Philosophy For Pte Exam Speaking 1

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Economy of scales. Usually the organizations which for the first time appeared in the market begin activities for sale of a new product in scales significantly smaller, than his traditional producers. Therefore their production and marketing costs are higher that causes at approximate equality of market prices receiving smaller profit, and maybe losses. Whether the organization, for the sake of development of new business is ready, to go to it?

Other concept of allocation of priority competitors is based on division of the let-out products into products of this group and into products substitutes. Proceeding from the concept characterizing various types of drinks, for example, the company of Pepsi of the competitors classifies by the directions of their activity on the following groups:

Results of research of all aspects of activity of competitors are used for definition with whom from them it is possible to compete and with whom you should not be got involved in competitive fight, serve the purposes of a choice of effective strategy of market activity.

As a matter of fact conversation goes about collecting and the analysis of information on the capacity of rival firms and level of its use. Such components of potential, as financial and economic, production, scientific and technical, personnel, organizational, marketing mean.

Anticipatory defense is based on the anticipating actions doing potential attack of competitors impossible or significantly weakening it, for example, expecting emergence in the market of the new competitor, it is possible to reduce the price of the production.

Force of a position of buyers. It as well as in the previous case in many respects is defined by type of the market on which the enterprises of branch and buyers of their production operate. The markets of the producer and buyer, respectively mean. Force of a position of buyers is defined first of all by the following factors.

Use of instruments of public relations (existence of special division or the certain employees who are carrying out public relations, payment and awarding of their work, the used tools – presentations, press releases, etc.).

It is obvious that only the part of attributes can be estimated quantitatively (at a force of nature of attribute or impossibility to receive quantitative information). Thereof it is widely used qualitative scales of measurements (better-worse, it is more-less, etc. with introduction of intermediate gradation).

On the basis of the analysis of the received estimates come to light strong and weaknesses of competitive fight in all studied directions of competitiveness. Further actions for fixing of strengths and elimination of weak places are developed.

Traditional producers of this branch can create barriers to new producers on the way of their penetration into the functioning marketing networks. In this case new producers should create the sales channels that demands high expenses.

Use of this method in some cases gives the chance to allocate to several hundred attributes, and, as a rule, their number exceeds 4 Following step consists in elimination of the excessive, duplicating attributes. Such work, being guided by logic and good knowledge of the studied goods, experts will see off.

Mobile defense is directed on distribution of the activity on the new markets for the purpose of creation of the base for future defensive and offensive actions. By expansion of the market the organization moves focus of the actions from the current product to fuller understanding of deep inquiries of the consumers mentioning all range of technological and other capabilities of the organization. Owing to relevancy of potential of the leader it does unpromising attacks from competitors.