How to win the competition in business

OUTLINE: I. Introduction II. Main content 1. The definition of competition 2. Competition advantages and disadvantages 2.1. Advantages: Competition drives innovation and quality It leads to collective learning It emphasises customer’s role 2.2. Disadvantages: The playing field isn’t level For instance, small companies often face many disadvantages as limited resources and lack of bargaining power with vendors Market share is divided among many 3. Types of competition 3.1. Based on the market participant People divide competition into 3 types: + Competition between sellers and buyers + Competition between buyers + Competition between sellers 3.2. Based on economic area People divide competition into 2 categories: + Competition within the industry + Competition among sectors 3.3. Based on the level and nature of competition in the market People divide competition intio 3 types: + Perfect competition + Imperfect competition + Monopolistic competition 4. The current competitive situation of businesses in the market The business market in the world is always fierce competition in all sectors. In Viet Nam, after the reform, the competition is more intense than ever. 4.1. The war between big businesses 4.2. Small and medium businesses in the fierce competition (For example) 5. Analyse the competitive environment 5.1. The first is competitive pressure from customers 5.2. The second is the power of supplier 5.3. The third is current competitors 5.4. The fourth is trends in alternative products. If a business wants to win the competition, they should have some important strategies as: 6. Identify brand 6.1. The concept of brand 6.2. Why do businesses have to identify their brand? 6.3. Brand’s role in the business 6.4. How do businesses identify their brand? 6.5. For example 7. Identify competitive advantages 7.1. The concept of competitive advantage There are basically three key areas to focus on when choosing a competitive advantage: Quality: Offer a superior quality than others Price: Offer the lowest price Service: Offer an unforgettable customer service 7.2. Give an example of Apple, a well known company around the world with extremely competitive strategies that no competitor can keep up with. 8. Creat a good relationship with your customers How to creat a good relationship with customers? 8.1. Leave a good impression in the first time 8.2. Stay calm respect your customers 8.3. Always listen to what the customers say 8.4. Get wrong and collect 8.5. Inspire customer loyalty 8.6. Membership card 8.7. Generating incentives, discounts,etc… 9. Advice III. Conclusion

GROUP:3 - CLASS: 1740ENTI2411

Thuong mai University

TOPIC: “How to win the competition?”

MEMBER:

1 Nguyễn Thị Xuân Quỳnh

2 Lê Hà Thu

3 Hoàng Thị Thủy

4 Phạm Thị Sang

5 Sùng Y Thanh

6 Phạm Thị Mai

7 Vũ Thị Hồng Nhung

OUTLINE:

I Introduction

II Main content

1 The definition of competition

2 Competition advantages and disadvantages

2.1 Advantages:

- Competition drives innovation and quality

- It leads to collective learning

- It emphasises customer’s role

2.2 Disadvantages:

- The playing field isn’t level

For instance, small companies often face many disadvantages as limited resources and lack of bargaining power with vendors

- Market share is divided among many

3 Types of competition

3.1 Based on the market participant

- People divide competition into 3 types:

+ Competition between sellers and buyers

+ Competition between buyers

+ Competition between sellers

3.2 Based on economic area

- People divide competition into 2 categories:

+ Competition within the industry

+ Competition among sectors

3.3 Based on the level and nature of competition in the market

- People divide competition intio 3 types:

+ Perfect competition

+ Imperfect competition

+ Monopolistic competition

4 The current competitive situation of businesses in the market

The business market in the world is always fierce competition in all sectors

In Viet Nam, after the reform, the competition is more intense than ever 4.1 The war between big businesses

4.2 Small and medium businesses in the fierce competition

(For example)

5 Analyse the competitive environment

5.1 The first is competitive pressure from customers

5.2 The second is the power of supplier

5.3 The third is current competitors

5.4 The fourth is trends in alternative products

If a business wants to win the competition, they should have some important strategies as:

6 Identify brand

6.1 The concept of brand

6.2 Why do businesses have to identify their brand?

6.3 Brand’s role in the business

6.4 How do businesses identify their brand?

6.5 For example

7 Identify competitive advantages

7.1 The concept of competitive advantage

There are basically three key areas to focus on when choosing a competitive advantage:

- Quality: Offer a superior quality than others

- Price: Offer the lowest price

- Service: Offer an unforgettable customer service

7.2 Give an example of Apple, a well- known company around the world with extremely competitive strategies that no competitor can keep up with

8 Creat a good relationship with your customers

How to creat a good relationship with customers? 8.1 Leave a good impression in the first time 8.2 Stay calm- respect your customers

8.3 Always listen to what the customers say 8.4 Get wrong and collect

8.5 Inspire customer loyalty

8.6 Membership card

8.7 Generating incentives, discounts,etc…

9 Advice

III Conclusion

-How to win the competition?

