FORMULATION STRATEGY UNDER THE INFLUENCE OF POWER COMPETITION
Ljiljana Stošić Mihajlović
- Publisher: KD Mapro
Journal of Process Management. New Technologies
(issn: 2334-735X, eissn: 2334-7449)
strategy | competition | business excellence | Technology (General) | T1-995
In this work, the subject of the research is
defined starting hypothesis that formulation in the
form of answers to the question: What factors -
competitive forces shape strategy?
Strategy formulation essentially boils down to
competition. Competitors are all - customers,
suppliers, potential new entrants to the market and
producers of substitutes - and depending on the
industry, may be more or less important or active.
The first primary determinant of a firm's profitability
is the attractiveness of the system to which it belongs.
Competitive strategy must be developed from the
basic knowledge of the rules of competition that
determine the attractiveness of an economic system.
The ultimate aim of competitive strategy is to apply,
or - ideally - a change these rules in favor of the
company. In any economic system, regardless of
Whether it is domestic or international, and Whether
products or services, the rules of competition are
embodied in five competitive factors, the five basic
forces: the entry of new competitors into the market,
the threat of substitution, bargaining power of the
buyer, bargaining power of suppliers and rivalry
among existing competitors. Joint strength of these
forces determines the ultimate potential of an activity
to make a profit.