Читать книгу STRICTLY GROWTH BUSINESS - Mike Illsley - Страница 9

Successful business is a war without end. No sooner has one competitor been vanquished than another moves in to attack. The vanquished competitor suddenly reappears with a far better weapon and renews the battle.

Every competitor is there to win and to prevail. The battle is fought over consumer preference and success is measured in terms of market share, cash generation and return on investment. The central marketing issue is product design. The central financial issue is the investment. The winners stay in business and enjoy excellent financial benefit. The losers at best make do with poor financial benefit, and at worst lose everything. Forcing the competition out of business is the ultimate goal. Closure is invariably caused by inadequate funds from poor volumes. Monopolies are simply not legally possible in the modern political environment and there will always be a number of competitors at work in any market. The winners command the largest share and, usually, the largest cash flow and best return on investment.

Choosing the war to fight is the single most important decision the strictly growth business ever has to face. Making this decision requires an understanding of commercial and political competitive strength.

The strength of competitive forces influences the market entry and positioning decisions. Every market will either have powerful competitive businesses already present or highly likely to be present over time. The business needs to satisfy itself that it has the skills, technology, willpower and financial muscle to survive the competitive challenge. Every market is made up of sectors and the competitive situation will vary within each. It is never easy to establish new skills and technology and businesses can quickly become at risk of playing catch-up. It is not enough for a business to have the financial capability to match competitors but also, and far more importantly, it has to have the willpower to stay the course. The decision to enter, or to continue operating in, one particular market will be affected by the opportunities available in other markets. The business has to believe it does have the competitive strength and willpower, and others do not, to decide to take on the battle.

Political considerations are also a central part of determining strategy. Some countries have very controlling governments and will support indigenous businesses at all costs. When key clients or competitors lie within these countries the ability to compete effectively can be drastically diminished. The developed western markets are generally free and open to fair competition but local businesses, whether independent or corporate, will usually prefer to source from local suppliers, especially those that have been suppliers for a long period. The business will need to assess the competitive chances politically as much as commercially.