Competitiveness of firms and their competitive advantages. Types of competitive strategies - Lecture notes, section Economics, World economy: main features, patterns, development trends In the context of increasing competitive struggle in world markets, the success of companies...
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Topic: " Competitiveness of the organization and the main factors of its competitive advantage"
Introduction.
Ultimate Goal for every company - victory in competition. The victory is not a one-time, not accidental, but a logical result of the company’s constant and competent efforts. Whether it is achieved or not depends on the competitiveness of the company's goods and services, that is, on how much better they are compared to analogues - products and services of other companies. What is the essence of this category of a market economy and why, despite all the efforts of any company, cannot be strictly guaranteed?
Usually, the competitiveness of a product is understood as a certain relative integral characteristic that reflects its differences from a competing product and, accordingly, determines its attractiveness in the eyes of the consumer. But the whole problem lies in correctly defining the content of this characteristic. All misconceptions begin here.
Most beginners focus on the parameters of a product and then, to assess competitiveness, compare some integral characteristics of such an assessment for different competing products. Often this assessment simply covers quality indicators, and then (not infrequently) the assessment of competitiveness is replaced by a comparative assessment of the quality of competing analogues. The practice of the world market clearly proves the incorrectness of this approach. Moreover, studies of many product markets clearly show that the final purchase decision is only one third related to product quality indicators. What about the other two thirds? They are associated with significant and quite significant conditions for the consumer for the purchase and future use of the product.
To better understand the essence of the problem, let us highlight several important consequences of this position.
1. Competitiveness includes three main components. One of them is strictly related to the product as such and largely comes down to quality. The other is connected both with the economics of creating sales and service of a product, and with the economic opportunities and limitations of the consumer. Finally, the third reflects everything that may be pleasant or unpleasant to the consumer as a buyer, as a person, as a member of a particular social group, etc.
2. The buyer is the main appraiser of the goods. And this leads to a very important truth in market conditions: all elements of a product’s competitiveness must be so obvious to a potential buyer that there cannot be the slightest doubt or other interpretation regarding any of them. When we form a “competitiveness complex,” in advertising it is very important to take into account the characteristics of psychological education and the intellectual level of consumers, and many other personal factors. An interesting fact: almost all foreign advertising manuals highlight material related to advertising in an illiterate or intellectually undeveloped audience.
3. As you know, each market is characterized by its own buyer. Therefore, the idea of some kind of absolute competitiveness not related to a specific market is initially incorrect.
What does practice say? Once a certain general view of competitiveness has been formed, let’s try to look at a practical example. Perhaps it will somehow enrich the general definition, and together with everything that we already know, it will allow us to form a fairly complete picture of the subject under discussion.
In the fierce struggle between American and Japanese manufacturers in almost all markets of advanced technologies, the position of the Japanese so far looks preferable. Due to what? The almost unanimous answer in the 70s was: price and quality. But already a decade ago, the level of sales, advertising and service culture of Japanese companies began to attract increasing attention from marketers around the world. And today they are already saying that the “philosophy of quality” characteristic of the Japanese is becoming only an integral part of their own “philosophy of service” that is now emerging. All this more or less coincides with the main positions noted earlier. But here’s what’s interesting: a number of American researchers and businessmen have long and persistently said that Japan, through skillful propaganda, quickly formed an opinion about the highest quality of its goods, rather than actually showing it in practice.
Even allowing for a significant (and very!) amount of exaggeration and wounded pride here, we note that in general the “country’s image” gives a noticeable increase in the competitiveness of its goods.
The market economy, and after it its scientists, long ago and well understood that trying to schematically express the competitiveness of a product is the same as trying to show with a diagram all the complexity and all the subtleties of the market process. For them, competitiveness has therefore become simply a convenient term that concentrates attention and thought, behind which all the variety of strategic and tactical techniques of management in general and marketing in particular is built. Competitiveness is not an indicator whose level can be calculated for yourself and for a competitor, and then win. First of all, this is a philosophy of working in market conditions, focusing on:
understanding consumer needs and their development trends;
knowledge of the behavior and capabilities of competitors;
knowledge of the state and trends of market development;
knowledge of the environment and its trends;
the ability to create such a product and bring it to the consumer,
so that the consumer prefers it to a competitor's product.
Competitiveness of the organization
The global factor determining the successful formation of a market space is the flexible use of competition laws. Real competitive environment is a complex, multifactorial and dynamically changing system, therefore it is necessary to constantly improve methods and methods for assessing the competitiveness of organizations, determining their potential for successful development in the future. The term “competition” was not used in the Russian economy until the 90s of the last century, since there was no need for it. Only Russia's transition to a market economy led to the emergence of actual competition in almost all areas of activity. Private enterprises, represented by their owners, began to care about the competitiveness of their goods and services.
Initially, the word “competition” arose from the Latin concurrere, which translated means “to collide.” S.I. Ozhegov interprets competition as rivalry, the struggle to achieve greater benefits and advantages. Today there are a large number of terms for this concept, mostly foreign (the most common definitions of the term “competition” are given in the table).
The presence of real market struggle in the market of goods or services in which the enterprise operates requires it to ensure a certain competitiveness. Otherwise, he faces being pushed out of these markets, bankruptcy and death. Competitiveness, in essence, is the ability of an enterprise to withstand competition, to withstand competitors producing similar products (the most common definitions of the term “competitiveness of an organization” are given in the table below). Thus, in the Nizhny Novgorod region, only every tenth of the established enterprises celebrates its fifth anniversary. The rest die, unable to withstand the competition.
Following their definitions, we can talk about the competitiveness of a particular product (service), meaning by this the degree of attractiveness of this product for the consumer making an actual purchase. In other words, competitiveness can be defined as a set of consumer properties of a product, which determines its difference from other similar products in terms of the degree and level of satisfaction of customer needs and the costs of its acquisition and operation. Competitiveness can also be defined as the ability of a product (or object) to generate a return on invested capital that is not lower than a given one or as an excess over the average profit in the relevant field of business.
Competitiveness is a characteristic of a product that reflects its difference from a similar competitive product both in terms of the degree of compliance with a specific need and in terms of the costs of satisfying it. Many companies went bankrupt, unable to provide the quality required by consumers at acceptable costs. Quality is expensive.
Consequently, product competitiveness is nothing more than a manifestation of product quality in market conditions .
It is determined by the ability of a product to be sold on a specific market, in the maximum possible volume and without loss to the manufacturer. If a product or service is competitive in a particular market, it sells more than its analogues, and at the same time the seller operates at a profit that ensures its further development.
