Market Competition
The adoption of non-price competition strategies inevitably leads to an increase in corporate production and operational costs.

Market Competition Strategies

1. High-Quality Competition Strategy
   The high-quality competition strategy refers to enterprises using high quality as a competitive means, striving to establish a high-quality corporate image and aiming to surpass competitors through superior quality.

The primary challenge in implementing this strategy is understanding and shaping high quality. In the early 1990s, the marketing field introduced the new concept of "Total Quality Marketing":

1. High quality must focus on product performance, including functionality, durability, stability, reliability, economy, and safety.

2. High quality must be based on customer needs—the "high" in performance quality is relative and must be appropriate.

3. High quality must be reflected in all corporate activities and the entire value-creation process.

4. High quality requires continuous improvement through comparison.

As a competitive strategy, the advantages of high quality are evident: it is the foundation of all competitive means and crucial for building a strong corporate image.

2. Low-Cost Competition Strategy
   The low-cost competition strategy involves enterprises using cost efficiency as their primary competitive means, aiming to gain an advantage over industry peers in terms of cost.

The core of achieving a low-cost strategy lies in leveraging economies of scale, expanding production capacity, and reducing fixed costs per unit. In the process of scaling production, enterprises should:

1. Acquire raw materials and labor at lower prices.

2. Utilize advanced machinery to increase output, improve equipment utilization, labor efficiency, and product qualification rates.

3. Strengthen cost and overhead control.

By achieving a low-cost strategy, enterprises can sell products at lower prices than competitors to gain market share or match competitors' prices to earn higher profits. This strategy was popular in the 1970s but loses relevance once all industry players minimize costs.

3. Differentiation Advantage Strategy
   Enterprises use unique features as their main competitive means, aiming to gain an edge over competitors through differentiation. Differences may include product performance, quality, design, branding, model, grade, origin, production technology, materials, pre- and post-sales service, and distribution channels.

This strategy emerged when mass production of homogeneous products led to sales difficulties. In such cases, enterprises must convert their strengths in technology, innovation, resources, and operational experience into unique product, service, and marketing advantages to reduce direct competition and dominate a niche.

Within the industry, customers may not focus on pricing for differentiated products, allowing premium pricing and higher profits. Externally, differentiation can deter substitutes and new entrants while strengthening bargaining power with buyers and suppliers.

However, this strategy may require higher costs. If most customers are unwilling to pay a premium, increasing market share becomes challenging.

4. Focus Advantage Strategy
   The focus advantage strategy requires enterprises to concentrate on serving one or a few consumer segments, gaining a competitive edge in a niche market.

"Focus" means the enterprise does not target the entire market but specializes in serving a specific consumer group (a niche market).

Focusing on a niche requires minimal investment, making it viable for small and medium-sized enterprises (SMEs) to survive and thrive in intense competition. This strategy combines the benefits of differentiation (meeting special needs) with low-cost operations in a narrow market.