Unfair competition and methods of combating it. Dirty methods of competition

If in the "dashing nineties" in competitive battles, as in war, all means were good, today more sophisticated methods are used. The best way to win in such a confrontation is to prepare for it in advance. We propose to consider five typical situations of competitive wars and five non-standard methods of counteraction.

Elena Lukina,

creative director, General Line!

You will learn:

• How to win the competitive war.
• How to beat competitors in the battle for the client.
• What to do if competitors are dumping.
• How can a competitor become a customer?

A competitor of the Ukrainian company Galakton launched a commercial discrediting its products, increasing its sales by 43%, while Galakton lost 40%. Sales of Tolstyak beer in Smolensk decreased by 4 times in 10 days: rivals elimination of competitors spread the word that Escherichia coli was found in the drink. No company is immune from competitive warfare in business. How to defeat competitors in the battle for a place in the market, save face and turn the situation in your favor?

If in the "dashing nineties" in competitive wars, as they say, all means were good, but today more sophisticated methods are used to eliminate competitors. The best way to defeat competitors in such a confrontation is to prepare for it in advance. I propose to consider five typical situations of competitive wars and five non-standard methods for eliminating competitors and countering their actions.

How to beat competitors in trading if you don't know them

What happened. At first glance, the situation may seem absurd. However, unfortunately, it is quite real. Suppose your company has been operating for more than a year, there are not so many players in the local market, the development strategy has been thought out, and promotion is in full swing. However, sales are falling.

Recommendation. We have such an example in our portfolio. The trucking service is two years old. The company is actively advertised and in its marketing policy focuses on the safety of delivery, that is, the integrity and safety of the cargo for the client. The market can hardly be called highly competitive, however, customers began to leave. To the question "Who are your competitors?" the commercial director listed the companies whose leaders he knew personally, those who were humanly unsympathetic to him. However, he did not have complete information, and as a result, the strategy built taking into account such a vision of the market turned out to be ineffective.

The solution was a simple and quick way of research - a survey. Developed options for communicating with clients through correspondence, telephone conversations or in personal meetings ( figure 2). All consumers were divided into groups: regular customers, failed customers and potential customers of a random choice who are not partners of the company.

Thus, the company received first-hand reliable information about real competitors, about its strengths and weaknesses, and about what to rely on so that potential customers move into the rank of regular ones. Most of the respondents mentioned firms that the commercial director did not even consider as rivals. The survey also showed that what is important for the consumer is not the safety of goods (all players guarantee it by default), but how the manager talks to him on the phone. Many failed customers noted that they were answered dryly, sometimes even rudely. Measures were taken immediately and the situation improved.

I want to emphasize that when conducting surveys and local research, it is important to thank the respondent for participating. A small gift will be a nice addition: chocolate in branded packaging delivered by courier, a discount or an interesting article written by your marketer.

Conclusion. If there is no industry market research, when developing strategic campaigns, use the rule: it does not matter who you consider a competitor, what matters is which companies the consumer chooses between. To find out, sometimes it is enough to ask customers - their own and others.

To find out what about your competitors first hand, survey customers - download list of questions, which will help you learn about your advantages and disadvantages over competitors.

How to conduct a competitive analysis: a ready-made algorithm

In order for the consumer to choose your product, show them how you differ from competitors. The editors of the "Commercial Director" have found for you a simple but effective algorithm that will help you monitor your competitors and fight them.

What to do if a competitor steals your idea

What happened. Your company introduces a unique product or service: conducts a marketing campaign, accustoms people to the product. You are already looking forward to growing sales, but suddenly a new player appears on the market who came up with exactly the same solution, or maybe just borrowed your idea. A newly minted competitor may be stronger, for example, instead of one store, open five at once. You will not only lose the planned profit, but, worse, at your own expense, "educate" the consumer for a competitor.

Recommendation. Before you write: “This has never happened in our city!”, think about the fact that your idea may be picked up by a competitor. Therefore, it is necessary to seriously prepare for the attack. If the proposal is really new (for example, a massage technique or a spa treatment using certain herbs or therapeutic muds), register a patent so that a competitor cannot use your idea. But this option is also unreliable: it is enough to make a slight change in a product or service, and officially it will be a different product. Therefore, it is necessary to build promotion in such a way that your unique offer is associated only with your company. So, no one is looking for duct tape in the store - everyone just asks for scotch tape. In the minds of the consumer, innovation should be firmly associated with the name of your company.

If you have not become a leader during your work in the market, it is really difficult to save the situation. For example, a small company opened the first crossbow shooting range in the city. The idea is unique - there were no competitors at the time of opening. Three or four months later, a major player came to the market and launched a whole network of shooting ranges, including crossbow ones. There was an outflow of visitors to the network, in which prices were lower due to large turnover, and the pioneer company began to lose profit. However, its leaders did not lose their heads: together with the sponsors, they organized a city tournament on the basis of the club, after which they began to position the shooting range as an elite club - a place where not amateurs gather, but professional shooters, where crossbow shooting is elevated to the rank of philosophy. Now the shooting ranges of a competitor were perceived as ordinary establishments in which teenagers from a neighboring yard, drinking beer, indiscriminately shoot at targets. A serious and solvent public has increasingly begun to turn to a solid professional club.

Conclusion. If a competitor steals your idea, you are left with two paths: either try to retain loyal customers and work for your audience (like convenience stores or beauty salons that serve a limited number of customers), or modify the product or service to create a unique advantage. Find the weaknesses of the "follower", and offer the market something that other players in your sector are not capable of.

A competitor sabotages your products, how to protect yourself?

What happened. The market in which you work is highly competitive, and all players are approximately equal in terms of products and services.

Recommendation. As an example, I will give another situation from our practice. In 2011, a law was passed legalizing the activities of microfinance organizations, after which the number of companies issuing small loans for short periods (Pay Day Loans format) began to grow exponentially: Quick Money, Migcredit, Home Money, " Express Loan. We received an order to create a new federal brand in this market. It should be noted that the mechanism for providing such services is the same for all market participants, so it is not easy to find rational advantages that would allow the consumer to make a specific choice. Then we began to study not the market, but the consumer: who is this person who urgently needed money, why did he turn to a microfinance organization, what emotions does he experience?

In the course of psychological research, we found that the speed of obtaining a loan is not so important for the consumer. It is not even a unique advantage, as it was presented by all market players. This is just a feature of the service. The need to take a microcredit is usually caused by some kind of force majeure situation (accident, dismissal, doctor's appointment, date for which there is no money), so empathy is important for the consumer. If the manager dryly offers to fill out a questionnaire and looks suspiciously (“will he give the money or not?”), then the whole procedure resembles begging for alms rather than service. Based on this, we proposed to build development on a friendly attitude towards the consumer: we named the company “Miladenezhka”, and managers were recommended to meet customers with a polite question: “What happened to you?”. Thanks to these actions, the new brand has succeeded, the network of offices is actively developing, and the franchise is successfully sold in different regions of the country.

Conclusion. The key to success in a highly competitive market is a clear and precise positioning of the company: how you differ from others and how you attract customers. When you study the market and understand how competitors' offers meet consumer expectations, develop an interesting and effective development strategy. Focus on your features, whether it's an unusual service or a catchy package.

• Competitive Advantage: A Review of Strategies in a Crisis

Killer tricks to eliminate competitors

Black PR. Any company in market conditions can be destroyed, and unscrupulous competitors take advantage of this, not unreasonably assuming that it is much easier to denigrate a competitor than to convey their advantages to the consumer. Black PR can be considered the leader of an unscrupulous competitive attack. Some companies pay the media for commissioned materials or spread rumors themselves in the media environment.

Often, a media campaign is aimed at discrediting business owners and top managers. Also, publications may relate to poor management at the enterprise, inefficient use of property, non-fulfillment of contractual obligations, violation of the rights of employees, alleged bankruptcy. In order to discredit the company in the eyes of partners, unscrupulous competitors can throw in the media truthful, but discrediting information.

Redemption of a loan. This is a scheme that has already become a classic of the genre, when a company's overdue and poorly managed accounts payable are bought out by an unscrupulous competitor from creditors (usually consent from the debtor is not required). Then the enterprising rival files a lawsuit in court and, on the basis of the received writ of execution, seizes the company or initiates bankruptcy proceedings.

Psychoadministrative attack. Some companies actively write statements to the relevant law enforcement agencies with a request to check the activities of a competitor, as well as initiate various lawsuits (for example, on the collection of receivables, although these issues were previously resolved in the negotiation process), and then actively cover them in the media in order to defame the enemy . Tellingly, such actions are massive in order to psychologically weaken the opponent.

Competitors can go even further. For example, to initiate an on-site extraordinary inspection of control and supervisory services, accompanied by a large-scale seizure of documents or a demand for copies of corporate and financial and economic documents, which subsequently end up in the hands of the instigator of the inspection. Such actions are aimed at disorganizing the current financial activities of the company.

"KD" based on materials from open sources

Competitive Wars: Capturing Advertising Channels

What happened. Until recently, your company bought out advertising blocks in specialized publications a year in advance. Today they were bought by a competitor. Moreover, your structures are dismantled, and advertising posters are hung with ads of the opponent or simply painted over.

Recommendation. When we were developing an advertising campaign for a boiler equipment service center, we traveled around many cottage villages where the target audience lives. All direct competitors advertised on billboards along highways, so we decided to use a different advertising ploy. We made a batch of booklets stylized as "bombs" on a magnetic basis and attached them to the gates of cottage plots. The booklets contained the following information: “Are you sure there is no bomb in your house? It is quite large and is located in your basement. Maintenance-free boiler equipment is a ticking time bomb. Do not risk the health and lives of loved ones.

Be sure to check the boiler twice a year. Next came information about the boiler center: address, phone number. The three-thousandth edition cost about 70 thousand rubles. - the same amount would have to be spent on advertising on three banners within a month. But banner ads wouldn't have been able to generate that much traffic, with post-promotion hits up 48% year-over-year, more than three times more than expected. Note that the action did not cause any negative feedback. We placed announcements of the same boiler center in the city newspaper, but not in advertising blocks, but first on the sports page and then in the Crime section.

Conclusion. One of the most common mistakes is to use the same advertising channels that a competitor chooses (magazines, distribution areas). In advancing, it is always necessary to look for new ways. Even if you use the same channels as your competitors, look for bright, non-standard solutions.

What to do if competitors are dumping

What happened. Competitors spontaneously reduce prices, forcing them to follow their example.

It is necessary to find an advantage that will compensate the consumer for the difference in price. For example, the supply of dry building mixes may be accompanied by the departure of a consultant. In an advertisement, a higher price must be argued in such a way that cheapness will seem like a dubious advantage: “We care about your health,” “You deserve it,” and the like, depending on your target audience.

Another option is to create a duplicate brand in a lower price segment in response to price cuts. He will take the brunt, and you keep the profit. Thus, large advertising agencies open subsidiaries whose services are much cheaper. This creates a launching pad for young designers: they can learn from low-cost commissions.

Conclusion. If a competitor knocks the bar down, take your time to follow suit. The consumer gets used to the reduced price, and it will be difficult to raise it again without compromising demand. Create added value for your product or service. Or look for other moves, take risks and make a profit.

How can a competitor turn into a customer?

Vitaly Katranzhi, sales trainer, Oy-li

Once, while working with a small company specializing in the organization of communication networks, we faced in the struggle for a large and promising client with a market leader and a former monopolist, which is now part of Rostelecom. Our offer was very profitable, but the competitor promised better conditions, technology and connection price. We understood that we were not able to complete this project in such a time frame and with such a budget, and we relented.

However, relations with the customer were not interrupted and a third-party audit of the competitor's actions was constantly carried out. In personal communication with the customer, we gently and accurately predicted possible problems with a competitor during the implementation of the project. And when it became clear to everyone that a major player could not cope with the task, we prepared an agreement in which we acted as a subcontractor for this project. For a competitor, this project was not very profitable anyway. And in order to avoid legal costs and blacklisting the company as unreliable suppliers, he signed a contract on our terms.

Thus, we not only implemented the project within the terms established by the contract, but also received a good profit. The most important acquisition was a loyal client, who implemented all subsequent projects through our company. In addition, the competitor was convinced that our connection technology could save the day in many other sites where deadlines were being delayed.

Elena Lukina Graduated from Samara State University of Economics. With the company since 2008. Author of master classes in marketing and advertising.

creative agency General line!(Samara) provides services for the development and implementation of advertising campaigns, branding, copywriting, as well as the production of graphic products and websites. On the market since 1997. In 2011, the company opened a representative office in London. Official site - www.linia.biz

"Contact-Expert" provides marketing consulting services. On the market since 2003. Clients - more than 100 Russian and international organizations. Official site - www.expertkey.com

Oy-li provides services in the field of sales development, selection and training of specialists of the commercial department, website promotion and development of promotional materials. On the market since 2011. Official site - www.oy-li.ru

From this article you will learn:

• What is the essence of competition
• What are the types of competition
• What methods are used in competition
• What are the competitive strategies
• How to create your own competitive strategy
• How to determine competitive advantage

Competition and competition can be perceived in different ways, but the fact that these phenomena exist in our lives is indisputable, and it is foolish to deny them. The role of competition cannot be underestimated. It is important to understand that competition is an integral part of the modern market economy, so any company will always be surrounded by competitors. In pursuit of customers, modern companies resort to a wide range of means of competition. Real businessmen know for sure: a company that cannot compete in the market is not capable of successful development.

Rules, principles and goals of competition

A person has to deal with competition almost throughout his life. One of the main development goals of any company in the small business sector is to create competitive advantages. If a company does not have clear advantages over competitors, then it will be extremely difficult for it to stay afloat in the course of competition. It is impossible to avoid it: you must either fight and bet on winning, or lose and leave the market.

Any business develops in a competitive environment that constantly exists in the market and in the process of which a wide variety of tools and business resources are used. A company in the small business sector, which is not able to effectively resist competitors, will reduce its market share, the sad consequence of which will be the loss of customers, and, as a result, the closure of the company due to the impossibility of further growth and development.

Small business development is impossible without great competition. This is confirmed by data from statistics and surveys of entrepreneurs. This is also evidenced by the large number of small businesses that are forced to cease to exist due to too much competition in their sector and the inability to withstand competition. According to statistical studies, most of the closing firms (75%) leave the market precisely because of high competition, and 65% of entrepreneurs representing small businesses note the most severe conditions of competition under which they have to survive.

All this means that the development of small businesses is problematic. Without deep knowledge, it will be extremely difficult for a manager to keep the company afloat in a highly competitive environment. It is very important to put into practice those methods and methods that can help to withstand competition in today's market.

The term "competition" is derived from the Latin verb "concurrere", which has several different connotations. On the one hand, it can be translated by the verb "to run away." Another adequate translation would be the verbs "compete", "compete". Competition between companies is a competitive process between manufacturers and sellers of products of the same kind in the same market sector. Competitive struggle is expressed in the rivalry of companies in order to occupy a place with optimal conditions in the market, allowing them to gain a large market share and number of customers, as well as greater profits and revenues.

Competition Rules:

1. In the market, it is much more important not to be last than to take a leading position. Of course, becoming a market leader in your sector is great, but it is important to understand that only a few can achieve such success.
2. The winner in the market is the entrepreneur who has taken care of creating a competitive advantage for his company.

Small businesses often have very few resources, which limits their ability to choose the means and methods of competition and does not allow them to become market leaders. It is important to concentrate your efforts in a narrow niche of the market and try to get ahead of your closest competitors.

Let's take a closer look goals of competition. The essence of competition is the desire to improve the position of the company in the market. The organization of competition consists in a set of certain measures and actions aimed at maintaining and increasing the market share, and therefore, at retaining and increasing the number of its customers. The goals of competition can be minimum and maximum. The minimum goal is to retain customers and maintain market share through actions that prevent them from moving to competitors. The maximum goal of a business will be to expand its market share by poaching customers from its competitors. Thanks to the development of competition, small businesses can not only strengthen their positions in the market, but also help find solutions in some important areas. For example:

• determine the market value of small business products or services;
• distribute profits more responsibly and reasonably;
• exercise their right to choose the consumer;
• regulate the distribution of funds between producers and market niches;
• develop and apply tactics to counter the main competitors in both small and large businesses.

The essence of competition in business can be reflected in the following principles:

1. Do not harm the market or the niche in which the business develops. The technique of competition should not lead to a reduction in market volume, a drop in prices for products or services of small businesses.
2. Do no harm to your business. Actions directed against competing companies should not negatively affect the profits and profitability of your company in the long run. Some strategies may lead to a temporary reduction in the level of profit, but they, as a rule, provide for its growth in the future.
3. To carry out actions and make decisions in a competitive environment in strict accordance with the law. It is important to know and apply legal methods of competition, to adhere to the norms in the field of law and ethics. You should avoid actions that discredit or discredit your competitors.
4. Do not repeat the behavior of competitors. It is better to try to develop your own principles and rules for conducting competition, which will allow you to be ahead of your competitors.
5. Maximize your business competitive advantage.
6. Know and be able to turn the weaknesses of competitors in your favor.

Types of competition

Quite often, an entrepreneur chooses a particular market for his business based on the level of competition in it. From this point of view, it is important to know that there are different types of competition:

1. functional competitive fight. Occurs in a situation where the same need can be satisfied in different ways. Then all products that can satisfy this need will be functional competitors.

For example, both a bicycle and a car are able to satisfy a person's need for movement. Functional competition is quite common in the market, and you have to deal with it, even if you produce a unique product.

1. Species competitive fight. It occurs when an enterprise produces products that are intended for the same need, but differ in the most important parameters. For example: cars of the same class with different engine power.
2. subject The competitive struggle of companies arises when almost identical goods are produced, which only in rare cases differ in quality.

The main forms of competition

The main forms of competition include perfect (pure) and imperfect competition.

• Pure (perfect) competition.

Such competition occurs when there are many sellers and many buyers of the same product. If one of the sellers changes the price of their product, then the reaction to this action arises from the buyers, but not the sellers. The market remains open to every seller. The organization of advertising campaigns does not play a significant role, because only homogeneous products are put up for sale, the market remains transparent without any preferences. In such a market, the price will initially be a given value.

Perfect competition will be clearly observed when the demand for the producers' goods is perfectly elastic. This will indicate that the number of sellers will grow, and the volume of production of each of them will be a very small share of the total output of this product. In addition, all buyers will be in an equal position to choose a seller according to their tastes and preferences, so the market will be dominated by an atmosphere of perfect competition with its characteristic relationships.

• Monopolistic competition.

In a market of monopolistic competition, there are many sellers and buyers who execute their transactions in a fairly wide range of prices, and not at a single market price. This is due to the fact that sellers can offer buyers a wide selection of goods that may differ slightly from each other in quality, properties, and appearance. For buyers, this means that there are different offers with a wide range of prices. In order to compare favorably with their competitors not only by price, sellers try to come up with different offers for market segments: they assign brand names to products, work on advertising, and use personal selling methods. Due to the presence of a large number of competing companies in the market, such marketing strategies do not affect each participant as much as they would in a monopoly market.

• Oligopoly.

Oligopolistic competition is characterized by a small number of sellers, each of which is sensitive to the marketing strategies and actions of competitors. Products can be either homogeneous (for example, steel, aluminum) or heterogeneous (cars, personal computers). The small number of sellers can be explained by the fact that it is not easy to enter such a market as a new participant.

The oligopolist will never be sure that he can achieve any desired result in the long run only by lowering the price of his product. But on the other hand, if the oligopolist raises prices, competitors will not be able to follow his example and he will be in a situation where he will need to return his previous prices or be prepared for the fact that some customers will go to competitors because of better prices.

• Pure monopoly.

Pure monopoly means that there is only one seller in the market. The seller may be a government organization, a private regulated or unregulated monopoly. Pricing depends on each individual case. State monopoly with the help of pricing policy can achieve a variety of goals.

For example, it may set prices that are below the cost of goods if the goods are important to consumers but they are unable to purchase them at their real value. In other cases, the price may be determined to cover costs or to make a good profit. In some situations, the price is set especially high in order to reduce the consumption of this product. Under a regulated monopoly, the government may allow sellers to charge prices that will provide a "fair rate of return." This can allow businesses to maintain their production or even expand it.

On the other hand, under the conditions of an unregulated monopoly, the company acquires the right to independently determine the price in accordance with market conditions. At the same time, firms do not always set the maximum possible prices. On the one hand, this is due to the reluctance to give competitors the opportunity to attract customers to themselves at lower prices, and on the other hand, the desire to occupy as much (if possible) market space due to prices that are acceptable to buyers.

What factors of competition affect its intensity

Healthy competition is essential for a healthy economy. Its development is determined by competitive factors. Experts believe that the intensity of competition may depend on various circumstances. Let's highlight the most common:

• The scale of production (sales, sales). A company that has just appeared on the market has a much smaller sales scale compared to established manufacturers. Selling costs for a new business are much higher, resulting in lower profits and sometimes even losses, even if average market prices are set.

Are managers ready to accept such conditions in the name of developing and strengthening their business? After all, the longer a company is in a certain market sector, the more effort is required to maintain the level of the company and gain new positions in the market. This requires financial investments, which means that you need to be prepared for the risks associated with them.

• Brand familiarity. Almost all people have a tendency to stereotypical thinking. For this reason, it is quite common for buyers to target specific brands or brands that they believe produce quality products, or simply because they are known to everyone. It is important for new market participants to make efforts to make their name popular among buyers. For aspiring entrepreneurs, this is not an easy task.
• The number of competing firms. The more entrepreneurs are involved in one business sector, the more fierce their competition is.
• The dynamics of supply and demand, as well as their relationship. Depending on the fluctuations of these factors, changes occur in the field of competition.
• actions of direct competitors. The activities of direct competitors associated with an increase in sales volumes due to price reduction, or other strategies of competitors provoke other market participants to respond.
• The competitive potential of entrepreneurs involved in a particular business sector. The danger of competition may be not only in the number of competitors, but also in their quality, namely, how well they will be able to compete and pose a threat to other market participants.
• The success of one of the entrepreneurs using certain tactics and moves. Some entrepreneurs copy the successful methods and actions of their competitors, but there are those who, looking at the activity of competitors, try to participate in the competition more creatively and thus increase their level of competitiveness.
• The use of aggressive methods of competition. For example, the acquisition of obviously weak, non-competitive companies.
• The emergence of new competitors who use non-standard methods of competition. Such new players in the market can seriously weaken the position of other businessmen who prefer the classical technique of competitive struggle.
• Small differentiation of manufactured products (services). This factor leads to the fact that the number of competitors in the market increases due to the fact that the market sector becomes more and more segmented. The growth in the number of competitors, of course, intensifies the competition and complicates the conditions for its participants.

The organization of modern competition is due to external factors on which the activities of direct competitors in a particular market sector depend. These factors and dynamics need to be taken into account in the process of developing a marketing plan, strategies and techniques for surviving the competition.

Methods of competitive struggle in the market

You most likely understand that the ways of competing in today's market can be both fair and dishonest. Fair competition is carried out using price and non-price methods.

• price methods. By the name of this technique, you can understand that we are talking about a deliberate price reduction. First, you lower your price specifically to lure customers away from your competitors. Once you have a large market share, you raise your prices to offset your costs. In addition, price methods include reducing production costs or reducing the cost of a product. For any business, this method of competition is the main one. Thus, price methods are based on the gradual reduction of production costs by increasing labor productivity with the help of new technologies and other effective methods. It should be noted that today price methods cannot be attributed to the optimal means of competition. As a rule, they are resorted to by small companies that are not able to compete using non-price methods. At the same time, it is important to be aware of some situations in which the use of pricing methods would be appropriate and justified: for example, if a large enterprise wants to enter the market with a new product offer. Or in the event of a crisis or a decrease in purchasing power. In these cases, price methods will have a positive effect, as they will perform a social function.

In these cases, price discrimination (that is, different prices for different categories of consumers) will allow companies to maintain their level of profit, while keeping buyers satisfied. Along with the advantages, it is important to note the disadvantages of price competition methods. For example, attracting customers with low prices leads to the fact that you acquire not very reliable customers, since they can leave you at any time for other manufacturers if their prices are lower than yours.

• Non-price methods. Here, efforts to improve the quality of the product come to the fore. This can be done in two ways: improve the characteristics of the product itself (competition on the product) or explore the needs of customers and try to sell the product exactly in accordance with them (competition on the terms of sale). The second option involves improving the quality of customer service, as well as paying great attention to creating a unique product with high quality and, precisely because of this, win the competition (and not by reducing the price, as with pricing methods). Thus, non-price methods are implemented through continuous improvement and improvement of the quality characteristics of products. Companies try to take into account all the needs and wishes of customers: they offer various payment options, provide a guarantee, provide post-warranty service, etc. Non-price methods of competition are also expressed in showing attention to customer needs.

Unfair competition. Some entrepreneurs, in their quest to win over competitors, use unfair competitive methods that go against ethical standards. Sometimes they can even stay within the law, but still be dishonest. There are so many of them that it is difficult to classify. You can select the most popular:

• Dumping. The company seriously reduces the price of its product in order to force competitors out of its market segment.
• Misinformation of competitors and consumers. You can misinform customers and competitors directly and indirectly. Direct misinformation consists of false information regarding the composition of the product, shelf life and other aspects, while indirect misinformation can be expressed in an almost identical design and product name, that is, imitation of a competitor. Such means of competition mislead the buyer into offering a lesser quality product and exposing the company whose design and name was used, as it may lose customers due to the deterioration of its reputation.
• Compromising an opponent. Dissemination of false information about a competitor company and its products.
• Industrial and economic espionage.
• Criminal methods of competition. In this case, we mean actions that entail criminal liability (kidnapping, death threats, arson, causing harm to health and property). Methods that cause trouble to a competitor through the involvement of various regulatory authorities (SES, fire safety service, tax authorities, etc.) can also fall under this category.

Popular competitive strategies

Strategy is the main way to manage the development of a company. Competitive strategy is the company's actions that are aimed at its promotion within the market segment and are aimed at taking a leading position in the industry. Competition is determined by the goals that the company's management sets for the company. The competitive strategy can be reflected in a specific document describing the rules of conduct in the market and the rules for interacting with competitors. Competitive struggle can have minimum and maximum goals. The minimum goal may be to maintain and stabilize personal market share and retain their customers. The maximum goal of competition can be expressed in the desire to expand its presence in the market, "selecting" customers from its competitors.

There are two main competitive tactics:

1. Active (offensive) strategies involves actions that are aimed at actively fighting a competitor in order to gain market share. This tactic is most often carried out in relation to key competitors. Following it, you can justify almost all actions aimed at "poaching" customers from competitors and attracting them to their products.

The offensive strategy of competitive struggle has several subspecies:

• Frontal attack. Already by the name it can be determined that in this strategy all possible sides of the enemy are under attack - both products, and promotion, and prices. The main principle of this subspecies of an active strategy is the use of all tools against a competitor to the maximum. "To beat the enemy with his own weapon", but to surpass in intensity. Example: A competitor is actively using advertising to attract customers. You also use this method, but you need to do it several times more actively so that the competitor looks pale against your background.
• Flank attack. In this strategy, it is important to identify the weak side of your opponent and strike with an eye on it. As a rule, this strategy is used by companies that have limited resources. It is difficult for them to engage in frontal combat with rivals, so they attack from the side. This tactic also aims to fill the market segment with unmet needs. Example: Japan has become the world's leading economy car manufacturer. This is an example of worldwide practice and the advantages of flank tactics over a frontal attack.
• Encirclement (siege). The behavior of a competitor is thoroughly investigated over time, the emphasis is on identifying weaknesses and analyzing them. This tactic can be called waiting and correlated with the motto "slowly but surely." It is in many ways similar to a flank attack and is actively used in small companies.
• Bypass. According to this strategy, the company does not participate in direct product competition with its competitors, but consistently works to create its own unique product that will not interfere with competitors' products in any way.

2. Passive strategies are aimed at peaceful interaction with competitors, which allows you to gradually and slowly expand your presence in the market and increase profits. Small companies often resort to such strategies. Due to the actions within the framework of such strategies, firms do not provoke a response from key players in the market.

Characteristic features of passive strategies:

• directed more at individual small segments of the market, are not suitable for “conquering” the entire market with their help;
• are aimed at the development of technologies in the direction of reducing costs and basic costs;
• the main goal is to increase profits, not market share or sales.

Subtypes of passive competitive strategies:

• Copying "promoted" goods(“we do the same as they do, but twice cheaper”). The company must have enough resources to create a quality copy of the products.
• Small market niche strategy. It is used by companies in the small business sector and consists in the sale of original products within a very small market segment. The unique skills and abilities of the manufacturer are taken as the basis: making decorative items from leather, figured metal forging, etc.
• Participation strategy. The company creates a product or service that is an integral part of the products that a competitor produces (for example, furniture or clothing accessories, automotive chemicals).
• Saving positions. The main principle is to maintain those positions that have already been won, to maintain its level of development and market share. The desire not to intersect with more serious players in this segment. The disadvantage of this tactic is low viability.
• Franchising. The company operates under the auspices of a larger and more serious market player. Franchise relations between companies are fixed by a special agreement. This strategy suits small businesses.

How to independently develop a competitive strategy: step by step instructions

Step 1. Determine how to compete.

As mentioned above, in global marketing, two main directions of competitive strategies can be distinguished: active (offensive, or proactive) and passive. Each category has many subtypes.

Your choice of strategy may be determined by the following factors:

• the industry of the company and how high the level of competition in it;
• the state of the economic sphere: how stable and resistant it is to the consequences of the crisis;
• the goals of the owner of the enterprise;
• the state of affairs of the company (both strengths and weaknesses are taken into account);
• the practice of applying previous strategies (we consistently use what brought good results, we learn from erroneous steps).

In general, we can talk about the need to choose from the following options:

1. Compete in the market by lowering the price of the product and increasing sales by achieving a low cost of the product.
2. Produce a unique product and thereby be ahead of your competitors.
3. Increase the loyalty of your customers and work to keep them. Even a small number of loyal and regular customers will allow you to successfully compete in the market.

Step 2 Define target market.

Knowing your strengths and the long-term attractiveness of your market segment will help you identify your target market. The attractiveness of the market can be assessed by the dynamics and sales volumes. It is convenient and profitable to work in a market where the level of competition is low. When choosing a target market, a map of strategic competitor groups can also help you. In some cases, the number of competitors in the market is so large that a separate detailed analysis of each of them is not possible. Creating a map of strategic competitive groups will be a great solution for this situation. The map is made up of competing companies that occupy approximately equal market shares. It is necessary to break them into groups on some basis: products of the same plan, common distribution channels, similar technologies, identical pricing policy, etc.

For example, we give possible criteria for classifying competitors into groups in the market:

• Specialization: narrow profile or for a wide market.
• Business level: local, regional, national, international.
• Business scale: small, medium, large.
• Know-how strategy: innovator, follower.

With the help of the map of strategic competitive groups, you will be able to make the final choice of the target market.

Step 3 Identify and consolidate competitive advantages.

Proper use of the strengths of the company will allow you to attract a buyer to your product, which will give you the opportunity to increase your market share and win in the competition.

Step 4 Create a competitive strategy plan.

You have carefully studied your competitors and know all the strengths and weaknesses of each of them. Now you can protect your business by developing the perfect strategy (offensive or passive).

Step 5 Determine the competitive policy in the industry.

An industry is understood as a set of companies that use common types of raw materials, materials, manufacturing technologies. In addition, these firms are united by the common purpose of their products. In the country's economy, it is customary to distinguish the following sectors:

• Social sphere: medicine, education, art, science, defense.
• Non-production sphere: housing and communal services, transport, Internet, communications.
• Production: construction, trade, agriculture.

The competitiveness of an industry is determined by the ability of companies within an industry to compete for customers and to maintain (or increase) their market share. There is such a thing as industry competitive advantages. These are the advantages that are due to the specifics of the industry itself and depend on the demand for manufactured goods, on the level of infrastructure development within the industry, as well as on many other factors.

In principle, any company that exists in an industry already has certain industry advantages. It is possible to single out external competitive advantages (general high level of the country's competitiveness, state support for representatives of large and small businesses, high-quality and working regulatory and legal regulation of the economy) and internal (for example, the demand for products manufactured by the company).

Step 6 Conduct monitoring, control and subsequent adjustment.

Behind are many important steps necessary for successful competition: defining the target market, mapping strategic groups of competitors, analyzing their strengths and weaknesses, developing a competitive strategy. Now it is necessary to strictly control the execution of the developed strategy in order to make the necessary changes in time.

How to Determine Your Competitive Advantage

Step 1. List the Benefits

Ask yourself: how do customers benefit from your products? Studying all the characteristics of the product you produce, as well as the results of a survey of the customers themselves, will help you answer this question. You can ask them directly about what they like about your products and what they would like to improve or change.

When analyzing products, a marketing mix strategy can be useful to you. This is a set of measures that form the demand for a specific product at a certain cost in a given place with the help of promotion. In today's market conditions, there are many different options for this strategy. There are large companies that tailor their marketing mix strategy to fit their business. However, any marketing mix strategy has four integral parts, and therefore it is customary to call such a strategy a 4P strategy, where the first P is Product (manufactured product or assortment policy), the second P is Price (price or pricing policy), P - Place (place of sale), P - Promotion (promotion of products).

1. Product is a product or service produced by a firm.

The product is the main component of the marketing mix, as well as the element that combines the trademark, service, design. The most important thing for successful marketing is to guess with the product or service. How to do it? Through knowledge and understanding of market needs. With the right product, the needs of the market will be satisfied.

What other steps are needed at this stage?

• Work out the brand symbolism: come up with a recognizable logo, create an attractive style. These elements should reflect the uniqueness of the product.
• Evaluate the quality of a product or service, taking into account the perception of different consumers.
• Think over the design of the goods, develop the design of the packaging. The external attractiveness of the product is very important for its successful promotion in the market. Chocolates in a simple plastic bag or in a beautifully designed box will look very different in the eyes of the buyer.
• Create a product range.

2. Price is the monetary value of the product or service offered.

In the end, it is the price that determines your direct sales revenue and the profitability of your business. It is important to reasonably approach the choice of pricing policy. To do this, you need to take into account demand, production and sales costs, competitiveness, and expected profit.

An effective pricing policy will also take into account:

• market penetration strategy;
• pricing methods depending on different distribution channels (for example, providing discounts to wholesale buyers or bonuses to regular customers);
• retail price (the optimal ratio of the selling price and the desired profit);
• Availability of seasonal discounts, promotions, other promotional activities.

3. Place of sale involves various channels of implementation.

Distribution channels are the ways in which your product gets into the hands of the buyer. You can sell directly from the seller to the buyers, or you can use the services of intermediaries - sales agents, distributors, retailers or wholesalers.

At this stage, it is important to determine:

• methods of distribution of goods among the maximum possible range of consumers;
• distribution channels through which it is planned to sell the goods;
• markets for planned sales;
• distribution conditions, including various discounts and bonuses for dealers, requirements for product display and penalties;
• conditions and rules for the display of goods (merchandising);
• inventory management and logistics policy.

Among the ways to sell goods such as food, large shopping centers, chain stores, markets, and supermarkets are popular.

4. Promotion.

The promotion aims to stimulate sellers, as well as intermediaries and buyers. It consists in various actions and activities to attract the attention of buyers to products, to its advantages. It is important to show the benefits of purchasing this product. This is already the task of well-constructed advertising. Along with it, promotion methods are PR, direct marketing, Internet marketing. Customers are very fond of various promotions: lotteries, contests with prizes, discounts, gifts. Such measures often make it possible to promote and popularize the brand, and then help maintain the created image, and therefore feel more confident in the competitive environment.

Step 2. Prioritize all benefits

You can list in descending order from the most significant benefit to the least significant.

Step 3. Compare the list of benefits with those of competitors

This will help determine what changes can be made to promote more actively.

Step 4. Identify absolute competitive advantages

The absolute competitive advantage of a product is its uniqueness. It can be expressed both in one property of the product, and in their combination.

Absolute competitive advantage can be based on:

1. A special composition or secret component.
2. Original presentation: unusual shape, stylish design, unusual delivery method.
3. Highly qualified specialists.
4. Investments in new developments, technologies.

Step 5: Create False Competitive Advantage

There are very few companies around the world that produce a product that has no analogues. Most firms today work and develop in industries where there is a high level of competition. In conditions of tough competition, it is quite difficult to create real competitive benefits. As a rule, an alternative method is used: false competitive advantages are created.

Let's look at five ways:

After we have created false competitive advantages or found real ones, it is important to think about a good plan. It must necessarily contain two important points: actions to consolidate the relevance of the benefits and a set of measures aimed at further long-term development of competitive advantages.

Key Success Factors in Competitive Struggle

Key success factors (KSFs) are everything that ensures the success of an organization and contributes to increasing profits. The key success factors are:

• successful strategy;
• properties of goods that determine the choice of consumers of a particular product or a whole brand;
• resources and capabilities that ensure victory in the competition;
• professional experience, performance, measures aimed at achieving a sustainable competitive advantage.

For example, in the clothing industry, the key success factors will be the modern design and color of the models (acting as a stimulant for consumers), low production costs, which will allow you to set attractive prices for consumers and increase profits.

The role of KFU in the production of tin or aluminum containers will be performed by the location of the plants. Container manufacturing plants should be located close to consumers, since the costs of transporting empty containers are quite high.

In the process of developing a competitive strategy, it is important to pay special attention to identifying key success factors, taking into account the conditions (now and in the future) in which the industry develops, as well as taking into account the characteristics of competition in it.

If you make a mistake in assessing or identifying key success factors, then this can lead to choosing the wrong strategy. Therefore, it is so important to correctly determine the KFU of your company - it depends on how good a position you will take in the market and how much you can stay ahead of your competitors. The right strategy will leverage all the key success factors in your industry and help you excel in at least one of them. CSFs differ from industry to industry and may change over time. Company managers need to understand that too many CFUs will also not benefit the company: most likely, in a large list of CFCs there will be not only the main competitive advantages, but also secondary ones, and this may make it difficult to single out exactly those factors that can really bring the company success in competition for a long time.

Examples of competition in Russia and the world

• BMW vs Audi.

The aggressiveness and bellicose spirit of the Germans in the competitive struggle have not surprised anyone for a long time. The latest advertising campaigns of the Audi concern are the best confirmation of this. In the company's advertising, jokes and mockery of competitors constantly slip through, which are far from always justified. So, Audi has already managed to "play a joke" on brands such as Ferrari, Lexus and Mercedes. The list of special "favorites" of the concern also included the main competitor - BMW, which does not let offending jokes on the brakes and always adequately responds to the offender.

In this advertising battle of concerns, the winner is constantly changing. BMW was the instigator of this confrontation, congratulating its competitor on winning the "Machine of the Year - 2006" contest, renaming the name of the competition to "Machine of the World - 2006" in its congratulations.

Audi representatives did not keep themselves waiting long and released huge posters with the inscription: "Congratulations to BMW on winning the 2006 World Machine!" and captioned: "Respectfully yours, six-time winner of the Consecutive Le Mans 24 Hour (2000-2006)".

This defiant response did not stop the Germans: they quickly recorded and released the video "Friendly Competition" ("Friendly Competition"), in which they put Audi in first place in the ranking of the TOP 10 best cars of 2010 according to Car and Driver magazine. BMW in this list was given only the second place in the rating, as the company lost in three positions to its main competitors. The video unobtrusively mentions that in any competition there is a winner and a loser. It is not difficult to guess that the role of the latter is given to the concern BMW.

• Apple vs Microsoft.

In 2006, the advertising campaign "Get A Mac" from Apple was launched, within which 8 comic videos were shot. The content of the commercials cannot be called offensive - just like in any advertisement, the advantages of Apple were brought to the fore and this was presented against the background of a comparison that was unfavorable for Microsoft.

All videos were similar in plot: two people representing Apple and Microsoft participated in an exciting conversation for the viewer, during which the advantages of Apple became very obvious, and the representative of Microsoft constantly found himself in the shadow of his competitor and looked obviously weaker against the background of the advantages of his opponent.

• FedEx vs DHL vs UPS.

World famous transport companies - FedEx, DHL and UPS - also quite often resort to not very fair methods of competition. In their advertising, they often exaggerate their merits and deliberately belittle the quality of the work of other companies in the sector.

• Russia.

It is unlikely that we will soon be able to witness a real advertising battle between Russian brands. Russian legislation significantly limits the ways of competition, prohibiting any negative mention of competitors. Violation of this rule is fraught with huge fines. But even so, some companies take risks and violate this restriction. They do it consciously, counting on attracting additional attention to themselves and information noise around their name. As a rule, they pay the costs of possible penalties in advance to the budget of their companies.

2009 was remembered for the conflict between yogurt companies Wimm-Bill-Dann and Danone. The conflict erupted over Danone's slogan: "Don't hope for a miracle, drink Danone", which Wimm-Bill-Dann took as a direct hint to customers to refuse to buy Miracle yogurt. Representatives of Wimm-Bill-Dann even sent a complaint to the Federal Antimonopoly Service with a request to consider this case.

In 2004, there was a quarrel between the producers of crackers. The Sibirsky Bereg brand, which produces croutons under the name Kirieshki, came up with the following slogan for its advertising posters in the metro: “Good croutons will not be called crusts.” This slogan clearly hinted at a competitor's product called "Three Crusts". According to the Federal Antimonopoly Service, this advertisement directly pointed to the manufacturer of "Three crusts" - the company "Bridgetown Foods". The decision of the antimonopoly authorities was strict: the violator of the law had to give a refutation of his advertising campaign. We didn't have to wait long: subway passengers could soon watch posters announcing that real croutons could be called crusts.

Many still remember a similar conflict between the manufacturers of bouillon cubes Knorr and Maggi. The Knorr company came up with an advertising slogan “Real soup. No magic”, which only at first glance seems absolutely innocent. In fact, upon closer examination, the pun becomes obvious, which refers to one of the main competitors of the Knorr company - the manufacturer of Maggi bouillon cubes.

A method is a way to achieve some goal. There are price and non-price methods of competition.

With price competition the fight is based on price. Its beginning dates back to the time of free competition, when even homogeneous goods could be sold at a variety of prices. In price competition, the entrepreneur seeks to sell goods at lower prices than his rival. Price competition leads to the emergence of price wars, during which there is a gradual reduction in prices. A price war is based on a decrease in demand for goods, resulting in an excess supply. A price war is beneficial for buyers because they can buy a good at a lower price. Producers, on the contrary, may lose part of their profits, or even go bankrupt, due to lower prices. The price is the bait that allows you to attract the attention of the buyer and enables the seller, ultimately, to win certain positions in the market.

In modern conditions, when the markets are divided among a small number of large firms, and the cost of these enterprises is very high, large producers strive to keep prices at the achieved level as long as possible. These large (oligopolistic) firms are afraid to enter into an open price struggle with each other, as it can lead to the defeat of all competitors. There may or may not be winners.

This, of course, does not mean that the "price war" does not apply in the modern market. It exists, but not always in an explicit, open form. Today, the price war is being waged in the following forms:

· An open price war still takes place today, but it is carried out only when the given firm has a significant reserve for reducing the costs of production of goods compared to its rival. For a rival, in response to a price reduction by his competitor, will also reduce the price of his product. Price competition depletes the financial reserves of any firm and leads to a decrease in investment in renewal and expansion of production, which can ultimately lead to ruin and bankruptcy. Today, open price competition is used mainly by outsider firms in their struggle with large corporations, since they do not have the strength and capacity to compete with these corporations in the field of non-price competition.

Further, price methods of competition are also used to penetrate the market with new products. This is not neglected by large corporations where they do not have absolute advantages, as well as in the case when the problem of sales suddenly becomes aggravated.

Hidden price competition is often used nowadays.

• In this case, the company launches a new product with significantly improved consumer properties on the market. But the price of this commodity rises disproportionately little, by only about 15%.
• · Such a method of price competition as price discrimination is also widely used. It means selling the same product to different buyers at different prices. For example, it is practiced to set utility tariffs for institutions and organizations at lower rates than for individual consumers.

Price discrimination is carried out by firms with monopoly power. Monopolies maximize profits through price discrimination. Discriminatory prices can be used to expand production. Thus, the firm obtains economies of scale.

Today, in the conditions of scientific and technological revolution, price competition has been replaced by non-price methods, since the winner is the one who offers higher quality, as well as a wider range of products. In this regard, non-price competition methods are divided into two groups:

• o product competition and
• o competition on sales terms.

Product competition is associated with the desire to capture a part of the competitor's market by releasing products of a new range and quality while maintaining approximately the same price. In the USA, for example, 10,000 varieties of flour, more than 4,000 varieties of canned corn, and 50 varieties of mustard are sold simultaneously.

Competition on terms of sale consists in the use of numerous means to attract buyers to goods. This includes advertising, after-sales service, discounts for loyal customers, and so on. Sales of goods on credit (in installments) and leasing are special methods of non-price competition. Leasing is a long-term lease of machinery, equipment, vehicles, industrial facilities, providing for the possibility of their subsequent redemption by the tenant. In contrast to the classical lease, the relationship between the parties in leasing is based on the terms of the contract of sale. All of the listed methods of competition can be attributed to fair (fair) competition. These methods are associated with improving the quality of the product, reducing the cost of its production, which ultimately leads to a win for the consumer.

However, there is unfair (illegal) competition. It strengthens the position of the company, often by violating laws, rules of business communication. Methods of unfair competition include:

• Restriction of access to economic resources;
• setting of dumping prices;
• Violation of the terms of the contract, established standards, etc.
• The release of counterfeit goods that outwardly do not differ from the originals, but have inferior qualities and are usually much cheaper (up to 50%);
• Purchase of samples of goods for the purpose of copying them; similar imitation firms are located in Morocco, Hong Kong, Taiwan, Turkey, South Korea, Japan, Mexico, Brazil and a number of other countries.
• enticement of specialists who own industrial and financial secrets;
• industrial and economic espionage;
• · the use of aggressive actions: vilifying the product, refusing to provide materials and credit, poaching key personnel and other illegal methods.

Unfair competition and methods of combating it

People who decide to start their own business should be prepared for the fact that they will need not only a lot of strength and energy for their business to start making a profit, but also the presence of a fairly large number of such talents as: the ability to analyze and calculate the situation at a step forward, feel the demand of consumers, the ability to compete with other market participants and fight unfair competition. It is the last factor - unfair competition - that can negate all the positive aspects, and ruin in the bud any business that begins to develop. The ability to stop unfair competition against yourself is an extremely important quality, and today we will talk about various aspects of this process.

Unfair competition is any actions of economic entities (a group of persons) that are aimed at obtaining advantages in the implementation of entrepreneurial activities, are contrary to the Russian Federation, business practices, the requirements of integrity, reasonableness and fairness, and have caused or may cause losses to other economic entities - competitors, or have caused or may harm their business reputation. Of course, first of all, unfair competition should be suppressed at the legislative level - the main current legislative acts in this area are:

• Federal Law of July 26, 2006 N 135-FZ "On Protection of Competition"
• antimonopoly legislation based on the Constitution of the Russian Federation, the Civil Code of the Russian Federation, other federal laws aimed at protecting free competition
• civil law in the field of intellectual property

The specified Law "On Protection of Competition" establishes a ban on the commission of certain actions that entail a deterioration in the economic situation of specific economic entities, both for commercial organizations and for officials of various levels. Violation of the norms of the law, entails for the perpetrators the onset of a certain type of liability (criminal - Article 178 of the Criminal Code of the Russian Federation, administrative - Article 14.33 of the Code of Administrative Offenses, civil).

In accordance with Article 14 of the above Law “On Protection of Competition”, the following types of activities belong to unfair competition:

• Ш dissemination of false, inaccurate or distorted information that may cause losses to an economic entity or damage its business reputation
• Ш misrepresentation in relation to the nature, method and place of production, consumer properties, quality and quantity of goods or in relation to its producers
• Ø incorrect comparison by an economic entity of goods produced or sold by it with goods produced or sold by other economic entities
• Ш sale, exchange or other introduction into circulation of goods, if the results of intellectual activity and equivalent means of individualization of a legal entity, means of individualization of products, works, services were used illegally
• Ш illegal receipt, use, disclosure of information constituting a commercial, official or other secret protected by law
• III unfair competition associated with the acquisition and use of the exclusive right to means of individualization of a legal entity, means of individualization of products, works or services is not allowed.

In addition, the methods of unfair competition include dumping activities, economic espionage, product counterfeiting, various collusions pursuing various goals, etc. - the main thing is that the result of all these actions is causing significant harm (up to the complete cessation of activity) to a business competitor.

It should be rightly noted that unfair competition is not common in all of its types listed above. For example, flourishing campaigns do not strive to create an image of their products similar to that of a competitor. On the contrary, manufacturers strive to create such a look for their product, which will be different from others, so that consumers look for a product on the shelves that stands out, and does not become a gray mass. So, experiments were carried out among milk producers. Standard white and blue tones have been used year after year in the design of dairy products. But with the addition of new, brighter colors, milk is sold much better. This is an example of fair competition, which did not affect companies that did not try to modernize the packaging of their products.

A significant number of unfair competitive practices are committed through the use of inappropriate advertising.

• § Discredits individuals and legal entities;
• § Contains incorrect comparisons of the advertised product with the products of other individuals and legal entities, and also contains statements discrediting the honor, dignity or business reputation of competitors;
• § Misleads the consumer about the advertised product by imitating the general design, text, advertising formulas, images, music or sound effects used in the advertising of other products, or by violating the trust of others (fraud) or their lack of experience, knowledge;
• § Contains untrue information regarding the characteristics of the product, the possibility of its purchase, cost, delivery, warranty, medals, awards, research and testing results, service life, etc.

According to the Federal Law "On Advertising", an advertiser must provide reliable information. However, often in advertising nothing is reported about the shortcomings, flaws of the product, which are revealed after its purchase. For example, it was the media, especially television, that played a significant role in the success of financial pyramids like MMM.

The use of so-called "umbrella brands" has become widespread, especially in the field of advertising alcoholic products as a product whose advertising is associated with the greatest number of restrictions. Almost all companies producing or importing alcohol products under well-known trademarks have been involved in advertising products, sweepstakes or other events that have a similar or identical name to alcohol brands. Alcohol producers, not wanting the consumer to forget what their products look like, are forced to go to the trick and use "umbrella" brands.

The most commonly used method of compromising competitors, called "sprinkle mud." As a rule, in an information message or advertisement, specific names or information discrediting the product and the commodity producer are not named, which makes such actions difficult to punish. The information is presented in such a way that the relationship between the message itself and the compromised object is not clearly traced. It is understood that the logical connection must be carried out by the consumer.

Another modification of unscrupulous advertising is the method of cover by a reputable firm. Unscrupulous entrepreneurs in such cases use as a screen the name of a well-known company, on behalf of which this or that activity is allegedly carried out. As a result of such actions, both the authority of the company, whose name is used for unseemly purposes, and the deceived consumer are damaged. An example is an episode from modern Russian practice. Among the victims was a group of Russian artists who lost 30,000 US dollars as a result of dishonest actions, as well as the well-known American Express company, whose prestige suffered significantly. One of the victims, P. Tyulenev, said that he heard an advertisement for an American Express credit card on the radio; the advertisement was given by the Moscow representative office of the American company Priority Assets. The firm's office was located in a solid building of the Russian trade union; There was a beautiful golden sign on the building. The interior of the office was decorated in an American style, with expensive furniture and polite staff. New clients were impressed by the firm, depositing $30,000 in the firm's minimum deposit plus $750 for annual maintenance. However, using the credit card received from the company in Paris brought a discouraging result - it turned out that P. Tyulenev's card was cancelled. Upon returning to Moscow, P. Tyulenev found out that Priority Assets had disappeared along with the clients' money. The American Express company stated that it had nothing to do with Priority Assets and this incident.

What are the ways to combat unfair competition? Of course, they must be exclusively legal, legal. To protect your interests from attacks by unfair competitors, you can contact the Federal Antimonopoly Service of the Russian Federation (FAS RF), specifically, the expert council on the application of antimonopoly law in the field of unfair competition.

Just as in case of violation of any other rights of citizens, business entities can apply to the court for the protection of their interests (the case will be considered within the framework of arbitration proceedings).

Article 182 of the Criminal Code of the Russian Federation from January 1, 1997 introduced criminal liability for deliberately false advertising, that is, for advertising with the help of which the advertiser (advertising producer, advertising distributor) deliberately misleads the advertising consumer. In this case, two conditions must be met: the act must be committed out of selfish interest and significant damage must have been caused.

Naturally, in no case should one stoop to methods of struggle similar to the methods used by unscrupulous participants in the business environment. First, it would be a direct violation of the law. Secondly, sometimes “black PR” (if this type of unfair competition takes place) is useful to those against whom it is carried out - with a certain skill, even from bad advertising addressed to you, you can benefit. And, of course, the high quality of the goods and services offered can also significantly offset all the negative attacks from unscrupulous competitors.

Competition in the market of goods and services is a great way to stimulate business entities to improve their activities in all areas - but only if such competition is not unfair. Otherwise, at the first sign of the appearance of unfair competition, first of all, commercial organizations of a particular market segment should immediately use all legal methods to suppress such activities.

It is impossible not to note the fact that today unfair competition is most often collusion with local authorities, which is obvious, however, it is almost impossible to reveal it. Thus, local authorities often initiate endless inspections, imposition of bans and fines on those companies that are competitors. Exactly the same "contractual" underlying reason is now visible in tenders. Two enterprises deliberately agree on the conditions for its holding and write contracts for their firms. It is often difficult to spot this.

The issue of trade secrets is rather complicated. Very often this concept is exaggerated, and it refers to the prices that thousands of people see on the shelves near the goods. You can look at them, but you can’t rewrite them - supermarket employees strictly monitor this. Unfair competition entails administrative liability. Most often, fines are imposed on the guilty enterprise, the existing goods are confiscated, they are forced to compensate for the damage, to give a refutation of information that does not correspond to reality. Most often, they manage with preventive measures and stopping illegal actions.

Unfair competition is present in all countries of the world. However, the fight against it is carried out with varying success, so it is too early to talk about its eradication. Most often, as a result of unfair competition, the affected enterprise takes measures to modernize its activities, which is a fairly powerful incentive for further transformations.

unfair competition entrepreneurial dumping

Bibliography

• 1. Constitution of the Russian Federation
• 2. Convention for the Protection of Industrial Property (concluded in Paris on March 20, 1883)
• 3. Federal Law "On Protection of Competition" No. 135-FZ dated July 26, 2006
• 4. Porter M. Competition. M., 2011
• 5. Yarochkin V.I. Buzanova Ya.V. Business protection systems: protection against unfair competition. Moscow: Mira Foundation, 2012
• 6. www/businesspravo.ru

Work done in 2002

Ways to conduct competition - Coursework, section Economics, - 2002 - The law of competition and modern features of its manifestation. Efficiency of Competitive Markets Ways of Competitive Struggle. Competition Translated From Latin...

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