A competitive strategy is applied, when weak sides overcome the strong sides inside the company, and there are opportunities dominating in the environment. The external occasions are hard to use, because they are connected with weaknesses of the enterprise.
The accepted strategy should minimize weaknesses in order to use internal occasions. You need to counter the weaknesses, try to fight them. It is possible, because the environment creates proper conditions.
Within the competitive strategy, you may consider the following conduct:
- expanding the owned resources – if weakness of the company relates to financial resources (but also other), you need to try to increase them, e.g. through concluding a cooperation agreement with another company, establishment of a consortium. This will allow to use the appearing opportunities, which are connected with opening of a new market, or with enhanced interest in a product, than the company is able to meet, etc. Conclusion of an agreement may also mean that your company gets rid of a threat, because in other case, the partner could become a competitor;
- improvement of products – think how you can sell your product more effectively, e.g. maybe your distribution channel do not allow to reach the target customers, or recipients are not interested in a product that you offer because it lacks something, they have different requirements, etc.;
- elevation of productiveness – probably, while using resources that you have at your disposal, you are able to produce more than previously. Take a closer look at the whole process and think whether it can be improved. Elevation of effectiveness will not cause too big costs, and it may be highly beneficial from the longer perspective;
- reduction of costs – try to reduce the costs that you incur. This will allow to transform at least a part of weak sides into strong ones, and will provide you with a feeling of comfort;
- maintenance of competitive advantage – try to maintain competitive advantage, using the appearing opportunities. It will be meaningful, when you manage to fight your weak sides. It is worth to consider a decrease of interdependency in relation to one product and to expand the assortment.