Linking a product or service to a specific market is mandatory. For example, let’s compare sales of passenger cars on the Russian market. AvtoVAZ annually sells about 700 thousand passenger cars, and at the same time, the largest foreign companies in Russia sell from a few to two to three tens of thousands of cars per year. The products of these companies on the Western market cannot be called uncompetitive, but on the Russian market they are clearly losing the competition to AvtoVAZ (in terms of price). In relation to the markets of Germany, France or Turkey, the ratio of sales volumes will not be in favor of VAZ.
Research has shown that the competitiveness of enterprises is significantly influenced by the scientific and technical level and the degree of perfection of production technology, the use of the latest inventions and discoveries, the introduction of modern production automation tools and other factors of the macroenvironment, microenvironment and internal environment of the company. Its assessment can only be carried out among enterprises belonging to the same industry or producing the same goods or services. This largely depends on how the enterprise can adapt to changing market conditions. Unlike the competitiveness of a product, this quality of an enterprise cannot be achieved in a short period of time. This can only be achieved through long-term and flawless work in the market. From this we can conclude that an enterprise operating more long period in the market, has great competitive advantages over an enterprise just entering a given market or operating for a short period of time.
The financial well-being of an organization follows the competitiveness of its products, like a shadow follows a person. Practice shows that this goal is most often achieved by enterprises with higher competitive potential. The competitive potential of an enterprise means both the real and potential ability of a company to develop, manufacture, sell and service competitive products in specific market segments. That is, goods that are superior in quality and price parameters to their analogues and are in higher demand among consumers. Thus, the well-known Nizhny Novgorod company RIDA was able to win its “place in the sun” solely due to the high quality of its armored vehicles, which reflects the high human and technical potential of the company.
Thus, the high competitiveness of an enterprise is determined by the presence of the following three signs: 1) consumers are satisfied and ready to buy the products of this organization again (consumers return, but the goods do not);
2) the company, shareholders and partners have no claims against the organization;
3) employees are proud of their participation in the activities of the organization, and outsiders consider it an honor to work in this company.
Analysis of the competitive position of an enterprise in the market involves identifying its strengths and weaknesses, as well as those factors that, to one degree or another, affect the attitude of buyers towards the enterprise and, as a result, changes in its share of sales in a particular product market. Faced with international and domestic competition, according to French economists A. Ollivier, A. Dayan and R. Ourse, it must ensure a level of competitiveness in eight factors. This:
- the concept of goods and services on which the activity of the enterprise is based;
- quality, expressed in the product’s compliance with the high level of market leader products and identified through surveys and comparative tests;
- price of the product with a possible markup;
- finance - both own and borrowed;
- trade - from the point of view of commercial methods and means of activity;
- after-sales service, providing the company with a regular clientele;
- foreign trade enterprise, allowing him to positively manage relations with authorities, the press and public opinion;
- pre-sales preparation, which demonstrates his ability not only to anticipate the needs of future consumers, but also to convince them of the exceptional capabilities of the enterprise to satisfy these needs.
Assessing the capabilities of an enterprise based on these eight factors allows us to construct a hypothetical “competitiveness polygon” (Fig. 2.1.1).
Rice. 1. "Polygon of competitiveness"
If you approach the assessment of the competitive capabilities of a number of companies in the same way, superimposing schemes on top of each other, then, according to the authors, you can see the strengths and weaknesses of one enterprise in relation to another (in Fig. 1 - enterprises A and B).
Domestic economists express a very similar point of view. In particular, the “key factors of market success” include: “the financial position of the enterprise, the development of the base for its own R&D and the level of expenses for them, the presence of advanced technology, the provision of highly qualified personnel, the ability to product (and price) maneuvering, the presence of a sales network and experienced marketing personnel, the state of technical service, opportunities for lending for their exports (including with the help government organizations), the effectiveness of advertising and the public relations system, the availability of information, the creditworthiness of the main buyers.”
The analysis of the selected factors, according to the authors, is to identify strengths and weaknesses both in one’s own activities and in the work of competitors, which can allow, on the one hand, to avoid the most intense forms of competition, and on the other, to use one’s advantages and weaknesses competitor.
A number of other authors, analyzing the factors of enterprise competitiveness, propose other principles of systematization. In particular, it is proposed to classify them depending on the intended purpose of the created product of labor.
For enterprises creating consumer goods, there are:
a: commercial conditions - the company’s ability to provide customers with consumer or commercial loans, discounts from the list price, discounts when returning goods previously purchased from the company that used its economic resource, the possibility of concluding commodity exchange (barter) transactions;
b: organization of a sales network - location of a chain of stores, supermarkets, their availability to a wide range of customers, demonstration of products in action in the salons and showrooms of the company or at its resellers, at exhibitions and fairs, the effectiveness of ongoing advertising campaigns, impact through public relations;
c: organization of technical maintenance of products - the volume of services provided, terms of warranty repairs, cost of post-warranty service, etc.;
d: consumer perception of the company, its authority and reputation, its range of products, service, the impact of the company’s trademark on attracting customers’ attention to its products;
d: the impact of market trends on the company’s position in the market.
The competitiveness of enterprises processing raw materials is influenced, first of all, by factors such as the amount of profit received from processing raw materials, which depends on the quality and cost characteristics of the raw materials, as well as the cost of other production resources - labor, fixed capital, consumed fuel and energy; market conditions for the final product of raw material processing, price dynamics as a result of fluctuations in supply and demand, costs of transporting raw materials to the place of processing or consumption; forms of commercial and other relations between producers and consumers.
The level of competitiveness of commodity producing firms is largely determined by what goods they trade and where and how these goods are consumed.
But, perhaps, the most fundamental study of the factors of competitiveness of enterprises was given in the works of M. Porter. At the same time, he understands competitiveness factors as one of the four main determinants of competitive advantage, along with the strategy of firms, their structure and competitors, demand conditions and the presence of related or related industries and enterprises competitive in the world market.
All these four determinants constitute, according to M. Porter, a system (diamond), “the components of which are mutually reinforcing. Each determinant influences all the others. ...In addition, advantages in one determinant can create or enhance advantages in others” (Figure 2.1.2).
To gain and maintain advantages in knowledge-intensive industries that form the basis of any developed economy, it is necessary to have advantages in all components of the system.
Competitive advantage based on one or two determinants is also possible. But only in industries with a strong dependence on natural resources or industries that do not use related technologies and highly skilled labor. However, such an advantage is usually short-lived and is lost with the entry of large companies and firms into this market.
Therefore, advantages for each individual system component are not a prerequisite for competitive advantage in the industry. Only the interaction of advantages across all determinants provides a synergistic (self-reinforcing) effect of the system.
From the approach outlined above, it is clearly visible how important the role of the correct identification and use of competitiveness factors is.
M. Porter directly connects competitiveness factors with production factors. He presents all the factors that determine the competitive advantages of enterprises and firms in the industry in the form of several large groups:
1. Human Resources - quantity, qualifications and cost of labor.
2. Physical resources - quantity, quality, accessibility and cost of sites, water, minerals, forest resources, hydroelectric power sources, fishing grounds; climatic conditions And geographical location country of origin of the enterprise.
