For MZT Pumpi, understanding the structure of competition within a specified market is a crucial prerequisite for development of strategy for sustainable competitive advantage. In order to better address the needs of our customers on separate markets, MZT Pumpi applies different competitive strategies for different markets.
For the Ex-Yugoslav markets, it uses combination of Differentiation and Focusing strategy. The main argument of Market Focus is because the needs of a narrow segment can be better serviced by focusing entirely on them.
Market focus addresses how MZT Pumpi seeks to understand the customer’s requirements, needs and expectations by following the latest trends within the pump industry.This strategy provides opportunity to focus on a narrow segment on a well known market for well known clients.
Competitiveness is impossible without market focus!
After focusing on specific segment, MZT Pumpi uses Differentiation strategy by development of product or service that offers unique attributes compared to the competition. Our company is already differentiated on the Former Yugoslav markets by having a strong brand name and reputation for our products. But, differentiation which is based on production consideration alone may not create value in the eyes of clients and that is why we provide complete service package providing top quality, high-delivery speed and customization. In order this strategy to be sustainable, our company constantly invests in new product development and tries to anticipate the future trends within the pump industry.
For the markets in Western Europe, where our company is still not present and where we intent to become more present mainly through intermediaries, we intend to apply the strategy of Cost Leadership for penetrating these markets for the first time. By offering products for competitive prices when entering specific market, we could acquire competitive advantage and gain market share for a shorter period of time. The main argument for applying this strategy is the difference in the living standard and price level, efficient manufacturing with short delivery time as well as high level of expertise in manufacturing process engineering.