Competition. (c1995)

Abstract

This research is mainly concerned with the description of the Lebanese Managers' dealings with competition in the market and with the assessment of their ability to face competition in light of the changing conditions in the market and economy. This research answered three questions: 1- Competition! How do Lebanese managers deal with it? 2- Are Lebanese managers aware of the importance of competitive analysis and competitive strategy formulation on the long run profitability and on the position of their companies in the market? 3- Are Lebanese managers capable to adjust and adapt their operations to the changing conditions in their industries and in the national and international economy as well? Managers (Sales, Marketing, or General) of twenty-seven companies in sixteen different industries were interviewed to get the response on the above questions. As to the first question, procedures and characteristics of 16 industries were presented. Of the most important common traits one can mention: 1- High interference of public relations in the companies’ operations and their effect on the success of the company. 2- Informal long term planning and competitors analysis conducted in most of these companies. 3- Use of differentiation as the main competitive strategy 4- Believing that competitors' monitoring is the core of the business success. 5- Local products disadvantage with respect to foreign ones in the perception of the buyers. Regarding the other two questions, the answers weren't encouraging. It was found that managers understand that competitors' analysis is important; however, this understanding was not within the five forces model of Porter. They do not coordinate between entry, substitutes, buyers, suppliers and competitors in order to formulate their strategies. Also, it was found that, with the current procedures followed by companies, it would be hard for them to succeed in the future with the occurring and expected changes. Recommendations were divided according to the parties involved in the game mainly the Government, the business unions and the fighting companies. The most important ones were proposed to the fighting companies. The most important recommendations were that the companies' owners and managers become aware of such analyses and their effectiveness for the success of their company adapts the most suitable ones that fit in their companies and train managers and employees. Add to this, that the company should build a real business basis for its success and do not depend on public relation as main key success factor. There are always a winner and a loser; the company that follows the best strategies and work according to predetermined plans has a higher chance to succeed.