The essence and factors of formation of competitive advantages in an enterprise. Competitive advantages of a company Groups of factors influencing competitive advantages
In our work, we will broadly divide the personnel into three categories: worker, specialist, manager.
The manifestation of competitive advantages is determined by external or internal conditions. A specialist working in a competitive environment will strive to be competitive himself. However, the extent to which he will be competitive in the relevant environment is determined by the values of the specialist himself. As a rule, external conditions are decisive in achieving competitiveness. In accordance with such laws of the organization as the law of least and the law of proportionality, a specialist with the least competitiveness will pull up (strive) to specialists with the highest competitiveness.
Internal, or individual, competitive advantages of personnel by their nature can be divided into hereditary and acquired.
We consider the following to be the hereditary competitive advantages of personnel:
Abilities (giftedness, talent, genius, ability for a given type of activity);
Temperament;
Physical data.
We include the following among the acquired competitive advantages of personnel:
Business qualities (education, special knowledge, skills and abilities);
Intelligence and culture;
Purposeful motivation of activity (ability to formulate personal goals and goals of the team);
Character (attitude to work, to others, to oneself, to things);
Emotionality (the ability to manage your emotions, will, stress resistance, envy, etc.);
Sociability, communication skills;
Organization;
Age limit, etc.
Classifying the competitive advantages of personnel as hereditary or acquired is to some extent conditional. For example, the ability to perform a given type of activity develops as experience in this area is gained.
The remaining aspects of ability: giftedness, talent, genius - are largely hereditary. The physical characteristics of a person are, on average, determined by hereditary factors. An individual, through training and other means, can improve his hereditary parameters.
The given list of competitive advantages of personnel is indicative; In a particular team, they will, of course, be clarified. The list can be called typical for all categories of workers. When considering the benefits of a particular category of employees, these benefits must be consistent (linked) with the mission and strategy of the social or production system in which the employee works.
Product, service
Fundamentally, systems for ensuring the competitiveness of goods and services differ slightly from each other. These differences will be determined on a case-by-case basis. Therefore, in this work we will use the single term “product”.
The competitiveness of a product is determined by four integral static indicators of the first level (at the zero level - competitiveness): quality of the product; its price; costs of operation (application, use) of the product during its life cycle; quality of product service.
The values of the listed four integral indicators of a product’s competitiveness depend on the strength of the influence of external and internal factors of the product’s competitive advantage. If it is necessary to increase the accuracy of calculations, the competitiveness of a product can also be assessed taking into account dynamic factors.
We consider the following to be dynamic factors of competitiveness:
Time factors: reducing the life cycle of a product, getting ahead of competitors in solving any problems, etc.;
Synergy factors: level of organization and parallelism of work performed, proportionality of partial processes, their consistency and rhythm, etc.;
Factors of uncertainty in the external environment of the organization: instability of the political situation, uncertainty of the tax system, precarious financial condition; tension in the world, the degree of deterioration of fixed production assets, crime and corruption of society, the low level of the legislative framework, etc.;
Factors of unethical partners: violation of contracts and agreements, damage to the organization due to unprofessionalism and dishonesty of partners, industrial espionage, etc.
The more streamlined the market mechanism, the less dynamic factors will influence competitiveness. For such conditions, their weight can be about 0.2, the remaining 0.8 share of the product’s competitiveness will be determined by static factors. For conditions of a transition economy, the influence of dynamic factors will be greater, for example 0.5.
Thus, to increase the competitiveness of objects, it is necessary to improve static and dynamic factors in order to optimize them and manage the competitive advantages of objects.
In table Table 11.2 provides a list of the main external factors of a product’s competitive advantage and the direction of their influence. To assess the influence of each factor of a product’s competitive advantage, a very serious amount of work is required; the methodology for performing most of them is outlined in the work. Objectively, these factors are determined by the external environment of the system.
