Rationale for Competitive Strategies Choice in Service Industry in New Economic Reality (by Example of Persona Lab)

A properly designed competitive strategy is flexible enough to take into account different situations and can be quickly changed in case of an unforeseen crisis, as in the case of COVID-19, according to external circumstances. Having a strategy will guide managers in a situation of uncertainty and help them avoid losing control over their subordinates, as well as many other problems that may arise. The topic of the project is particularly relevant for the network organization Persona Lab, as the company does not have a development strategy, and therefore a competitive strategy. Managers of beauty salons are focused on the general directions of development of the organization and on their work experience, so that some salons develop successfully, but others lag behind in financial indicators. The most actual competitive strategy in a situation of crisis as actions of the company should be united both in the period of crisis, and, the most important, in the period of an exit from crisis and the beginning of work with clients after the long forced "holiday". The objects of research are salons of the Persona network. Subject: methods and approaches to developing a competitive strategy of the company in the conditions of crisis and new economic reality after the forced closure of salons due to quarantine. Objective: to consider and define the features of competitive strategy formation in the new economic reality. The following tasks are being carried out to achieve the goal: 1. identify the distinctive features of the network business and the specifics of the organization; 2. to identify the characteristics of the beauty industry, to study the main trends specific to the sphere; 3. to study and systematize ways to analyze the organization; 4. to form the methodology of company research; 5. to analyze the organization, determine the key problems of the organization, study the stakeholders of the organization, the degree and nature of influence on the organization, get the most complete information about the competitive position of the company at the moment and its opportunities, as well as obtain data on competitors; 6. to determine the peculiarities of competitive strategy formation in the conditions of new economic reality 7. to form a competitive strategy for beauty salons based on all received data. Methods of research: Porter's 5 Forces Analysis, PEST analysis, Mendelo model stakeholder identification and analysis, CFC competitive advantage evaluation, SWOT analysis and SPACE matrix. Information base of research: accounting and economic reporting of the salons, information obtained from analytical activities, the Internet, the official website of the company. The first chapter will present the theoretical foundations of competitive strategy formation, introduce key concepts, define the main differences between the network business and the butie-sphere, the peculiarities of management and development of small businesses, and will describe the main methods for analysis that will be used in the study. The second chapter will describe the market the organization operates in, the company itself and the changes that occurred during the crisis. Analysis is then carried out on the basis of the methods indicated in chapter one, their results and general conclusions. The third chapter will develop a competitive strategy for the Persona Lab beauty salon network, taking into account all the specifics and based on the analysis of the organization. Peculiarities of strategy formation in a certain market and economic situation will be formed, taking into account the network form of business organization.