Abstract
One of the problems related to management of competitiveness of the organizations operating in the service sector is poor methodological development of the issues of structure and content of the competitive strategy. The article reviews the most common approaches to understanding of the competitive strategy essence, namely, an approach known as «Porter's competitive strategies», Kotler's approach and the «biological» approach. The assessment of these approaches from the position of their application in the service sector on the example of retailing is provided. The notion of competitive strategy is clarified, and some of the principles of commercial organization competitiveness management, which are to be considered when devising a competitive strategy, are presented. On the basis of the process approach an iterative model of competitive strategy is proposed. The approach depicts the author's vision of the structure and main types of decisions taken when devising, adopting and implementing the competitive strategy. DOI: 10.5901/mjss.2015.v6n3s6p31
Highlights
Quality of service is a major factor in the competition of service industries
The purpose of this article is to develop a model of competitive strategy of the organization that operates in the service sector on the basis of the process approach
A process approach, we understand the approach that considers management as a set of interconnected continuous-known management functions and as a set of continuous interconnected business processes in the context of their results. We consider it necessary to do the following: 1. Provide more accurate determination of the basic concepts of the theory of management of competitiveness needed to study the modern approaches to the development of competitive strategy, such as "competition", "competitiveness", "competitive advantage", "management of competitiveness." 2
Summary
Quality of service is a major factor in the competition of service industries. Once the service level is lower than expected, the consumer usually very quickly switched to another service provider. Due to the high performance the company is cutting costs, which, in turn, entails a profit increase or decrease in the cost of services offered. In the latter case, the company has all the prerequisites to become a price leader in the market that will result in significant competitive advantage, especially in those segments of the market where consumers are increasingly sensitive to the price factor. The company has all the prerequisites to become a price leader in the market that will result in significant competitive advantage, especially in those segments of the market where consumers are increasingly sensitive to the price factor Cost reduction makes it possible to invest more in advertising
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