3. Knowledge resource - the sum of scientific, technical and market information that affects the competitiveness of goods and services and is concentrated in academic universities, state industry research institutes, private research laboratories, market research data banks and other sources.
4. Monetary resources - the amount and cost of capital that can be used to finance industry and an individual enterprise. Naturally, capital is heterogeneous. It comes in forms such as unsecured debt, secured debt, shares, venture capital, speculative securities, etc. Each of these forms has its own operating conditions. And taking into account the different conditions of their movement in different countries, they will largely determine the specifics economic activity subjects in different countries.
5. Infrastructure - type, quality of existing infrastructure and fees for its use, affecting the nature of competition. This includes transport system countries, communication system, postal services, transfer of payments and funds from bank to bank within and outside the country, healthcare and cultural systems, housing stock and its attractiveness from the point of view of living and working.
Industry specific features, of course, impose significant differences on the composition and content of the factors used.
M. Porter suggests dividing all factors influencing the competitiveness of an enterprise into several types.
Firstly, into basic and developed ones. The main factors are natural resources, climatic conditions, geographical location of the country, unskilled and semi-skilled labor force, debit capital.
Developed factors - modern information exchange infrastructure, highly qualified personnel (specialists with higher education, computer and PC specialists) and university research departments involved in complex, high-tech disciplines.
The division of factors into basic and developed is very arbitrary. The main factors exist objectively or their creation requires minor public and private investments. As a rule, the advantage they create is not sustainable, and the profit from use is low. They are of particular importance for extractive industries, industries related to agriculture and forestry, and industries that rely primarily on standardized technology and low-skilled labor.
Developed factors are much more important for competitiveness, as factors are more high order. Their development requires significant, often long-term investments of capital and human resources. In addition, a necessary condition for the very creation of developed factors is the use of highly qualified personnel and high technologies.
The peculiarity of developed factors is that, as a rule, they are difficult to purchase on the world market. At the same time, they are an indispensable condition for the innovative activity of an enterprise. The success of enterprises in many countries of the world is directly related to a solid scientific base and the presence of highly qualified specialists.
Developed factors are often built on the basis of basic factors. That is, the main factors, while not being a reliable source of competitive advantage, at the same time must be of sufficient quality to allow the creation of related developed factors on their basis.
Another principle for dividing factors is the degree of their specialization. In accordance with this, all factors are divided into general and specialized.
General factors, which M. Porter includes the highway system, debit capital, personnel with higher education, can be used in wide range industries.
Specialized factors are highly specialized personnel, specific infrastructure, databases in certain branches of knowledge, and other factors used in one or a limited number of industries. An example now is the specialized software, rather than standard general-purpose software packages.
It should be noted that these factors are associated with the use of such a mobile type of capital as venture capital.
Common factors tend to provide limited competitive advantages. They are available in a significant number of countries.
Specialized factors, which are sometimes based on general ones, form a more solid, long-term basis for ensuring competitiveness. Financing the creation of these factors is more targeted and often riskier, which, however, does not mean that the state will refuse to participate in such financing.
From the above, we can conclude that it is most possible to increase the competitiveness of an enterprise if it has developed and specialized factors. The level of competitive advantage and the possibility of strengthening it depend on their availability and quality.
A competitive advantage based on a combination of basic and general factors is an advantage of a lower order (extensive type), which is short-lived and unstable.
It should be noted that the criteria for classifying factors as developed or specialized are constantly becoming more stringent. This is the result of the influence of NTP. What is considered today at the level of a developed factor (say, scientific knowledge), tomorrow will be classified as basic. The same applies to the degree of specialization (for example, the same scientific knowledge). There is also an upward trend here. “It also applies to human resources, infrastructure and even sources of capital.” Therefore, the factor resource as the basis of long-term competitive advantage depreciates if it is not constantly improved and made more specialized.
And finally, another principle of classification is the division of competitiveness factors into natural (that is, acquired by themselves: natural resources, geographical location) and artificially created. It is clear that the latter are factors of a higher order, ensuring higher and more stable competitiveness.
The creation of factors is a process of accumulation: each generation inherits factors inherited from the previous generation and creates its own, adding to the previous ones. It is this point of view that is held not only by M. Porter, but also by other Western economists, such as B. Scott, J. Lodge, J. Bauer, J. Zusman, L. Tyson.
The following should be noted important feature. It is indicated above how great the role of the existence of specialized and developed factors is. As a rule, they are developed by firms and enterprises themselves, as they know best what they need right now to ensure a competitive advantage. Government funding for the creation of factors focuses on basic and general factors, as creating the basis for factors of a higher order.
World experience shows that government measures to improve specialized and developed factors, as a rule, fail due to the lack of dynamism of the state system itself.
Of course, it is impossible to create and improve all types of factors at once. What factors are created, improved and effectively used depends on the nature of demand in the market, the availability and capabilities of related and related enterprises, the nature of competition and the goals of the enterprise itself.
Of course, each of the classifications presented above has the right to exist. Its use will depend on the purpose of the research being conducted and on the principle underlying it.
Based on the concept of enterprise competitiveness we considered above and a critical analysis of the presented classifications and understanding of competitiveness factors as those phenomena and processes of production and economic activity of an enterprise and the socio-economic life of society that cause a change in the absolute and relative value of the costs of production and sales of products, and in As a result of a change in the level of competitiveness of the enterprise itself, it is proposed that the entire set of factors that determine the consumer’s attitude towards the business entity itself and its products or services be divided into internal and external in relation to it.
In this case, external factors should be understood, firstly, as measures of state influence of an economic nature (depreciation policy, tax, financial and credit policy, including various state and interstate grants and subsidies; customs policy and related import duties; state insurance system ; participation in the international division of labor, development and financing of national programs to ensure the competitiveness of the enterprise), and of an administrative nature (development, improvement and implementation of legislative acts that promote the development of market relations, demonopolization of the economy; state system of standardization and certification of products and systems for their creation; state supervision and control over compliance with mandatory standards, rules for mandatory certification of products and systems, metrological control; legal protection of consumer interests). That is, everything that determines the formal rules of activity of a business entity in a given national or global market.
Secondly, the factors of competitiveness are the main characteristics of the market itself for the activity of a given enterprise; its type and capacity; presence and capabilities of competitors; provision, composition and structure of labor resources.
To the third group external factors should include the activities of public and non-state institutions. On the one hand, through various organizations for the protection of consumer rights, they act as a constraint on the growth of the competitiveness of an enterprise. On the other hand, through non-state investment institutions they contribute to the growth of the competitiveness of the enterprise, providing investments in the most promising areas of activity.
