Competition strategies 9 if new goods and services

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COMPETITION STRATEGIES 9 If new goods and services draw intensely from the company’s assets, knowledge and abilities, the company is exercising relevant diversification; when a little overlap is experienced, the company is considered to be exercising irrelevant diversification. Companies, in desire of relevant diversification work best through inner development, as they make use of inner strong points and avoid dealings costs and market actions. Companies involved in irrelevant diversification become successful best through merging and acquisitions, because this offers an organization the opportunity to purchase the abilities necessary to contend in product areas that are unrelated to the company. Stone (1996) defends that business success is dependent on the marketing methods that are employed in marketing a business. In this light, firms have the obligations to embrace specific business strategies to deal with competition. In the open business world, it is necessary for firms to scale up the strategies that they will put into place to help the business to succeed in the market. For instance, either businesses should expand into the international markets, directly or through opening up new networks that would ensure that the business is able to reach out to additional potential customers of the business. It is critical for businesses to open up new branch networks in order to minimize their dependent on a few competitive markets. 5.0 Discussion Firms Strategies to be Competitive in the Market It is evident of the need for firms to take on a number of strategies to be competitive in the market. The type of strategies that firms pick to be competitive in the market is very important in building the business success. Well-selected strategies that can counter the competition will work best for a business in making the firm make profits amidst increased
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COMPETITION STRATEGIES 10 competition. It is imperative that businesses take on the appropriate strategies to be competitive in the market. In addition to developing the business competitiveness of the business firms, it is also critical for the businesses to take on sustainable strategies to be competitive in the market. In my point of view, firms can be competitive in the market by embracing the following strategies (Roberts & Berger, 2000). The first strategy is firms that desire to be competitive in the market should develop better product. In this case, the business managers of these firms should invest in developing new and better products that the products of the competing firms. This strategy is so simple yet very effective in ensuring that the business is able to attract customers from other competing firms, as well as, retain the dominant customers. There is always a market for products that are best in the market. Investing on new and better products will always guarantee the company advantage in keeping and sustaining its consumer markets despite the competition.
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