Business competitiveness is a term that is given to the ability of a company or business to produce and sell its own products, which have the quality of others that exist in the market with the same price or below it, and in this way increase the performance of the resources consumed in the production.
This competitiveness is found directly linked to business effectiveness and the capacity it has to comply with the established performance process conditions, is related to the factors and policies, included in the networks of entrepreneurship and innovation that can determine the level of production, the potential to attract work, value and the return on investment of company strategies. business.
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This competitiveness is often complex, as there are many ways to compete. The value of the products is one of the many current strategies, like the level of training of the employees, the technology, cost of production, infrastructure, up-to-date computer systems and innovation capacity, among others.
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Undoubtedly all kinds of business competitiveness strategy, helps to optimize the continuous control of the production operations of a company and in the same way improves the work of the elements that belong to the external context.
In this article you will find:
Factors of business competitiveness
For a company to be competitive, it requires fundamental factors such as the following:
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- Management capacity: refers to the efficiency of the company's manager to show his ability to direct and manage its development.
- Quality and price: it is one of the main factors of competitiveness, since it seeks to balance a good quality product for a lower price.
- Product difference: the company must have the ability to differentiate its own products from the competition or meet the demand of those with dissatisfied consumers.
- Use of technology: it is important that the company adapts to new technologies such as software, machinery, artificial intelligence, advanced tools or telecommuting programs, in order to save time and money through the automation of processes.
- Economic resources: incorporate deposits, investors, cash, bonds or stocks that give the company the opportunity to acquire more liquidity to carry out its projects.
- Human capital: the specialization and training of workers in the company is very important to achieve competitiveness.
- Innovate: the company has to innovate in order to always be one step ahead of the competition and look for new alternatives and efficient solutions in any of the company's areas.
- Business Resources: they are defined as the material or immaterial means that help the company to carry out some projects or production processes efficiently.
Types of business competitiveness
There are various types of business competitiveness that are related to the strategies carried out or agents involved to achieve profitability. This classification is as follows:
Static competitiveness
It is a type of strategy that is based on the equilibrium of prices and seeks to maintain the level of the company within the market, although in some cases it can equal or exceed the supply demand.
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Spurious competitiveness
It is false and temporary due to its establishment in the use of natural resources and is at the expense of labor remuneration, therefore, it is considered as a short competitiveness term.
Systematic competitiveness
It refers to competitiveness where the results of the company are analyzed and the study of micro and macroeconomic variables is carried out. This indicates that the company considers that it can provide certain benefits to its environment and value the efficiency, profitability and the influence of all those involved in the financial system of the company.
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Internal competitiveness
It is the ability of the organization to use its resources appropriately, such as productive resources, personnel management or processes, among others. In this case, the workers or the identification they have with the company also count.
External competitiveness
It refers to the goals achieved by the company in its state of business or in the position it has before the competition.
Authentic competitiveness
Seeks results in the medium or long term through the inclusion of technical advances within the production processes or training and specialization of the workforce.
Dynamic competitiveness
It focuses on price, process or product innovation, as well as optimizing logistics, marketing, customer service and human resources departments.
Best strategies to increase business competitiveness
The objective that every company seeks when implementing a business competitiveness strategy is be prepared as best as possible when facing the challenges of the market where it operates and in turn increase its position. Among the most relevant strategies are:
Develop innovative products
Although innovation requires significant investment, it is important to take risks to create new products. This can be done by creating a totally new product that can innovate and position the brand or by perfecting a product that is already on the market.
Increase customer satisfaction
Most of the companies that have this type of characteristic prefer the strategy that focuses on those who acquire their products, since It is not only about increasing customers, but about optimizing the quality of the product they purchase, which is what really influences their satisfaction.
Lower operating costs
When crises or difficulties arise, it is when they present this type of strategy. Costs can be lowered in a number of ways, without the product quality having to be lowered, as the weapon The main factor before the brand is the value that decreases markedly as the raw material and the process of manufacturing.
In general, business competitiveness It is one of the factors that every company wants, since it has the purpose of the organization to be maintained not only in difficult times, but to develop and last for a long time.
