An Analysis of the Competitive Environment as a Strategic Management Tool
Keywords:Strategic Management, competition, strategy, Porter’s Five Forces Strategic Management Model
AbstractPurpose of the article: The competitive environment is an important tool in Strategic Management. It is, therefore, necessary to deal with its analysis. The purpose of this paper is to show the use of Competitive Analysis in the course of the practical application of Porter’s Model. The initial approach is based upon theoretical points-of-view, which allow for their actual implementation in practice. Methodology/Methods: Is based upon methods – and implemented on the basis of the author´s knowledge and observations on economic monographs and economic journals. The contribution is founded upon the study and use of seventeen sources. The analysis of five competitive forces method was used in the author´s actual own research. On the basis of this method, it was possible to evaluate specific companies and to summarise their competitive trends. Scientific aim: The main scientific objective is the linking of theoretical knowledge with practical applications in selected companies, in which were assessed and recognized development trends in the 2011 to 2013 time span. The tool for achieving these goals is the performance of specific solutions for selected analyses. Findings: The analysis conducted suggests the need for the implementation of measures for the given company with the purpose of increasing its competitive abilities. The use of new technologies, the production of organic products and equally, reductions in product prices are presented as its concrete results. Conclusion: The development of business, and business activities, must be based on the use of strategic management tools, which however are based on analytical investigations of competitors. The paper also characterises the current strategic approaches. The author´s research was conducted in concrete companies. Based upon this, the analysed company must minimize the threat of substitute products, and strengthen awareness of their quality and the trademark and brand.
ORIGINAL SCIENTIFIC ARTICLE