And finally, the competitiveness factor is, of course, the activity political parties, movements, blocs, etc., shaping the socio-political situation in the country. We have already indicated above how important this factor is for the economy of any country and how carefully foreign investors and international monetary organizations approach its assessment.
In this understanding, the set of factors presented above determines the formal and informal “rules of the game” in the market, determines the external environment in which the enterprise will operate, and those points that it must take into account when developing its development strategy.
The internal factors that ensure the competitiveness of a given enterprise include the potential of marketing services, scientific and technical, production and technological, financial and economic, human resources, environmental potential; advertising effectiveness; level of logistics, storage, packaging, transportation; level of preparation and development of production processes; efficiency production control, tests and surveys; level of support for commissioning and installation work; level of post-production maintenance; service and warranty. That is, we are talking about the potential capabilities of the enterprise itself to ensure its own competitiveness.
As we have already noted, factors are those phenomena and processes of production and economic activity of an enterprise and the socio-economic life of society that cause a change in the absolute and relative value of production costs, and as a result, a change in the level of competitiveness of the enterprise itself.
Factors can influence both to increase the competitiveness of an enterprise and to decrease it. Factors are what help turn possibilities into reality. Factors determine the means and methods of using competitiveness reserves. But the presence of the factors themselves is not enough to ensure competitiveness. Gaining a competitive advantage based on factors depends on how effectively they are used and where, in what industry they are used.
Ensuring product competitiveness and ways to improve it
In modern conditions, there is a need to change the orientation and criteria for evaluating developed and manufactured products.
The competitiveness of a product is understood as the totality of its quality and cost characteristics, which ensures the satisfaction of the specific needs of the buyer and distinguishes it favorably for the buyer from similar products - competitors.
Competitiveness is determined by the totality of product properties that are part of its quality and are important for the consumer, determining the consumer’s costs for the acquisition, consumption and disposal of products. The general scheme for assessing competitiveness is presented in Fig. 3.
Figure 3. Scheme for ensuring competitiveness
Assessing competitiveness begins with defining the purpose of the study:
O if it is necessary to determine the position of a given product among similar ones, then it is enough to directly compare them according to the most important parameters;
O if the purpose of the research is to assess the prospects for the sale of a product in a specific market, then the analysis should use information that includes information about products that will enter the market in the future, as well as information about changes in current standards and legislation in the country, and the dynamics of consumer demand.
Regardless of the purposes of the study, the basis for assessing competitiveness is the study market conditions, which should be carried out constantly, both before the development of new products and during its implementation. The task is to identify the group of factors that influence the formation of demand in a certain market sector:
O changes in the requirements of regular product customers are considered;
O the directions of development of similar developments are analyzed;
O areas of possible use of products are considered;
O the circle of regular customers is analyzed.
The above implies “ comprehensive study market". A special place in the study of the market is occupied by long-term forecasting of its development. Based on market research and customer requirements, products are selected for analysis or requirements for a future product are formulated, and then the range of parameters involved in the assessment is determined.
The analysis should use the same criteria that the consumer uses when choosing a product. For each group of parameters, a comparison is made showing how close these parameters are to the corresponding demand parameter.
Competitiveness analysis begins with an assessment of regulatory parameters. If at least one of them does not correspond to the level prescribed by current norms and standards, then further assessment of the competitiveness of the product is impractical, regardless of the result of comparison in other parameters. At the same time, exceeding norms and standards and legislation cannot be considered as an advantage of the product, since from the consumer’s point of view it is often useless and does not increase consumer value. Exceptions may be cases when the buyer is interested in slightly exceeding current norms and standards in the hope that they will be tightened in the future.
Group indicators are calculated, which express in quantitative form the difference between the analyzed product and the need for a given group of parameters and allows one to judge the degree of satisfaction of the need for this group. An integral indicator is calculated, which is used to assess the competitiveness of the analyzed products for all groups of parameters under consideration as a whole.
The results of the competitiveness assessment are used to develop a conclusion about it, as well as to select ways to optimally increase the competitiveness of products to solve market problems.
However, the fact of the high competitiveness of the product itself is only a necessary condition for the sale of this product on the market in given volumes. You should also take into account the forms and methods of maintenance, the presence of advertising, trade and political relations between countries, etc.
As a result of assessing the competitiveness of products, the following ways to increase the competitiveness of the solution can be adopted:
O change in the composition, structure of the materials used (raw materials, semi-finished products), components or product design;
O changing the order of product design;
O changes in product manufacturing technology, test methods, quality control systems for manufacturing, storage, packaging, transportation, installation;
O changes in prices for products, prices for services, maintenance and repair, prices for spare parts;
O changing the procedure for selling products on the market;
O change in the structure and size of investments in the development, production and marketing of products;
O changes in the structure and volumes of cooperative supplies in the production of products and prices for components and the composition of selected suppliers;
O changing the supplier incentive system;
O change in the structure of imports and types of imported products.
The strategy for improving product quality is an important component of the company's strategy. The objects of forecasting are indicators of product quality that are inferior to similar indicators of competitors' products.
Competitiveness- this is the ability of a certain object or subject to meet the needs of interested parties in comparison with other similar subjects and/or objects. Objects can be goods, enterprises, industries, regions (countries, regions, districts). Subjects can be consumers, producers, the state, and investors.
Competitiveness can only be determined by comparing objects or subjects with others.
