Introduction
In today's business world, companies must be competitive, only in this way will they be able to establish in today's markets where there is great competitive rivalry between companies. That is why when founding an organization or company, you must choose the best business strategy to follow since this is of utmost importance to achieve success since no company can be competing without mission, without objectives, without goals and without the strategies necessary to achieve these objectives, so it is extremely important that this decision is carefully analyzed. The strategy must be real and achievable otherwise the company will not be able to carry it out.
In this work it will be announced that the strategy within the organization includes all levels: corporate, business or competitive and functional. As well as the second level that has to do with competitiveness will also be analyzed and emphasized and this is how, it is intended to publicize these typologies, their similarities, differences and basic concepts that provide the entrepreneur with the fundamental idea of where to owe Go your company and in which typology you can frame your strategy to achieve business success.
Development
For Johnson and Scholes (1993), the strategy is the direction and scope of an organization in the long term, which will achieve advantages for the organization through its configuration of resources in a changing environment, to meet the needs of markets and meet shareholder expectations. This strategy deals with decisions about competing businesses, delimit the specific environment of the company and set its limits; and seeks to adapt the company to its environment.
That is why the strategy covers all levels of the organization: corporate, business or competitive and functional (Hax and Majluf, 1991) and each of these will be mentioned below.
The corporate level in turn is divided into three areas: a) product scope: in which the products in which it competes are determined-, b) the geographical scope: it decides whether to compete locally, nationally or internationally- and c) The vertical scope indicates the vertical activities in which the organization will participate.
The second level of the strategy is the competitive or business level. This level refers to the lines of action to be followed to improve the competitive positioning of each of the company's business units in their respective sectors, that is, it helps to achieve greater long-term sustainable competitive advantages.
Finally, there is a functional level that represents an important component of the business strategy, focusing on the actions carried out in the different functional areas. It is at this level that the most significant link between strategic management and other disciplines in the field of business management such as marketing, finance, human resources or information systems occurs, in addition to being the link between the planning and implementation.
For this reason, it is important that companies, before defining strategies, know what their competitive behavior is around them. The central unit of analysis is the one that will help you describe the competitive behavior of a company. Therefore, any direct, specific and directly observable movement in the market, initiated by a company to improve its market position, is considered competitive. Some examples of competitive actions are lowering of rates, improvements to current products or the launch of new promotional campaigns.
On the other hand, the competitive conduct of companies takes into account three dimensions: intensity, simplicity and competitive heterogeneity linked to the number and variety of competitive actions, which we will mention below with their respective definitions. Firstly, we find competitive intensity, which is defined as the total number of actions that a company has carried out in a given period, that is, when a company makes numerous competitive movements, or responds to the actions of its rivals, is dedicated to competing in actively.
Secondly, we find competitive simplicity, this refers to the variety in the set of actions that a company carries out in a few words, it is when organizations can choose between implementing many or few changes in their competitive sequence.
Finally, we find competitive heterogeneity, this refers to the differences between the competitive behavior of a company, number and types of shares, and that of its rivals.
Now the competitive strategy involves positioning a company to maximize the value of the capabilities that distinguish it from its competitors, while the objective of any generic strategy is "to create value for the buyers" (Porter, 1985). This means that the organization seeks a favorable competitive position in an industrial sector as well as tries to establish a profitable and sustainable position against the forces that determine competition in the industrial sector.
On the other hand, the competitive strategy of the company is widely understood, its analysis must be considered from an integrative perspective, considering, on the one hand, the way of competing that analyzes the competitive movements of the company as a whole, examining with intensity how it is going competing in a certain period of time.
conclusion
Finally, I can say that it is of utmost importance that companies define the competitive strategy that they will carry out to compete efficiently in the markets. And if the company intends to achieve its objectives, it must be very clear what its business strategy is and which segment will direct its offer, since not all industrial sectors offer the same opportunities, hence the importance of being able to take into account all the basic strategic elements. in order to establish a coherent and achievable strategy.
Therefore, it is vitally important that when conducting business strategy research, it is necessary to group according to the degree of similarity of the strategies chosen by the companies. Since all companies have different characteristics, resources and capacities, there cannot be a total coincidence, but typologies allow the creation of theory that guides companies in defining the strategy. It is a reality then, the importance of choosing a good competitive strategy that can direct the company towards a successful future.
Bibliographic references
- Johnson, G. and Scholes, K. (1993): “Exploring Corporate Strategy. Text and cases ”. Prentice Hall International, third edition. Hax, A. and Majluf, N. (1984): “Strategic Management: An Integrative Perspective. Prentice-Hall, Inc. Englewood Cliffs. New Jersey.Porter, M. (1985): “Competitive Strategy: Techniques for the analysis of the industrial and competitive sectors. Editorial Continental, México DF.
