Threat of occurrence of products-substitutes

· Presence of products-substitutes, propensity of consumers to which can increase owing to price change (elasticity of demand).

· Propensity of consumers to purchase of products-substitutes

· Comparison of the price and qualities of products-substitutes

· Switching cost on a product-substitute for the consumer

· Level of perception of differentiation of a product

Threat of occurrence of new players

The markets, making high profit, involve new players. As a result there are the numerous new players essentially reducing profit. If not to undertake actions on blocking or difficulty of an input of new players, the profit will consistently decrease with growth of level of a competition (the perfect competition see).

· Presence of barriers of an input (the licence, patents, copyrights, etc.)

· Necessity of expenses for differentiation of a product

· Brand cost

· Cost of switching or transient costs

· Starting expenses for new players

· Access to distribution

· Advantages in the cost price

· Advantages in position on a curve of acquisition of knowledge

· Expected reciprocal actions of old players

· Reaction of the government and-or other regulators of the market

The market power of suppliers

Suppliers of raw materials, components, labour and services can influence company activity. Suppliers can refuse to work with the company or, for example, to establish excessively high prices for unique resources.

· Comparison of cost of switching of suppliers and cost of switching of the company

· Degree of differentiation of raw materials and initial materials

· Presence of substitutes of suppliers

· Comparison of concentration of suppliers and concentration of the company

· Solidarity of a labour (for example activity of trade unions)

· Integration threat forward suppliers can affect possibility of the company of integration back

· Comparison of cost of raw materials and initial materials and sale price of a product of the company

The Market power of consumers

Ability of consumers to influence the company, and also reaction of sensitivity of the consumer to price change.

· Concentration of consumers to level of concentration of the company

· Degree of dependence on existing channels of distribution

· Quantity of consumers

· Comparison of cost of switching of the consumer and cost of switching of the company

· Availability of the information to consumers

· Possibility of vertical integration (construction of holdings with vertical integration)

· Availability of existing products-substitutes

· Price sensitivity of consumers

· Distinctive advantages of products the companies (uniqueness)

Level of competitive struggle

For the majority of branches, it is the defining factor influencing level of a competition in branch. Sometimes players compete aggressively, sometimes there is not price competition in innovations, marketing, business models etc.

· Quantity of competitors

· Level of growth of the market

· Criteria of saturation of the market

· Input barriers in branch

· Barriers of an exit from branch

· Distinctive lines of competitors

· Level of expenses of competitors on advertising

· Ambitions of the first persons and shareholders of competitors

General characteristics of Branding.

A brand is a "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers." Branding began as a way to tell one person's cattle from another by means of a distinctive symbol burned into the animal's skin with a hot iron stamp, and was subsequently used in business, marketing and advertising. A modern example of a brand is Coca Cola which belongs to the Coca-Cola Company.

Marque or make are often used to denote a brand of motor vehicle, which may be distinguished from a car model. A concept brand is a brand that is associated with an abstract concept, like breast cancer awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is a brand associated with a commodity. Got milk? is an example of a commodity brand.

Promotion.

Promotion is one of the market mix elements, and a term used frequently in marketing. The specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, however there are three basic objectives of promotion. These are:

1. To present information to consumers as well as others.

2. To increase demand.

3. To differentiate a product.

There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.

The term "promotion" is usually an "in" expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common. An example of a fully integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi Stuff. The UK version of My Coke Rewards is Coke Zone.

Diversification strategy.

Strategy of diversification assumes working out of new kinds of production simultaneously with development of the new markets. Thus the goods can be new to all enterprises working in the target market, or only for the given enterprise. Such strategy provides profit, stability and stability of firm in the long-term future. It is the most risky and expensive.

To be engaged by diversification the enterprises compels a number of the reasons among which one of the main things are aspiration to reduce or distribute risk («not all eggs in one basket»), and also aspiration to leave with stagnate the markets and to receive financial benefits from work in new areas. Last two factors – the stagnating market and aspiration to master new spheres of activity - are the main reasons диверсификации. Naturally, diversification assumes revealing of that kind of activity (production) in which it is possible to realize most effectively competitive advantages of the enterprise.

At the analysis it is necessary to consider, that diversification has positive and negative sides. The main danger for diversification is connected with dispersion of forces, and also with management problems of diversification enterprises. Actually, the problem of controllability of the large companies also has led to development of methods of portfolio analysis. Practice of the western management testifies, that probability of success of separate strategy of growth not similar owing to reduction synergetic effect: for the old goods in the old market this effect makes 50 %; for the new goods in the old market - 33; for the old goods in the new market - 20; for the new goods in the new market - 5%5.

By analogy to other matrixes of portfolio analysis advantages of Ansoph’s matrix are simplicity and presentation of representation of possible strategy, and lacks - unilateral orientation to growth, the account only two, though also the major, factors (goods-market). It is necessary to notice, that the specified strategy is present at the list of the specified strategy of firm Arthur D. Little.