I Introduction

Today we would like to present to you topic :”How to win the

competition?” As you all know, in the marketplace, competition always exists Everyone often says :” Marketplace likes battlefield” Indeed, competiton is always fierce in business Business is a game and only the team with the best players will win So how to win the competition and why do businesses want to win the

competition ? We will together find out the answers for these questions

II Main content

1 The definition of competition:

In economics, "competition" is the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion

2 Competition advantages and disadvantages:

2.1 Advantages:

Competition drives innovation and quality: Competition puts pressure on

providers to constantly research, innovate and upgrade the quality of their products and services If businesses fail to identify emerging trends and changing

preferences in the marketplace, competitors can capture market share This makes businesses develop far stronger in the market

It leads to collective learning: In some cases, the best way to learn is to

watch other successful businesses perform In fact, some companies use second-mover strategy based on observing what first-second-mover companies do to succeed and trying to upgrade their products

It emphasises customer'role : Customer service and relationships are one

of the major elements of 21st century competitive strategy Customers play an important role in development of businesses It causes companies to invest time and effort in research and in relationship management processes so as to strengthen loyal relationship

2.2 Disadvantages:

The playing field isn't level: Though clever business leaders find ways to

use strengths and offset weaknesses, restrict competition But small companies often face many disadvantages as limited resources and lack of bargaining power with vendors, for instance

Market share is divided among many: The limit of competition is the

reality of sharing customers with other providers With open competition, every provider has some level of market share, so it is virtually impossible for a single provider to earn 100 percent of what customers spend on their products and

services

3 Types of competition

3.1 Based on the market participant

People split the three types:

-Competition between sellers and buyers :The competition is under the "law" buy cheap expensive Buyers always want to buy cheap, whereas sellers always want to sell expensive This competition is made in the process of bargaining and

eventually the price is formed and the sale action taken is taken

-Competition between buyers: Is the competition on the basis of supply-demand rules When a certain kind of goods and services whose supply is less than the consumer demand, the competition becomes drastic and the price of the service will increase The end result is that the seller is profitable and the buyer loses some money

-Competition between sellers: This is the toughest and most fierce competition, it

is vital for any business As commodity production grows, the number of sellers increases, the more aggressive the competition is because every enterprise wants to gain competitive advantage, gain market share of the competition, The win in this competition is increased sales, increased market share and along with increased profits, increased investment and expanded production

3.2 Based on economic area:

People divide competition into two categories:

-Competition within the industry: Is a competition between businesses that produce

or consume certain goods or services In this competition there is mutual

annexation Winning businesses will expand the scope of their activities in the marketplace Losing businesses will have to shrink business even to bankruptcy -Competition among sectors: Is the competition among business owners in

different economic sectors, to gain the greatest profit In the course of this

competition, business owners are always fascinated with profitable investments, which translates capital from less profitable to more profitable

3.3 Based on the level and nature of competition in the market

People divide competition into three categories:

-Perfect competition: Is a form of competition where there are many sellers, small buyers, none of them large enough to by their actions affect the price of services That means no matter how much production they can make, they can all sell their products at current market rates So a firm in a perfectly competitive market has no reason to sell cheaply than its market price Moreover, it will not increase its price higher than the market price because otherwise it will not sell anything The group

of participants in this market is the only way to adapt to the price, because the supply and demand on the market are free to form, the price to market determines the quantity demanded by all Supply can provide For the perfect competitive market, there will be no artificial supply and demand, not restricted by public administrative measures So in this market the market price will gradually reach the cost of production

-Imperfect competition: If a firm can significantly influence the market price for its output, it is listed as "imperfect competition firm" so imperfect competition is competitive in the market Not identical Each type of product may have a variety

of different brands, each with its own image and reputation, although the quality of the difference between the products is negligible Trading conditions are also very different Sellers can compete with each other to attract customers towards them in

a variety of ways, including advertising, promotions, price incentives before, during, and after the purchase This type of competition is very popular in the current period

-Monopolistic competition: Is competition in the market where some sell some homogeneous products or many sell a heterogeneous product They can control almost the entire quantity of products or goods sold on the market This market has

a mix of monopoly and competition called monopolistic competition, where

competition between monopolies occurs The conditions for entering or

withdrawing from the monopolistic competition market are more constrained due

to large capital or capital

4 The current competitive situation of businesses in the market

The business market in the world is always fierce competition in all sectors because every business is trying to get high market share In Vietnam, after the transition from a command economic system to a market economic system, the competition is more intense than ever The process of opening up international economic exchanges has enabled foreign investors to enter the domestic market, bringing many goods of high quality and beautiful designs to meet the needs of consumers Goods are more diverse, many types, consumers can choose goods in a variety of different goods

4.1 The war between the big businesses

Large businesses always have more customers than small and medium

businesses In many fields, we can see the fierce competition between big

companies: the race of apple-samsung in mobile phones production, kfc-lotteria-McDonalds battle in the fast food market, honda-toyota-suzuki in the field of motorcycle production, etc

The market in Vietnam is very potential So the battle between the big

business also came to Vietnam, including domestic and foreign enterprises

Foreign businesses mainly occupy the market of goods which can not be produced

in Vietnam such as cars, mobile phones and computers However, many

commercial businesses in Vietnam have succeeded by choosing to distribute these products instead of producing them, some big businesses such as thegioididong, dien may xanh, tran anh, fpt shop Although competition is fierce, many

