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Estimation Of Competing Ability

I. definition
Competing ability means the ability that in the competing market ,when having make best use of all the resources , an enterprise can meet customers¡¯ demands better and faster than competitors in the domain of design, production, sale and price, quality, service and so on so that the enterprise can get more profits and improve the ability of continual development. Or we can say it is the ability of continual development that an enterprise, during the competition, holds the advantage in the distribution of limited resources by improving it selves and interacting with outer environment in order to place itself in a benign recurrence.

II analysis of competitor group
The competition advantages of an enterprise refer mainly to the following points:
1. Strategy of product difference: an enterprise cannot offer all the products the customers need. After market segmentation and deciding the goal, the enterprise provides special product and service to the main goal market. To a corporation, because he is larger and stronger, he can be dividing into several independent groups and serve respectively different customer groups.
2. strategy of cost advantage: when estimating costs, enterprise should not only pay attention to control the costs of raw and processed materials, but also consider the costs of innovation, and management and running, sale expense, investment of skill improvement and dimensions benefits and so on. Meanwhile, the enterprise should notice if the competitors can be copied.
3. Strategy of goal focusing: after market segmentation, the enterprise should collect its advantages to offer special product and service to the certain goal market.

III model of market analysis
When analyze competition ability, MEGI uses usually ¡°the model of five abilities¡± to analyze the competition ability and attraction of the whole trade. The five abilities mentioned are: new competitors, menace of substitutes, bargaining ability of buyers, regaining ability of sellers and the completion of present competitors. The model SWTO is used frequently to analyze the enterprises, SWTO means: strengths, weakness, opportunities, threats. Analyzing the number of enterprise in the domestic trade, competition pattern and industry centralization is helpful to knowing intuitionally the competition situation.
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Add£ºAdd£ºXuhui Add£º1F, Material building,Shanghai Jiao Tong University,No.55 West-Guangyuan Road,Shanghai China(P.C.200030)
TEL£º18616858528 E-mail£ºstrategy@market-exp.com