Value chain analysis, strategic cost analysis and other types of determining the competitiveness of the company by costs are necessary measures, but they are not enough. For a more accurate assessment of the competitive capabilities and position of the company, a number of additional factors should be studied, namely: the prospects for strengthening (weakening) the competitive position of the company while maintaining today’s strategy; the company’s place among the main competitors in terms of the presence of key success factors, strength of competitive position and resource opportunities; presence (absence) of competitive advantage; the company’s resistance to the driving forces of the industry, competitive pressure, possible actions of competitors.
The most promising method of determining the strength of a company’s competitive position is to quantify key success factors, competitive resources and opportunities. Most of the information for assessing the competitive position of the company is given by the previous stages of the study. Industry and competition analysis identifies key success factors and competitive opportunities that determine a company’s leadership or lag. The study and comparative assessment of competitors make it possible to identify the advantages and opportunities of rivals in costs, product quality, consumer value, image and reputation of the company, financial stability, technological capabilities, speed of introducing new products to the market, distribution opportunities, availability of competitive resources and opportunities.
The company’s competitive strategy is based on the use of competitive strengths and strengthening weaknesses. In addition, those strengths of the company, which are the weaknesses of competitors, are the best springboard for offensive initiatives.