Definition of competitiveness

Welcome to my Definition of Competitiveness. Etymology: competition derivative, from the English competition, itself derived from the Latin competition, rivalry, competition, competition, rival bid.

The competitive adjective describes what refers to the competition, which is able to withstand competition with others.

Competitiveness is the nature of what is competitive. It is a person's ability, a sport, a business, an economic sector, organization, economy of a territory or country, to face competition, whether actual or potential.

In a given market competitiveness of a company is its ability to be dominant. Competitiveness can be assessed by changes in market share.

In macroeconomics, the competitiveness of the economy of a country or continent is the ability of its production facilities to meet internal and external demand (exports) contributing to the improvement of living standards of its inhabitants. It can be measured by market share (exports brought the world total).

According to the origin of the factors of competitiveness of a business, an economic sector or national economy, there are competitive:

    by prices

    It is the competition that engages companies on prices. A product or service equivalent, the more competitive is the one that offers the lowest price. Regarding exports to the level of a country's price competitiveness "compares the evolution [of] export price to that of our partners The exchange rate can have a significant impact on price competitiveness. A depreciation of the national currency will lead to improved price competitiveness. " (INSEE)

    Price competitiveness resulting from general productivity gains (economy of scale, technical progress, etc.), an undervaluation of the national currency, etc.

    costs by

    Cost competitiveness is linked to changes in production costs, relative to those of competitors, without necessarily productivity gains.

    Ex-lower labor costs, lower cost of raw materials, lower transport costs, etc.

Other factors affecting the competitiveness of a national economy:

    the level of taxation on companies

    the quality of production at large,

    the qualification of the workforce,

    the fabric of SMEs, the presence of infrastructure (roads, railways, port, the telecommunications network, ...)

    proximity to suppliers,

    etc.

A cluster refers, in a given territory, a business partnership approach, research centers and training organizations, whose objectives are to create synergies around innovative projects in one or more sectors. Initiated by the French government in July 2005, the clusters must seek critical mass to increase their competitiveness but also achieve international visibility.

Non-price competitiveness or off costs means factors other than prices and costs that contribute to competitiveness: quality, innovation, brand image, associated services (logistics, customer service, etc.), delivery, the sales process, ergonomics, design, etc. They are considered the levers of developed countries to improve their competitiveness with developing countries whose labor costs are very low.
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