Table 11.2. List of external factors of the competitive advantage of a product and the direction of their influence on competitiveness
External factors of the competitive advantage of a product, determined by the external environment of the system |
|
With an increase in this indicator, all integral and partial indicators of product competitiveness improve |
|
Level of competitiveness of the region (subject of the federation) |
|
Level of competitiveness of the organization producing the product |
|
The strength of competition at the output of the system |
Increasing the strength (intensity) of competition increases the competitiveness of a product |
The strength of competition at the input of the system, among suppliers of raw materials, materials, components and other components |
|
The strength of competition among substitute products |
|
New needs emerge |
Reduces the competitiveness of the manufactured product |
The level of organization of production, labor and management among intermediaries and consumers of goods produced by the system |
Increasing the level of organization improves the competitiveness of a product |
Activity of contact audiences (public organizations, consumer societies, media, etc.) |
As the activity of contact audiences increases, the competitiveness of the product increases |
In table Table 11.3 provides a list of the main internal factors of the competitive advantage of a product and the direction of their influence on competitiveness. The impact of the listed internal factors of competitive advantage on the competitiveness of a product can be measured based on the approaches outlined in the above-mentioned source.
Table 11.3. List of internal factors of competitive advantage of a product and the direction of their influence on competitiveness
Internal factors of product competitive advantage determined by the system |
The direction of influence of the factor on the competitiveness of the product |
Patentability (novelty) of the design (structure, composition) of the product |
As the patentability of a product increases, its competitiveness increases |
Rationality of the organizational and production structures of the system |
The structure of the system must comply with the principles of rationalization of production structures and processes. Then it will help improve the competitiveness of the product |
Competitiveness of system personnel |
Increasing the competitiveness of personnel improves the competitiveness of goods |
Progressivity of information technologies |
With an increase in the share of advanced technologies, the competitiveness of the product increases |
Progressivity of technological processes and equipment |
|
Scientific level of the management system |
With an increase in the number of applied scientific approaches, principles and modern management methods, the competitiveness of the product increases |
Validity of the system's mission |
The mission of the system should be focused on achieving the competitiveness of the system and its products |
Organization
We divide the factors of an organization’s competitive advantage into external ones, the manifestation of which depends to a small extent on the organization, and internal ones, almost entirely determined by the organization’s management.
This paper identifies typical competitive advantages characteristic of a hypothetical organization. A specific Russian organization may have only a few of the listed competitive advantages.
In table 11.4 provides a list of external factors of an organization’s competitive advantage.
Table 11.4. List of external factors of an organization’s competitive advantage
External factors of an organization's competitive advantage |
What needs to be done to achieve and use a competitive advantage in Russian conditions |
Country competitiveness level |
Open an organization in a country with a high level of competitiveness or increase the competitiveness of your country |
Industry competitiveness level |
Take measures to improve the competitiveness of the industry or leave it for another, more competitive industry |
Level of competitiveness of the region |
Take measures to increase the competitiveness of the region or leave it for another, more competitive region |
Government support for small and medium-sized businesses in the country and regions |
Rework the legislative framework for small and medium-sized businesses, focusing it on efficient and law-abiding business conduct |
Legal regulation of the functioning of the economy of the country and regions |
Rework the legislative basis for the functioning of the economy as a system of codes and rights (competition, antimonopoly, administrative, labor, etc.) |
Openness of society and markets |
Development of international cooperation and integration, international consolidated competition |
The scientific level of economic management of a country, industry, region, etc. |
Application of economic laws of the functioning of market relations, laws of organization in statics and dynamics, scientific approaches to the management of various objects, management methods at all levels of the hierarchy. If the leader does not master scientific methods, the performer is unlikely to master them |
National system of standardization and certification |
Intensification of work in this area, strengthening control over compliance with international standards and agreements, legal support for harmonization with the international system |
State support for human development | Increase spending on education, healthcare and social services in the Russian budget tenfold |