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Product competitiveness is a complex of consumer and cost characteristics of a product that determine its success in the market. One of the components of competitiveness is the quality of products (services). Product quality- this is a certain set of properties of a product that can, to one degree or another, satisfy the required needs when used for their intended purpose, including recycling or destruction. The production activity of any enterprise in modern conditions depends on how successfully the problems associated with the competitiveness of its products are solved. Only by solving this problem can an enterprise operate effectively and develop in a market environment. This determines the relevance of the chosen topic. The successful operation of enterprises in a competitive environment depends on a system of external and internal relationships. According to many scientists, integral factors and, above all, investment, innovation and financial factors have the greatest impact on the competitiveness of enterprises. The main requirements for achieving competitive production are: the use of advanced technology, modern management methods, timely renewal of funds, ensuring production flexibility, proportionality, continuity and rhythm of processes. Components of product competitivenessEssence, indicators and factors of product competitivenessThe struggle for the consumer is, first of all, a struggle for sphere of influence in the market, and it, in turn, depends on low price and quality industrial products, that is, use value. In the course of competition, the social need for a given product is established and an assessment is given to determine the price level. The strength of an enterprise's position in the market is determined by the competitiveness of the products it produces and its ability to compete. Competitiveness reflects the quality side of the products offered. A product that is competitive is one whose complex of consumer and cost properties ensures its commercial success in the market. A competitive product is a product that compares favorably with analogue competitors in terms of a system of qualitative and socio-economic characteristics. Indicators of product competitiveness are: Competitiveness means high quality products while maintaining high wages and living standards. The most important factor ensuring competitiveness is increasing the rate of labor productivity. Quality parameters, as a rule, are determined based on the interests of the manufacturer, and competitiveness parameters - based on the interests of the consumer. The level of quality and technical level of products are set by the technical level of modern production, and to assess competitiveness it is necessary to compare it with the level of development of needs. For each product, it is necessary to assess its level of competitiveness in order to further analyze and develop a successful product policy. Competitiveness assessment consists of the following stages:
The competitiveness of a product largely determines the competitiveness of the enterprise itself, its financial and economic condition and reputation. The competitive sustainability of an enterprise is facilitated by the compliance of enterprise management and its technological structure. The greater the gap between the organization of enterprise management and the technical level of production, the faster it loses its competitiveness. The production and sale of competitive goods and services is a general indicator of the viability of an enterprise. However, the production of competitive products can be resource-intensive and high-cost, which in market conditions will inevitably lead to a decrease in efficiency, a decrease in profits, and a deterioration in the financial position of the enterprise. In this case, additional financing is required, which ultimately reduces the competitiveness of the manufacturer. Application of intensive technologies, high level mechanization is a necessary condition for generating income from manufactured products. In order to produce goods at the level of world standards, new technologies and modern equipment. This requires significant investments that can ensure not only high quality Russian goods, but also create new jobs. The second group of factors consists of product quality indicators, determined by current standards, norms, and recommendations. The third group of factors influencing the level of competitiveness includes economic indicators that form the cost and price of goods. Ensuring the competitiveness of an enterprise is achieved through compliance with the fundamental principles of the market system and the reasonable use of factors affecting the efficiency and competitiveness of production. The basic principles of enterprise competitiveness include: The process of forming competitiveness is a set of organizational and economic measures to bring production programs for the production of products of a certain volume, range and quality in accordance with the existing production potential. One of the main factors in the formation of competitiveness is the maximum use of competitive advantages. Competitive advantagesIn theory, there are two main types of competitive advantages of a commodity manufacturer. The essence of the first is lower production costs due to concentration and best technology production, which means the ability to sell at prices lower than competitors. The second type of competitiveness is based on satisfaction special needs buyer, his requests for a premium price. Competitiveness acts as part of the reproduction process regarding the methods and methods of managing the market for goods and services and is assessed by the mass of profits in relation to the resources consumed and used. There are also five factors identified by M. Porter that determine competitiveness.
In addition, M. Porter identifies the five most typical innovations that provide a competitive advantage: The competitiveness of an enterprise is a relative characteristic that expresses the differences between the development of a given enterprise and the development of competitors in terms of the degree to which its products satisfy people’s needs and in terms of efficiency. production activities. The competitiveness of an enterprise characterizes the possibilities and dynamics of its adaptation to the conditions of market competition. Let us formulate general principles that give competitive advantages to enterprises:
The place of product competitiveness in enterprise managementProduct competitiveness managementThe competitiveness of a product is a decisive factor in its commercial success in a developed competitive market. Significant component The competitiveness of a product is the level of consumer costs during operation. In other words, competitiveness is a complex of consumer and cost characteristics of a product, which determine its success in the market. To the extent that their manufacturers are always behind the goods, we can rightfully talk about the competitiveness of the corresponding enterprises and the countries in which they are located. Any product, while on the market, is actually tested for the degree of satisfaction of social needs: each buyer purchases the product that best satisfies his personal needs, and the entire set of buyers purchases the product that most fully meets social needs than competing goods. In this regard, the competitiveness of a product is determined only by comparing competitors' products with each other. In other words, competitiveness is a relative concept, tied to a specific market and time of sale. All buyers have their own individual criteria for assessing the satisfaction of their own needs, so competitiveness also takes on an individual shade. Competitiveness can only be determined by properties that are of significant interest to consumers. All product characteristics that go beyond these interests are not considered when assessing competitiveness, since they are not related to it. Exceeding norms, standards and rules (provided that it is not caused by an upcoming increase in government and other requirements) not only does not improve the competitiveness of the product, but, on the contrary, often reduces it, as it leads to higher prices without increasing consumer value, due to which it seems useless to buyers. The study of the competitiveness of a product must be carried out continuously, in close connection with the phases of its life cycle. This is caused by the need to timely detect the moment when the competitiveness of a product begins to decline and the ability to make appropriate decisions (for example, discontinue production, modernize a product, etc.). At the same time, they proceed from the fact that the release of a new product before the old one has exhausted its ability to maintain competitiveness is, as a rule, economically impractical. At the same time, any product, after entering the market, begins to gradually consume its competitive potential. This process can be slowed down and temporarily delayed, but it cannot be stopped. That's why new product is designed according to a schedule that ensures entry into the market at the time of significant loss of competitiveness of the previous product. Competitive marketing strategies at the corporate level, they pursue the goal of ensuring a competitive advantage of the enterprise in the market relative to competing firms. The meaning of competitive strategies is the ability of an enterprise to maintain a certain market share (or market segment) or increase it. Competitive advantage is achieved by the enterprise by solving the following issues:
To solve these problems and manage the competitive position of organizations, they can use the following models:
Ways to ensure competitive advantage of productsBased on M. Porter’s general competitive matrix, the competitive advantage of an enterprise in the market is ensured in three main ways: 1). Product Leadership- based on the principle of product differentiation. In this case, the main focus is on:
When the value of a product increases in the eyes of the consumer, he is willing to pay a higher price for the desired product. However, the price increase that is acceptable to the buyer must be more increase the enterprise's costs of producing and maintaining an element of differentiation. The combination - high utility and high price - forms the “market power” of the product. Market power protects the manufacturing enterprise from competition and provides the enterprise with a stable position in the market. Marketing management is then aimed at constantly monitoring consumer preferences, monitoring their “values”, as well as the lifespan of the elements of differentiation corresponding to this value. 2) Price leadership. This path is ensured by the enterprise’s ability to reduce production costs. Here the main role is given to production. Close attention sent to:
Cost reduction is based on the use of the “experience curve” (the cost of producing a unit of output falls by 20% whenever production doubles) and the “law of experience” derived from it. The law of experience states: “The unit cost of adding value to a standard product, measured in constant monetary units, decreases by a fixed percentage for every doubling of output.” 3) Niche leadership is defined as focusing a product or price advantage on a specific market segment.. Moreover, this specialized segment should not attract special attention stronger competitors. This type of leadership is typically used by small businesses. Niche leadership can be applied and large organizations to highlight a narrow group of consumers (professionals, people with a certain income level, etc.). The type of strategy directly depends on the position occupied by the enterprise in the market and on the nature of its actions. According to the classification proposed by F. Kotler, the market leader occupies a dominant position in the market and makes the greatest contribution to its development. The leader often represents a reference point for competitors who attack, imitate or avoid him. The leading enterprise has significant strategic opportunities. Pursuer of the market leader is an enterprise that does not currently occupy a dominant position, but wants to attack the leader. Occupying a certain position in the market, enterprises choose proactive (active) or passive strategies to ensure their competitive advantages (see table).
