The role of competitive strategies in increasing competition among companies based on the Porte r’s Model ) in Tractor making Company of Tabriz)
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 5, Issue 5
Abstract
The position of a company among its competitors in industry is a determinant factor in the amount of profit, that is; a company which can provide a suitable position for itself canearn a great deal of profit from the related industry and keeping the competitive advantage in the industry can guarantee the company’s position. The competitive advantages of companies have various dimensions depending on the structure of an industry and also whether the company dominates the whole market or just a part or parts of the market. This leads to different strategies among different companies. In order to understand these concepts and illustrate the best method for managers, Porter’s Model is presented in this study. The strategies provided by Porter in this model include cost management and production by the lowest possible costs in order to gain superiority among other competitors. To this end, Porter proposed high amount of production with the lowest price which is called scale economy. The second strategy is concentrating on one or some products or customers. In the third strategy which is distinction, the company starts producing and marketing a single product for a bigger market. Achieving this strategy needs developing a solitary form of career and using single technology.
Authors and Affiliations
TajzadehNamin Abolfazl| Associate professor, Faculty of Management and Accounting, AllamehTabataba’i University,tajzadehnamin@yahoo.com, Bahmaram Zahra| Graduate of Business Management International Business, email:Behmaramzahra@yahoo.com
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