State support for science and innovation | Improve the transfer system (development of innovations, their innovation and diffusion), increase budget expenditures on science tenfold |
Quality of information support for management at all levels of the hierarchy | Creation of unified national information centers in areas or sectors of the national economy that meet the latest science and technology |
Level of integration within the country and within the global community | Russia's entry into international organizations and development according to international laws |
Tax rates in the country and regions | Review the tax system, align and unify rates if possible |
Interest rates in the country and regions | Review the interest rate system at all levels of management and investment areas |
Availability of available resources and control over them | Increase the share of state-owned resources extracted from the bowels of the Earth to no less than 50%. To debug state control over the expenditure of resources |
System of training and retraining of management personnel in the country | The receipt of international, state and sponsorship investments in this area and their expenditure must be under government control and produce specific results. |
Climatic conditions and geographical location of the country | Protect the natural environment, improve the quality of the habitat and develop competitive advantages in this area |
Level of competition in all areas of activity in the country | Comprehensively form and implement market relations and a competitive environment |
The internal competitive advantages of the organization are achieved and implemented by the staff, among whom managers play a special role. We propose to divide the internal competitive advantages of the organization into six groups:
Structural, formed during the design of the organization;
Resource generated during the design, operation and development of the organization;
Technical, formed during the design, functioning and development of the organization;
Managerial;
Market;
Efficiency.
In table Table 11.5 provides a list of internal factors of an organization’s competitive advantage.
Table 11.5. List of internal factors of an organization’s competitive advantage
Internal factors of an organization's competitive advantage |
What needs to be done to achieve and use competitive advantage |
Structural Production structure of the organization Mission of the organization Organizational structure of the organization Specialization and concentration of production Level of unification and standardization of manufactured products and components of production Accounting and regulation of production processes |
Design organizations based on flexible production systems, automated modules and systems The mission must contain an original idea, an exclusive field of activity, a competitive product, a popular brand, etc. The organizational structure should be built on the basis of the organization’s “tree of goals” with horizontal coordination of all work by the manager for a specific product (problem-target organizational structure) Carry out organization design based on an analysis of the principles of rationalization of structures and processes, using modeling methods Perform the entire range of work on unification and standardization of various objects in order to organize them by standard sizes, types, methods, etc. Include in structure Organization of means of automation of accounting for compliance with the principles of proportionality, continuity, straightness, parallelism, and rhythmicity of the flow of individual processes |
Staff Information and normative methodological management base The strength of competition at the “output” and “input” of the system |
Constantly select personnel, improve their qualifications and create conditions for promotion, motivate high-quality and effective work in order to ensure the competitiveness of personnel When designing and developing structures, information systems should include high-quality information and regulatory and methodological documents When choosing a field of activity and suppliers of raw materials, materials, components, equipment, personnel, etc., analyze the strength of competition and select competitive suppliers |
Resource Suppliers Access to high-quality cheap raw materials and other resources Accounting and analysis of the use of all types of resources at all stages of the life cycle of large objects of the organization Functional and cost analysis of manufactured products Optimizing resource efficiency |
Constantly analyze the competitive environment, the number of suppliers, the strength of competition between them, their competitiveness to select the best Monitor market parameters so as not to miss possible access to high-quality and cheap raw materials Encourage such analysis, since in the future, saving resources among consumers of their goods will be a priority activity of the organization, a factor of competitive advantage Encourage such complex but effective analysis Support efforts to optimize resources, since the global goal of competition is to save resources and improve the quality of life |
Technical Patented product Patented technology Equipment Product quality |
Continue working to increase the number of inventions and patents Increase the share of advanced technological equipment and reduce its average age Apply modern methods of quality control and stimulation to maintain a competitive advantage |
