The development of new products, such as healthy snacks, can raise a number of problems because it is necessary to define clearly the target market, potential customers and their buying power along with the position of competitors, their strengths and weaknesses. In this respect, the use of SWOT analysis can be very helpful because it allows defining strengths, weaknesses, opportunities and threats a company is facing or can face in the market. The analysis of the position of competitors helps to find out possible strategies and tools which can help a company to take the leading position in the market or, at least, to take a large share of the market.
In fact, a successful competition is, to a significant extent, dependent on the ability of a company to use weaknesses of its rivals. Ideally, a company should turn weaknesses of its competitors into its strengths. For instance, in case of snack industry, companies producing snacks pay little attention to the impact of snacks on human health (Newel, 2001). As a result, snacks often prove to be dangerous to human health because they contribute to the development of such health problems as obesity, while in a long-run perspective they can lead to the development of cardiovascular diseases and other health problems (Mohrman, 1998). In such a situation, a company launching the production of healthy snacks can lay emphasis on the positive impact of healthy snack on health of customers. As a result, healthy snack will outpace its rivals in the market because, instead of a negative impact on health, it will be useful. Therefore, the company producing healthy snacks can maximize its revenues and take the larger share of the snack market, whereas its competitors will steadily lose their positions.
The use of weaknesses of competitors may be an effective strategy but it is often necessary to use more effective strategies to take a better position in the market. In this respect, it is possible to dwell upon the use of new technologies which can put a company into an advantageous position compared to its rivals and improve its position in the market. For instance, today, many companies develop e-business and shift their sales online (Masterson and Picton, 2004). In this respect, the development of e-business can be a very effective step in terms of the improvement of the competitive position. In fact, the use of Internet and modern means of telecommunications make the development of e-business very prospective and attracts new customers, especially representatives of the younger generation. This example proves the effectiveness of the introduction of new technologies and the use of innovation-oriented strategy can be very helpful in the competitive struggle in the market.
Thus, in conclusion, it is important to lay emphasis on the fact that the development of an effective marketing strategy, it is necessary to take into consideration the position of competitors, their strengths and weaknesses. For this purpose, it is possible to use SWOT analysis. In addition, it is necessary to pay attention to the wide introduction of new trends in business and technologies.
Masterson, R. and D. Picton. (2004). Marketing: An Introduction. New York: McGraw Hill.
Mohrman, S. A. (1998). Tomorrow’s organization: Crafting winning capabilities in a dynamic world. San Francisco: Jossey-Bass.
Newel, D. (2001). Gaining a Holistic View of the Customer. LA: Printword.