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Monday, August 8, 2016

Definitions competitiveness-v

Welcome to my definitions competitiveness-v.
Defining the competitiveness of enterprises

Key Success Factors (or competitive convenience) - a habitual of a particular industry list of factors that bring it advantages over other sectors (eg, in the fight for investment through greater yield or rate of turnover of capital), and other companies in the sector over others. These factors are not constant, they vary depending on: characteristics of industries; market segments served, and time and stage of "life cycle" sectors and enterprises.


Key success factors are based on the scientific and technical level of production and product; level marketing; level management; the organizational and technical level of production processes; the financial-economic level of the company; level staff.

For each industry has its own specific requirements for the combination of these key success factors, but thriving enterprise in any industry, each of them can be a tool for winning the competition.

Key success factors forming the competitive object of research, product, production, business, industry, state and more.

In the strategic management of competitiveness often viewed in two ways:

1) competitiveness of goods (products) that the extent of its compliance requirements at particular target groups of consumers or chosen market on major characteristics: technical, economic, environmental and so on.

2) competitiveness - a level of talent in relation to other companies contending in the accumulation and utilization of the production capacity of a focus, as well as its individual components: technology, resources management (especially - Strategic current planning), skills and knowledge of staff, etc., which is expression resulting in such indicators as product quality, profitability, productivity and more.

The competitiveness of products. Expression enterprise competitiveness is products which it manufactures. Most models used to analyze the "portfolio company" based on determining the competitiveness of products. Each stage of the life cycle has specific characteristics competitiveness. Thus, in the early stages - initiation and access to the market - they can speed design work and time to market. Then come to the fore indicators of profitability, productivity and more.

Each product or service is valuable insofar as they can meet the needs of the consumer because all indicators that characterize a particular product or service will use objective and subjective, quantitative and qualitative parameters and indicators that are more or less reflecting the level of needs. The higher the level, the more competitive product produced by the enterprise.

It is necessary to distinguish between parameters and indicators of competitiveness.

Options competitiveness - is often quantitative characteristics of the properties, taking into account the features of the industry for its competitiveness. There are some parameters of competitiveness: technical, economic, and regulatory (various types).


Technical parameters are characteristic of technical and physical properties, which determine the characteristics of the industry and how to use and functions performed by the product during its use.


Economic parameters determine the level of production costs and consumer prices because of the cost of purchase, maintenance, use, disposal of goods.

Statutory parameters determining product compliance to established norms, standards and requirements resulting from the legislation and other regulations.

Competitive - a set of criteria for systemic quantitative evaluation of the product, based on the parameters of competitiveness.

The list of indicators of competitiveness depends on the object of research, and the selected methodology for determining competitiveness.

To compare automatic kontruleriv company "Hewlett-Packard" uses, such as the following indicators:

performance - possibilities (intervals) measuring vibrations MHz;

unit cost, USD .;

functionality - the number of operations that can be performed, m / m;

reliability - the frequency of refuse;

timely repairing/supplies.

Comparisons can be made in the tabular form, the indicators were chosen depending on the type of product. To decide whether to compete or not in a particular product, it is necessary to consider the approach proposed by K. Omai in "strategic thinking".

K. Omari ideas on the formation and use of key success factors, formulated as it wishes:


Compete wisely using their unique properties, which do not affect competition; old successful strategy saves boundary achieved; based on her new creative strategy will provide in the future a certain level of freedom;

Avoid intense competition, which could lead to mutual destruction with a similar orientation, secondary benefits.

The basic idea of this model is targeting enterprises in the creation and development of key success factors, missing the competition. The company, based on the views of the author, can and should create and support the demand for products with unique properties. These properties can be formed both at the production stage and the stage of distribution and service. This all enhances the quality of consumption. Arguments to avoid competition regarding products which are marked by using the weaknesses of competitors and the whims of consumers are the unreliable and short-term existence of the competitive advantages of this type, since it is clear that competitors are constantly working hard to avoid weaknesses, and consumers may suddenly change their commitment.


Particular attention should be paid to competitive parity, which is a situation where two or more competitors have achieved in the development of the same competitive advantage by using the same "strengths".

The competitiveness of the company. Competitive products - the result of the functioning of a competitive organization able to create, produce and provide the necessary level of consumption in customers. Main here - its potential, its ability to effectively use and develop.

The competitiveness of not a permanent feature, it defines the ability to lead a successful competition, confront a period of major competitors. With the changes in the external and internal environments change as a comparative competitive advantage relative to other industry. From this, it can be argued that the competitiveness of the organization - a relative term, since it can be determined only by comparing the individual characteristics of the company with the characteristics of other similar companies. The competitiveness of enterprises depends on the object of comparison, as well as the factors used to estimate competitiveness. We cannot speak of absolute competitiveness: it can be "number one" in the industry in the national economy and be uncompetitive in international markets.

In a market economy to gather all the necessary and complete information about a competitor cannot, however, advisable to carefully analyze the current status of a competitor, its competitive position in the industry, potential competitors and strategy use and purposes competitor in the short and long term.

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