Now let's turn to pricing management. Competitive pricing is aimed at maintaining price leadership in the market. The following methods exist here:
Price wars are usually used in monopolistic competition markets. By setting a price higher than competitors, a small number of buyers are attracted. If the price is lower than competitors, then competitors will respond in kind. The desire to attract consumers with low prices leads to low profits over time. Skimming prices (or prestige prices) are set for new, fashionable, prestigious products. The calculation is aimed at those market segments where buyers will begin to purchase them, despite the high price level. As competitors offer the same products, this segment will become saturated. Then the enterprise will be able to move to a new segment or a new level of skimming. The task is to stay ahead of competitors and maintain leadership in a certain area of the market. The skimming strategy is seen as a prudent financial and marketing issue at the same time. The main advantage of this strategy is that it leaves the possibility of subsequent adjustments in prices taking into account market evolution and competition. From a marketing point of view, it is always easier to reduce the price than to increase it. From the financial side, it allows you to quickly free up resources for use in other projects. Penetration pricing involves setting initial prices lower than those of competitors. Penetration prices should create a barrier to competitors producing similar products. The policy of low prices is more aimed at obtaining long-term profits (compared to the “quick” profits of high prices). Adoption curve pricing represents a trade-off between skimming and penetration costs. This approach involves a rapid transition from high prices to lower ones to attract a wide range of buyers and counteract competitors. Assessment of product competitivenessMethods for assessing the competitiveness of productsThe assessment of competitive products reflects the corresponding functional tasks: studying the market situation (demand, supply, prices, market capacity, sales channels), determining a set of consumer and economic indicators of competitiveness (natural, cost, relative), choosing a basis for comparing competitors (analysis of competitiveness indicators, choice object as a basis for comparison, calculation of the integral indicator of competitiveness). The assessment of the competitiveness of a product is made by comparing the parameters of the analyzed product with the parameters of the comparison base, since, as mentioned above, competitiveness is a relative concept. Customer needs or a sample can be taken as a basis for comparison. A sample is usually a similar product that has the maximum sales volume and the best sales prospects. In the case when demand is taken as the basis of comparison, the calculation of a single indicator of competitiveness is carried out using the formula:
If a sample is taken as a basis for comparison, the value of the i-th parameter for the product taken as a sample is entered in the denominator of the fraction. In the case when the product parameters do not have physical measure, scoring methods are used to assess their characteristics. The method described above (differential) only allows us to state the fact of the need to increase or decrease the parameters of a product to increase competitiveness, but does not reflect the influence of each parameter when choosing a product by the consumer. The complex method is based on the use of group, generalized and integral indicators. In this case, the calculation of the group indicator according to technical parameters is carried out according to the formula:
The group indicator for economic parameters is calculated using the formula:
Where Z, Z 0 are the total costs of the consumer, respectively, for the product and sample being evaluated. The consumer's total costs include one-time costs for the purchase of goods (Ze) and the average total costs of operating the goods:
The mixed method allows you to express the ability of a product to compete in certain market conditions through a complex quantitative indicator - the competitiveness coefficient:
Thus, with the help of numbers it is possible to characterize the competitiveness of one product in relation to others. Comparison of goods is carried out using a parameter comparison table. Based on the results of comparison with one of the three described methods, one of the following conclusions can be drawn: The conclusion about competitiveness is supplemented by conclusions about the advantages and disadvantages of the product being evaluated compared to similar ones, as well as proposals for measures necessary to take in order to improve the position of the product on the market. Based on the results of assessing the competitiveness of a product, the following decisions can be made:
The basis for assessing competitiveness is to compare the characteristics of the analyzed goods with a specific need and identify their compliance with each other. For objective assessment it is necessary to use the same criteria that the consumer uses when choosing a product on the market. Consequently, it is necessary to solve the problem of determining the range of parameters that are subject to analysis and are significant from the point of view of consumers. Parameters for assessing the competitiveness of a productThe range of parameters that is used to assess the competitiveness of a product consists of two general groups: Technical parameters include need parameters that characterize the content of this need and the conditions for its satisfaction (see figure below).
Brief description of the parameters: 1) Purpose parameters characterize the scope of application of the product and the functions that it is intended to perform. These parameters are used to judge the content beneficial effect achieved through the use of a given product in specific conditions of consumption. The destination parameters are in turn divided into:
2) Ergonomic parameters characterize the product from the point of view of its compliance with the properties of the human body when performing labor operations or consumption; 3) Aesthetic parameters characterize information expressiveness (rational form, holistic composition, perfection of production execution, stability presentation). Aesthetic parameters model the external perception of the product and reflect it external properties, which are the most important for consumers; 4) Regulatory parameters characterize the properties of the product, regulated by mandatory norms, standards and legislation. The group of economic parameters includes the total costs of the consumer (consumption price) for the acquisition and consumption of products, as well as the conditions for its acquisition and use in a specific market. Total consumer costs in general case consist of one-time and ongoing costs. The final decision on the selection of a range of parameters for assessing competitiveness is made by an expert commission, taking into account the specific conditions of use of these products and the purposes of the assessment. A flowchart for studying competitiveness is presented below.
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Introduction………………………………………………………………………………………...5
Chapter 1. Theoretical foundations assessment of the competitiveness of the enterprise’s products………………………………………………………………………………...10
1.1. The concept of competition, competitive advantages, competitiveness of an enterprise……………………………………11
1.2. Methods for assessing the competitiveness of an enterprise…………….…..15
1.3. Competitiveness of a product and methods for its assessment………………….27
Chapter 2. Assessing the competitiveness of an enterprise (using the example of IP Bibicheva S.V., Ivanovo)……………………………………………………...43
2.1. Brief history creation and development of the enterprise…………………44
2.2. Analysis of suppliers, competitors, external and internal environment of the enterprise………………………………………………………………………………...46
2.3. SWOT – analysis, assessment of the strengths and weaknesses of the enterprise………….52
2.4. Calculation and analysis of the integral indicator of competitiveness of individual entrepreneurs Bibicheva S. V………………………………………………………………………………….56
2.5. Formation and selection of competitive strategy for individual entrepreneurs Bibicheva S. V...57
Conclusion………………………………………………………………………………….59
Bibliography.……………………………………………………64
Applications………………………………………………………………………………...67
Introduction
A radical restructuring of the economic management system, moving towards market relations, is one of the most important areas of the reform program being carried out in our country. This problem is of particular importance at the enterprise level, whose position in a market economy is changing radically. Becoming an object of commodity-money relations, having economic independence and being fully responsible for the results of its economic activities, the enterprise must create a management system that would ensure high efficiency, competitiveness and stability of its position in the market, therefore the topic of assessing the competitiveness of the organization’s products is currently time is especially relevant.
