. Strategic approaches and methods are specific and multifaceted, and should be analyzed from all aspects of the enterprise. From the perspective of marketing strategy, Honda's marketing strategy ways and methods at least include the following contents: (1) In terms of product strategy, we will cut into the American market with small cars, provide as many small car models as possible, and improve the attractiveness of products; After gaining a foothold in the small car market, it will penetrate into the large car market; In terms of price, through scale advantage and management improvement, the product cost is reduced and the product is sold at a low price; In the promotion, establish a new image of motorcycle to distinguish it from Harley's rough style. Facts have proved that these strategic measures are effective and successful. Relatively speaking, Harley has no clear strategic approach and method. Although Harley's parent company AMF also injected capital into Harley to increase production, it also produced small cars. The result ended in failure because of uncoordinated factors.

4, the strategic ability of competitors. Goals and methods should be based on ability. After analyzing and studying competitors' goals and approaches, it is necessary to further study whether competitors have the ability to achieve their goals by other means. This involves how enterprises plan their own strategies to cope with competition. If this enterprise has a comprehensive competitive advantage compared with its competitors, then there is no need to worry about when and where the conflict will occur. If competitors have comprehensive competitive advantages, then there are only two ways: either not offending competitors, being willing to follow them, or avoiding them. If you don't have comprehensive competitive advantages, but you have distinctive advantages in some aspects and fields, you can do your article well in the fields or fields where you have distinctive advantages, but you should avoid touching others' advantages with your own disadvantages.

Third, competitors' reaction to competition.

From the above analysis, we can see that strategic management is a "game" process. One is to choose our opponent, the other is to judge the opponent's chess path and decide our strategy according to "how the opponent will react to our chess".

To sum up, competitors respond to competition in three ways: no counterattack, defensive counterattack and offensive counterattack. It depends on whether the competitor is satisfied with his current position, whether he is in a strategic shift, and the degree of stimulation from his competitors. Specifically, it can be divided into six counterattack modes.

1, those who sit and watch the incident, don't take countermeasures immediately. The reason may be that they are convinced of the loyalty of their customers, or they don't have the necessary resources to fight back, or they don't reach the level that they should fight back. Therefore, we should be extra cautious about such competitors.

2. An all-round defender will fully respond to external threats and challenges to ensure that his position is not violated. But comprehensive defense will also lengthen the front line, and it is still possible to deal with a competitor. If you have to deal with several competitors' attacks at the same time, you will be overwhelmed.

3. Defensive position counterattack. Because of its concentrated counterattack range and desperate belief in the last fight, the reaction intensity is quite high. This kind of counterattack is more effective. Because it is a counterattack concentrated in a small range, it has strong endurance.

4. Fight back violently. This type of enterprise will make a quick and powerful counterattack against the attacks launched in all its fields. For example, Procter & Gamble will never let competitors' detergents put on the market easily. The fierce attacker shows his opponent that it is best not to touch him, and the tiger's ass can't be touched.

5. Selective counterattack. May only respond to certain types of attacks, but not to other types of attacks. Therefore, we must understand the sensitive parts of such attackers and avoid unnecessary conflicts.

6. Random counterattack. Its counterattack is the most uncertain or unpredictable, and it may take any possible counterattack.

Three aspects of competitive analysis have been discussed above. In view of the importance of the competitive environment, it is very necessary for enterprises to establish an information system to monitor and analyze the competitive environment, so as to collect and analyze the strategic trends of competitors in a timely and systematic manner.