GENERIC COMPETITIVE STRATEGIES

Abstract

One of the main issues in competitive strategy is the company's relative position in the economic segment. Positioning determines whether a company's profitability will be above or below the average of the corresponding economic segment. A company that is capable of doing well positions can achieve high rates of return even if the structure of the economic segment is unfavorable, and the average profitability in it is modest. The most important condition for long-term above-average results is sustainable competitiveness an advantage. Although compared to its competitors, the company may have countless advantages and disadvantages, there are two basic types of competitive advantages it can have: low costs and differentiation. The significance of any strengths or weaknesses of the company is ultimately a consequence of their impact on relative costs or differentiation. Cost advantage and differentiation, on the other hand, arise from the structure of the economy segment. The subject of research in this paper is the impact of a defined strategic commitment on implementation of the company's set goals, as well as the reflection of the chosen strategy on the further future of the business. The goal of the research is to find the basic prerequisites for successful application in generics competitive strategies, as well as parameters for qualitative and quantitative measures of performance. Also, the goal is to examine whether the companies operating in the field of railway transport in BiH used generic competitive strategies and explored the key prerequisites for a successful one strategy implementation. The choice of the rail transport market stems from the fact that there is potential to gain a competitive advantage over other transport markets in BiH.