In Russia, attention has only recently begun to be paid to the topic of assessing the competitiveness of a subject (enterprise, organization, product, etc.), so the consideration of this topic in the work has its own novelty of research. Thus, in the annual Message of the first Russian President“Russia at the Turn of Epochs”, at a joint meeting of the chambers of the Federal Assembly of the Russian Federation, much attention was paid to the problems of increasing the competitiveness of our country as a whole. The goal of any state can be only one: a real and sustainable increase in the standard of living of its citizens. To do this, our state, like everyone else, must maintain and increase the efficiency of the economy in the conditions of a steadily intensifying international competition. We must also solve all current problems through our competitiveness. A competitive company is able to survive, “stay afloat” during the formation of market relations in our country, maintain its turnover at a constant level or gradually increase it. Based on this, the main meaning of economic development in the country, the main idea of our entry into the world community should be to increase the competitiveness of the Russian economy, enterprises, and firms. It is important for us to realize that competitiveness is determined by long-term development processes, and the benefits from supporting producers of low-quality goods can only be short-term. Therefore, supporting producers of low-quality domestic goods does not at all increase, but, on the contrary, undermines the competitiveness of the economy, allows inefficient enterprises to remain afloat and thereby drowns efficient ones.
The concept of competitiveness is interpreted in the literature very ambiguously. In general, competitiveness is a property of an object and its service, characterized by the degree of actual or potential satisfaction of a specific need by it in comparison with similar objects presented on a given market/
The competitiveness of an enterprise can be defined as its comparative advantage in relation to other enterprises in a given industry within the national economy and beyond. Competitiveness reflects the productivity of resource use. The principle is valid both at the level of an individual enterprise and at the level of the country’s economy as a whole. Based on it, it can be argued that in order to ensure competitiveness, an enterprise must constantly take care of the most complete and efficient use of the resources at its disposal, as well as all types of resources acquired for future production.
M. Porter believes that a company's position in the industry is determined by competitive advantage. Ultimately, firms outperform their rivals if they have a strong competitive advantage. Competitive advantage is divided into two main types: 1) lower costs and 2) product differentiation. Low costs reflect a firm's ability to develop, produce, and sell a comparable product at a lower cost than a competitor. Differentiation is the ability to provide the buyer with unique and greater value in the form of new product quality, special consumer properties or after-sales service.
It is difficult, but not impossible, to gain a competitive advantage based on both lower costs and differentiation. However, any effective strategy must pay attention to all types of competitive advantage, although strictly adhering to one of them. A firm that focuses on low costs must still provide acceptable quality and service. In the same way, the product of a firm that produces differentiated products should not be so much more expensive than the products of its competitors that this would be to the detriment of the company.
Competitive advantage is those characteristics, properties of a product or brand that create for a company a certain superiority over its direct competitors. These attributes or characteristics can be very different and relate both to the product itself (basic service), and to additional services accompanying the basic one, to forms of production, marketing or sales specific to the company or product.
This superiority is therefore relative, determined in comparison with a competitor occupying the best position in the product market or market segment. This most dangerous competitor is called priority.
Competitive advantage can be external if it is based on the distinctive qualities of a product that create value for the buyer by either reducing costs or increasing efficiency. External competitive advantage therefore increases a firm's “bargaining power” in the sense that it can force the market to accept a sales price higher than that of a priority competitor that does not provide the corresponding differentiating quality.
Competitive advantage is internal if it is based on the firm's superiority in production, management or product costs, which creates value for the manufacturer to achieve lower costs than a competitor. Internal competitive advantage is the consequence of higher productivity, which provides the firm with greater profitability and greater resistance to selling price declines imposed by the market or competitors.
The purpose of writing the work is to consider issues of assessing the competitiveness of an organization, as well as in practice, in the analytical chapter, to assess the competitiveness of a trade organization of individual entrepreneur Bibicheva S.V.
Job objectives:
Conduct a literature review on organizational competitiveness;
Research competitiveness as driving force development of society;
Study the methodology for analyzing and assessing the competitiveness of an organization;
Explore the classification, methodology for researching competitors; assessment of the competitiveness of the product.
Legislative framework writing thesis are orders and resolutions of the Ministry of Finance of the Russian Federation.
The subject of study in this work is the assessment of the competitiveness of the organization and the goods it sells.
Methods for studying the competitiveness of an organization are: statistical, analytical, economic and mathematical.
The object of research in the work is IP Bibicheva S.V.
The concept of competition, competitive advantage, enterprise competitiveness
Concept competition is complex and multifaceted. The definition of the most famous competition researcher M. Porter: “Competition is a dynamic and evolving process,...a continuously changing landscape in which new products, new marketing paths, new production processes and new market segments appear... In competition main role innovation and change play a role.” From this definition it follows that competition is a dynamic state of the market environment, which forces its participants to improve their products and activities. Thus, M. Porter defines competition as the engine of progress.
Competitive advantage, considered as a set of product properties that create for a company a certain superiority over competitors (mission, image, level of culture, quality of the management system, etc.), can be determined by various factors. On the other hand, competitive advantage can increase market power and thereby influence economic conditions. An integral indicator of competitive advantages, for example, of a product, characterizes its potential competitiveness. A fairly complete classification of the competitive advantages of various objects can be found in the book.
Concept competitiveness is interpreted in the literature very ambiguously. In general, competitiveness is a property of an object and its service, characterized by the degree of actual or potential satisfaction of a specific need by it in comparison with similar objects presented on a given market.
Enterprise competitiveness can be defined as its comparative advantage relative to other enterprises in a given industry within the national economy and beyond. Competitiveness reflects the productivity of resource use. The principle is valid both at the level of an individual enterprise and at the level of the country’s economy as a whole. Based on it, it can be argued that in order to ensure competitiveness, an enterprise must constantly take care of the most complete and efficient use of the resources at its disposal, as well as all types of resources acquired for future production.
The competitiveness of a firm can be detected (assessed) only within a group of firms belonging to the same industry or firms producing substitute goods. Thus, the competitiveness of a company is a relative concept, which is defined as the ability to provide a better offer compared to a competing company.
Before moving on to a detailed analysis and assessment of the competitiveness of an enterprise, it is necessary to develop an action plan. In Fig. 1 provides an algorithm that will ultimately improve the competitive advantages of the enterprise.
The most difficult is assessment of the degree of competitiveness, those. identifying the nature of the company's competitive advantage compared to other companies. This raises several problems:
1. Selection of basic objects of comparison, i.e. selection of a leading company in the industry of the country or abroad. Such a leading company must have certain parameters for such a comparison to be correct. These parameters include:
· commensurability of the characteristics of manufactured products according to the identity of the needs satisfied with their help;
· commensurability of market segments for which the products are intended;
· commensurability of the life cycle phase in which the company operates.
2. Selection of criteria for the productivity of the use of company resources.
Rice. 1. Algorithm for analyzing and assessing the competitiveness of an enterprise
The productivity of resource use presupposes the greatest return, the greatest result per unit of total resources available to the company. This indicator is usually the profitability of production. At the initial stages of the life cycle, a company can operate on the principle of “break-even” or expand market share. Profitability of production may not appear in pure form, and the degree of competitiveness will be expressed, for example, in the formation of a favorable image of the company in the eyes of the public and strategic influence groups.
3. Possibility of scanning (tracking) the market.
Enlarged stages of assessing the competitiveness of an object(for example, product, enterprise, industry, etc.) are as follows:
1) Study the problem;
2) Study of normative and methodological documents on assessment and other related issues;
3) Study of the external environment and internal structure of the object of analysis;
4) Study of market conditions and parameters;
5) Collection of initial information to assess the competitiveness of the facility;
6) Bringing information into a comparable form;
7) Development of assessment technology;
8) Analysis of information on the factors of competitiveness of the object;
9) Assessment of the competitiveness of the facility;
10) Development of proposals for the formation of a program to increase the competitiveness of the facility.
The most famous today models and methods for assessing the competitiveness of goods and enterprises can be divided into two groups: analytical and graphical methods. This division into methods for assessing the competitiveness of a product and methods for assessing the competitiveness of an enterprise is quite arbitrary, since they largely coincide, only the object of research changes. The classification of the main methods for assessing the competitiveness of objects is presented in Table 1.
Table 1
Methods for assessing the competitiveness of objects
Competitiveness is the ability of a business entity to get ahead of rivals using its advantages to achieve its goals.
Definition
This concept is one of the integral characteristics that can be used when assessing the effectiveness of economic activities of representatives of the business sector. In other words, competitiveness is the ability of a subject to withstand competition.
Approaches to the concept of “competitiveness”
In the thematic economic literature one can find a variety of approaches to defining this concept:
From the position of considering the characteristics of the research goals and problem statement, which can lead one or another author to focus on a specific aspect of competitiveness;
As a result of the analysis of the features of the choice of the subject of research itself, which leads to the choice of the subject of competition (goods or services), subjects (enterprises, organizations, industries or the national economy of the state as a whole), etc.
Main types
There is competition at the following levels:
Industries;
Region;
Enterprises;
Products.
At the country level, competitiveness is the ability of the state to produce goods and services that meet the requirements of the world market, which would create conditions for increasing resources and ensuring stable growth rates in the quality of life of people and GDP.
Regional competitiveness is a similar formulation, but in this case all concepts are given at the regional level, and instead of GDP we are talking about the growth rate of GRP.
When considering the competitiveness of an organization, it should be noted that these are the capabilities of a business entity to achieve its goals in conditions of often fierce competition. In this case, we can also talk about meeting the needs of consumers in the production process and offering goods that have certain advantages over analogues on the market.
The competitiveness of an organization should be considered as the totality of all the main characteristics of the enterprise itself, which can be determined by its potential, external socio-economic and organizational factors that make it possible to create products that are attractive to consumers.
And finally, the competitiveness of a product is its ability for buyers to be attractive in comparison with other products due to its quality and cost characteristics, as well as consumer ratings.
Factors of competitiveness
To achieve some success in a modern market economy, the decisive element must be the effective use various factors that influence competitiveness, namely:
Communication policy of rival companies;
Development of new products and assignment of trade marks and brands;
Attractiveness and quality of product packaging;
Efficiency and organization of service policies of competing companies;
Organization of sales of products from competitors and its main indicators;
Rationality of channels for the movement of goods among similar enterprises on the market.
In other words, competitiveness factors reflect indicators that participate in the specific struggle of business structures to demand their own products, expand the circle of buyers and increase their share in the modern market.
External factors
Factors that influence the efficiency of business activities of various business structures that can be used by competitiveness analysis include:
State factors expressed in economic methods(for example, depreciation and tax policies, financial, credit and investment policies, target programs and customs policies) and administrative and legal methods (certification, standardization according to the legislative framework);
Market factors determined by market type and size, competitors, labor resources, labor market, income level and industry characteristics;
Socio-political factors in the form public organizations, political stability, level of culture and social status.
Internal factors
The assessment of competitiveness may use the following internal factors:
The organizational structure of the enterprise (for example, financial, economic, production and technological potential, as well as logistics);
Innovation factor, expressed in human resources, control and analysis of innovations, a system of certificates and standards;
Quality of service and operation in the form of packaging, storage, transportation of products, environmental friendliness of products, recycling capabilities, etc.
Problematic issues
Competitiveness involves many controversial issues. This is, firstly, determining the degree of adequacy of the entire production and technical structure to the requirements in the field of marketing, assessing the possibility of effective resource saving in the production of high-quality and economical products.
Second, increased levels of enterprise rivalry may influence the degree to which employees understand the organization's strategy and goals.
Thirdly, increasing the competitiveness of the regulatory framework depends on regulations, technological and methodological documentation, as well as the various qualities of the finished product.
Fourthly, competition in the sphere information resources can be expressed in a certain practical applicability, consistency and trust.
Increasing the competitiveness of the enterprise
The success of any entrepreneur also depends on such an important factor as the internal environment, which is directly dependent both on the entrepreneur himself and on his competence, dedication, willpower, skills and abilities in the process of doing business. In this case, it is impossible not to mention that increasing the competitiveness of an enterprise is influenced by strict compliance by entrepreneurs themselves and their managers with regulations that are responsible for regulating the activities of a particular business or organizational and legal form.
Competitive advantages
These indicators can manifest themselves in the organizational-economic and technical-technological spheres of the entrepreneur’s activity in the form of profit, high profitability and sales growth. Competitiveness assessment allows using modern technologies reduce the cost of finished products, effectively use certain market segments, as well as quickly adapt to its changes.
An important criterion for grouping competitive advantages is the basic condition that determines the nature of the source of their manifestation. Based on this characteristic, they are known the following types such advantages:
Economic orientation (market conditions, public policy, market factors driving demand, and the degree of allocation financial resources enterprises);
Regulatory and legal advantages provided in the form of benefits, subsidies, subventions, customs legislation;
The structural nature of competitiveness, expressed in the integration of the production process and the sale of finished products;
Administrative nature, manifested in restrictions on the part of municipal and state authorities when issuing licenses and patents, quotas, etc.;
Technical nature in the form of technical and technological features of production.
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