May include some examples of postal services, Internet and e-mail and the press, meetings and face-to-face and can be considered more of these means.
Competition means allowing users to choose between products and distributors (manufacturers) products.
This structural type is a relatively new concept in the developing world. The institutions were in the past government or a government under the direct supervision, this concept has begun to change with the fall of the communist bloc and Bdhukh capitalism and open market, where ideas become competitive and liberal, and privatization is the natural scale in all parts of the world. And institutions now in the midst of making crucial decisions and challenges for its future. Has recognized many countries the potential benefits to be derived from the competition, particularly with regard to increasing the effectiveness and extent of the expansion of the private sector where it began investigating strides in this direction.
Developing countries find themselves at different stages of liberation, so the competition can take many forms.
Different orientations include the following:
· Liberal means open competition for the domestic market to foreign investors. Bring liberal foreign capital and expertise required which are very important for the development of the objectives of the institutions. In order to promote the liberal Egyptian government for example has created an investment environment that is encouraging.
· Privatization means the transfer of government-owned enterprises in whole or in part to the private sector. In Egypt, the government allowed investors to compete in almost all fields, has sold many of the institutions of the public sector (government) to the private sector. Have discovered that the competition leads to economic development as well as additional benefits such as to attract private investment and to encourage creativity and effectiveness and improve the living conditions of workers.
Competition and marketing
Given the availability of a common understanding of some forms of infrastructure competition, we now look Look at how their relationship with marketing. Can say that the marketing of products and services is because of competition in the market. Although most institutions in Africa are still proprietary, but it will not continue in the near future because of the increasing pressure to meet the requirements more efficiently.
When there is competition the company must identify its goals and objectives so that you can compete with others. Means a marketing point of view in terms of competition to determine who are the competitors, which made up the competition and what are the strengths and strategies to these competitors?
Let's start with one of the structural analysis of competitive industries
Know the industry as a set of institutions or companies that provide products or services to replace each other. Include the structure of competitive industry the following factors:
· Number of vendors
· Contrast products
· Barriers to entry and exit
· Structural cost
· Vertical integration
· Access to globalization
Number of sellers: can range in the industry between one (monopoly) or several (oligopoly) or many (competitor), and the situation is different from one country to another. The most important question - with the rapid changes that occur on the market - what kind of structure do you expect during the next five years? And for the success of any marketing plan or strategy must anticipate the future and the future competition.
Contrast Products / Services: includes all properties that characterize what is offered from the institution of what competitors offer. It was a consumer needs in the past limited due to the limited means of communication, views, and promotion. However, the situation changed now with the development of means of communication, views, and promotion and advertising and the emergence of satellite channels specialized in advertising and purchase by phone, so that the products and services available, covering a wide range of needs.
What is the level of variation between institutions? You should be able to incorporate many of the services and products.
Entry and exit barriers: it can be said that the basic requirements to enter the market requires a lot of money, time and technology, and in many cases, regulatory and legal changes. Therefore, the expected competition must be submitted credibility of stable and long-term.
And can be disposed of companies interested in quick profit if handled government and investment authorities with this issue correctly.
What are the barriers to entry and exit in your country?
Structural cost: interested in the domain that must be exhausted the bulk of the funds to provide the product or service. For example, some areas require the cost of manufacturing and high-cost technology to build factories, and the high cost of the final product. And also include the cost of after-sales service.
And companies that are keen to identify the source of cost and is trying to develop a strategy to minimize as much as possible is the most successful in the end regardless of the competition.
Vertical integration: and deals with the extent of control the company's raw materials and manufacturing processes of products and distribution and sale. This applies to some sectors because of the almost total reliance on foreign producers of equipment, equipment and technology. If the local manufacturers can produce some of this equipment, it is possible to have more control over cost and interest in this area.
Analysis
In addition to understanding the factors referred to and to the role played by each factor in determining the structure of competition, there is a need to try and determine the goals and objectives of the competition. So you must study potential competitors' products, quality and pricing strategy for their target markets and by them. The knowledge of these factors help in determining the best marketing strategy of the institution. It is not easy to find this information and sometimes we need to make guesses based on limited information available. This is what happens even in an environment of advanced marketing.
Of the important steps in the analysis of competition, attention to institutions working in areas that can compete with the domain you are working with the institution. What are the advantages and disadvantages of the other products (can be referred to the transactions mentioned above)? What techniques are most competitive in the various countries and how the situation will be during the next ten years?
Should be considered trends that can appear in the field of structural change in the work of the institution. What are the benefits of liberalization, privatization or any other form of competition? What are the risks? What kind of competition for the most suitable structure for the development of the organization? What is the feeling within the organization to the competition?
Should not be limited to interest only competition, but must first define a strategy for the Foundation for the ability to compete. What are the advantages of enterprise competitiveness? Advantages of competition is the region where the power lies, while the institution where there is weakness in the opponent. Can be knowledge of the customer and the ability to meet the needs of a competitive advantage. Can also be the ownership of infrastructure, a competitive advantage.
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