Vietnamese enterprises have succeeded, such as the race between two viettel and vinaphone companies in the field of mobile networks; or competition of bitis sports shoes with two world famous brands are nike, adidas

4.2 Small and medium businesses in the fierce competition

About 98% of the total number of enterprises, small and medium enterprises (SMEs) play a very important role in the Vietnamese economy, contributing about 43.2% of GDP, 31% of exports, 29% of National budget revenue, creating jobs for more than 5 million people However, in reality, SMEs still faces many challenges

in competition and Economic integration

The statistics by the General Statistics Office show that about 20% of SMEs are active and competitive, 60% of SMEs are struggling to survive, 20% SMEs have been stopped working

Investment capital for new technologies is very low Quality doesn’t meet the international standard Businesses do not have business strategy but still mainly based on experience, business follow the trend Product network is very narrow Management level of SMEs is limited SMEs in Vietnam are competing in unequal conditions, so maintaining and developing the Vietnamese brand is also difficult

5.1 The first is customer pressure

Business customers are those who have demand for products (services) provided by the business For every business, the customer is the market of the business A customer for a business is not just a current customer but also a

potential customer The number, customer structure, size of demand, motive of purchase, tastes, requirements are factors to consider in strategic planning Pressure from customers forced businesses to consider when studying the internal

environment of the industry

This is the force that creates the bargaining power of the buyer Buyers can

be viewed as a competitive threat when they force businesses to reduce prices or require higher levels of quality and better service Conversely, weak buyers will give the business an opportunity to increase the price to earn more profit

Customers include end consumers, distributors and industrial buyers

5.2 The second is the power of the supplier

This is a force that affects the business and is considered a threatening

pressure when they are able to increase the price or change the quality of the inputs they provide to the business

In a nutshell, strategic planners must find the risks and opportunities from the supplier to have the right strategy

5.3 The third is current competitors

Current competitors are companies operating in the same industry as

businesses If the competition is weak then the business will have the opportunity

to increase the price and make more profit and the business can implement the

strategy of expansion On the contrary, as the stronger the competition, the price competition is significant and it is best to maintain stability avoiding price war

5.4 The fourth is trends in alternative products

Alternative products are other products that can satisfy the needs of

consumers However, it has many different features than the replaced product This

is an opportunity and also a threat to the business requires enterprises to have reasonable strategy for their products For example: The development of the

beverage industry has a huge impact on the business of traditional beverage

products

If the substitutes for the products of the industry are available then

customers may switch to alternative products if the existing enterprise has a higher price The determinants of the threat of alternative products are: the price and relative utility of alternative products, transfer fee for customers, customer

alternative

To win, businesses need to know their strengths and weaknesses as well as those of their competitors Know themselves is no longer sufficient in the competitive market According to Sun Tzu, the ancient author of the Art of War:

“If you are ignorant of both your enemy and yourself, then you a fool and certain

to be defeated in every battle” No matter how businesses think they know about their business, no matter how much experience they have in their chosen field, without a clear understanding of the competition in the market, they might as well

be driving blind To beat the competitors will require everyone’s collective effort It’s not just a task for the marketing department or top manager, it’s everyone’s responsibility No business can survive for a long time without some forms of competitive advantage We must target whether it’s a sustainably competitive advantage or not Because if they don’t, they can’t last their company’s life span more than their first year in business Therefore, if a business wants to succeed, they should have some important strategies as:

6 Identify brand

6.1 The concept of brand

Branding is a name, term, symbol, symbol, or design, or combination

thereof, to format the goods or services of a seller or a group of sellers to

distinguish them from the competition compete

6.2 Why do businesses have to identify their brand?

Make differences

When you have created your own brand, it is a powerful tool to differentiate you from your peers and competitors

Bring specific benefits in the short and long term such as better jobs,

stability, increased income, expanding business

When you have a well-known brand, you will naturally have more

opportunities in your field of activity

Increase competitiveness

When the brand is identified Businesses will attract and attract customers, create internal resources for employees; Create trust and unity of shareholders; Create gravity with partners

Improve business efficiency, sell more products, services and sell at higher prices Increased customer loyalty to the brand Easily overcome the risks that arise

in business

6.3 Brand’s role in the business

First, building a strong brand gives the business a tremendous advantage, not only because it creates the image of the product and the enterprise, but it also has important significance in creating the prestige of the product, promote the consumption of goods and be a sharp weapon in the competition

Second, with a strong brand, consumers will have confidence in the products

of the business, will be reassured and proud to use the product, loyalty to the

product and so the stability of the customer The present is very high

Third, with a strong brand name, businesses will have a strong foothold in the fierce market price competition, product distribution, attracting investment capital, attracting talents

Fourth, branding is the decisive factor when choosing to buy, because the brand gives them peace of mind about origin information, trust in product quality, save time searching for information Believe, reduce risk Therefore, if you want to dominate the market and develop production-business, you need to invest in

building and developing the brand

Thursday, a strong brand can increase profits and dividends

6.4 How do businesses identify their brand?

3 ways to identify the brand: