Competitive interactions are amongst the main things that a business should concentrate on since the marketplace is nowadays very competitive. The management should pay attention to the current issues since most of the time there are many businesses that are coming up yet selling the same products and services. They should work on the techniques and strategies that enable the company to gain competitive advantage.
Competitive gaming is one of the techniques being adopted by most marketers to be able to survive and continue making profits over the years. They come up with the idea considering that the competition changes with time. With this in mind, they are to know that they should not always be against their counterparts. They should come up with ways of coming together and work together to achieve the set goals. Changing the competitive roles is also important while coming with new and right marketing mix. It includes a good choice of the price, product, place and timing.
It involves development of skills and the winning mentality whereby each of the marketer aims at fighting their competitor. The main goal is to ensure that the opponents have no options left and thus lose in their marketing as it happens in the game. The company should also understand the characteristics and activities of all those in the market place to ensure that they come up with the strategy that works for all competitors.
The company should be keen to identify the new opportunities in the market. It helps them gain a competitive advantage as they are able to develop and enlarge their area of interest. Being friendly with the environment is necessary while allowing a good contact with their customers who give their views on what to do.
They do it with the mentality to win and with self-discipline as it plays a significant role in winning the competitive battle. It is because once the opponents realize the company’s weak point they are likely to build on it and thus drive the products out of the market. The company should thus be very attentive to ensure that it is aware of the activities in the marketplace.
Competitive gaming involves the zero-sum, positive-sum and negative-sum games, which are game theory terms. They are the outcomes of a situation, for instance, the marketplace situation, where they are the rewards from a competition.
Zero-sum situation is where the company wins at the expense of the other company. For instance, a company succeeds and gains advantage thus maintaining its position, while the other company is driven away. In the case of positive-sum, both parties get what they want depending on the circumstance, whereby the market could, for example, be enlarged. It is where the companies share the market equally and are able to continue selling their products and services. Finally, the negative-sum situation results in negative results, where both parties lose hence serious competition.
The companies uphold the ethics involved, which include anti-violence and being fair with what they do. The strategies adopted should also be acceptable to the society; for instance, coming with higher quality products using the right ingredients.
The main strategies used are those involving the prices. The company comes up with a way to competitively survive in the marketplace either by reducing the price hence the price war. Price war is where the company continually reduces the price and could also sell at a loss to decrease the competition. It is used to raise the revenue in the short run or increase the market share in the long run.
However, price wars can be prevented by good price management, understanding of the market and communication. The price wars benefit customers at the producers’ expense. The instance is the case of petrol price war, where Asda, Tesco, Sainsbury’s, and Morrisons in the UK cut prices at the pump, which led to huge savings to motorists and losses to the suppliers.
In summary, companies should work towards surviving in the competitive environment putting into consideration the ethics and set rules and regulations. They should also give back to the society as it also helps in their success.
The author of this article is Grace Wilson - a superior essay writer and editor.