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Tuesday, August 30, 2016

Competitiveness


Welcome to my Competitiveness. Competitiveness is a market in a given company, industry and country concept is the ability to compare sales and selling or supplying goods and services. Widely used in economics and management theory, but the usefulness of this concept is a lively debate of economists such as Paul Krugman, especially in the context of national competitiveness. This term is to be applied to a market and the market structure is used to refer to the extent to be considered a competition. This usage is not related to the degree of "competition" of the individual companies.

Competitiveness - the ability of a particular object or subject to outdo competitors in the given conditions.

Competitiveness - also defined as the subject property, indicating its ability to compete with their own kind, his ability to make competitive actions, etc.

Objects that have competitiveness, can be divided into four groups.

    goods;
    enterprises (both goods producers);
    industry (as a set of companies offering products or services);
    regions (districts, regions, countries or groups).

In this connection, to talk about these kinds of it as:

    National competitiveness
    The competitiveness of the goods
    Enterprise Competitiveness

In addition, the principle can be divided into four types of entities that assess the competitiveness of various objects:
The competitiveness of the goods - the ability of products to compete with each other.

The competitiveness of the goods can be evaluated only with those products that meet similar needs. In particular individual consumer satisfaction evaluation criterion consumption for technical, qualitative, economic, aesthetic qualities, in terms of implementation, etc.

Comparing the competitiveness of this product with any other commodity, it is appropriate to use the comparative standard. For instance, an "
extremely competitive goods", "goods with high competitiveness", which means that this product has more demand than on similar goods of a competitor; for this product, the buyer is willing to pay more; in this product is better than the other "price-quality". Accordingly, products with "low competitiveness" or "non-competitive" meet the opposite criteria.

The competitiveness of the goods is ensured by its competitive advantages: the optimal ratio of "price-quality", more modern design, maintenance, ease of operation, etc.
The competitiveness of the enterprise - this property is characterized by a degree of actual or potential to meet their specific needs in comparison with analogous objects appear for in this market. Competitiveness measures the ability to withstand competition in comparison with similar facilities in this market, says Philip Kotler.

The competitiveness of enterprises is provided competitive position held by the firm that manages the company.
Competitive position - the company's position in relation to the subjects of the competitive environment, which is formed of a plurality of positions, which the company takes and defends in a competitive environment.
Competitive position - in the theory of competitive position of the company in relation to the subjects of the competitive environment, which is formed of a plurality of positions, which the company takes and defends in a competitive environment. The competitive position of market participants acts in competition theory generalized expression of a particular position they occupy in the competitive environment in relation to competitors and other environments in the course of their professional activities in their own business management.

The term "position" has different interpretations in modern Russian and foreign literature in economics, management, and business. Along with the notion of "competitive position" found the terms market position, price points, consumer items, marketing position, resource gap. Each of the following definitions should be used according to the inherent meaning of the original.

AV Baboshin gives the following definition: The competitive situation of the company – fixed to a point in time the company's position relative to its competitors. It is formed in the course of a business entity of competitive action (effects on competition and their opposition), during which there is a realization of the potential competitiveness of the company. The acquisition of the competitive position of the company influences the level of change as well as the feasibility of the competitiveness of the next competitive action ... ... The competitive positioning of the company - a combination of competitive action to change or retention of occupied competitive position.

Competitive positions are held by market participants in relation to competitors and the rest of the environment (customers, suppliers, employees, the state, the public), as measured by comparing the volume of sales of goods/services / works competitors. With these estimates achieved an understanding of the position of a hand are advantageous. The ratio of the competitive position of the parties is always determined by identifying more favorable, less favorable, or mutually advantageous positions. The desired competitive position of market participants should be advantageous - more profitable. As a result, comparison of the competitive position, we can conclude, considering them as the best (very strong), good (strong), average, bad (weak), worst (very weak).

In the process of business competition, each firm takes, defends and strengthens its competitive position with respect to customers, suppliers, hired workers, competitors, and others. These positions are formed on the basis of their legitimate interests and objectives of the business. In turn, forms the environment in relation to them their positions according to their interests and objectives of the activity.


Achieving the competitive position of the parties indicate that market participants have made themselves, interacting with competitors, and what they are not allowed to or have led to the opponents, taking their own competitive action. Comparing the competitive positions of the parties, it is possible to determine the degree and extent of the lead market participants of their competitors, or keeping up with them; determine the competitiveness of the company.

Changes in Relations between competitors are always evaluated in comparison with how sales have changed for each of the contenders in the period under review. And it affects the assessment of other competitive results of market participants and the nature of the relationship of market participants with all its competitive environment.

Evaluation of competitive performance of market participants on the size of their competitive position in relation to competitors is the most important characteristic of the results of their participation in the business competition. Each market participant creates his position in relation to each competitor, it tends to occupy and defend in competition with them. These positions need to fix the relative position of the market participants as the competitors.

As market participants did not provide services to competitors, like the rest of the environment, they do not deliver the goods or perform the work for them, which would have affected to increase their competitive values, mutual competitive positions of the parties are characterized by extreme simplicity. Desirable for them are superior positions: Market participants tend to occupy and defend the best - the most profitable or good - a more favorable competitive position, leaving opponents, respectively, the worst - the least favorable or bad - disadvantageous position.

Therefore, ensuring preferential market participants, compared with competitors, position in the competitive environment is one of the main results of their participation in the competition. These results quantitatively recorded primarily in the comparative amounts of sales in sectors/segments where there is the presence of competition, and the consumers who are recognized compared to the general market.

Market participants occupy and defend a competitive position, speaking party product, industry, or inter-industry competition.

The competitive position of the company might be:

    reasoned and unreasoned,
    stable and unstable,
    strong and fragile,
    strengths and weaknesses.

Qualitative and quantitative certainty competitive position means that the position of businesses in a competitive market is always certain and proportionate.

The variety of subjects and areas of the company and determines the diversity of our competitive position by industry and product groups. Thus, one and the same firm may take a variety of competitive position in the business system.

Competitive businesses are able to change the position under the influence:

    the timing and dynamics of business activity of the company speed;
    the dynamics of the competitive potential of the company;
    changes in the value of profitability (loss) of the company.

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