Managerial Managers Analysis of the implementation of organizational laws Organizing the supply of raw materials, materials, and components according to the “just in time” principle Functioning of the management system (competitiveness) of the organization Functioning of the quality management system in the organization Carrying out internal and external certification of products and systems |
Increase the share of competitive managers Based on the results of the analysis of the organization’s laws, measures should be developed and implemented to improve processes Maintaining this competitive advantage requires high discipline throughout the entire material flow cycle. In the context of rising costs of production space, strengthening supply discipline is becoming an effective area of competition Further maintaining this competitive advantage requires highly qualified personnel and the use of scientific management methods The quality management system must comply with international standards ISO 9000 series (version 2000), scientific approaches and principles of quality management Maintaining this advantage is possible if the products are highly competitive |
Market Access to the market for resources needed by the organization Access to the market of new technologies Leading position in the product market Exclusivity of the organization's product Exclusivity of distribution channels Effective system of sales promotion and after-sales service Forecasting market infrastructure pricing policy Organizational efficiency Profitability indicators (based on profitability indicators of products, production, capital, sales) Intensity of capital use (by turnover ratios of types of resources or capital) Financial stability of the organization's functioning Share of exports of knowledge-intensive goods |
To obtain this advantage, it is necessary to study the parameters of the markets at the “input” of the system (organization), and to maintain it, monitor the market infrastructure To maintain this main advantage, it is necessary to constantly take measures to maintain all the competitive advantages of the organization This advantage is achieved by the high patentability of products, which, in turn, ensures their competitiveness compared to substitute products This advantage is achieved by a high level of logistics and is maintained by competitive marketers and sales employees To maintain an advantage, highly qualified advertising workers and sufficient funds for it are required. The advantage is achieved by highly qualified economists, psychologists and managers of the organization and, of course, the necessary means To maintain this competitive advantage, you need to analyze the laws of demand, supply, competition, etc. for your products, have a high-quality information base and qualified specialists Economic indicators determine the quality of the organization’s functioning in all aspects and areas. Therefore, to maintain its competitive advantages, the organization must increase the scientific level of management Levels of profitability, intensity of capital use and financial sustainability of the organization are determined individually The higher the strength of competition in the industry, the lower the profitability and cost of goods will be, but the higher the intensity and quality of goods Competition is also a factor in increasing the efficiency of use of all resources |
Listed in table. 11.4 and 11.5 external and internal factors of competitive advantage are the maximum possible for an abstract organization. For a particular enterprise, the number of competitive advantages can be any.
The value of each benefit can be quantified and analyzed over time. However, it is hardly possible to integrate all the benefits into a single indicator. In principle, the more competitive advantages an organization has over current and potential competitors, the higher its competitiveness, survivability, efficiency, and prospects. To do this, it is necessary to increase the scientific level of management and gain new competitive advantages based on an exclusive approach.
Industry, region, country
The competitive advantages of an industry are in many ways similar to the competitive advantages of an organization within that industry.
Thus, the external competitive advantages of the industry include:
High level of competitiveness of the country;
Active government support for small and medium-sized businesses;
High-quality legal regulation of the functioning of the country’s economy;
Openness of society and markets;
High scientific level of economic management of the country;
Harmonization of the national standardization and certification system with the international system;
Appropriate government support for science and innovation;
High quality information support for country governance;
High level of integration within the country and within the global community;
Low tax rates in the country;
Low interest rates in the country;
Availability of accessible and cheap resources;
A high-quality system of training and retraining of management personnel in the country;
Good climatic conditions and geographical location of the country;
High level of competition in all areas of activity in the country, etc.
We consider the following internal competitive advantages of the industry:
High demand for goods in the industry;
Optimal level of concentration, specialization and cooperation in the industry;
Optimal level of unification and standardization of industry products;
High proportion of competitive personnel in the industry;
High-quality information and regulatory and methodological management base in the industry;
Competitive suppliers;
Availability of access to high-quality cheap raw materials and other resources;
Carrying out work to optimize the efficiency of resource use;
High level of radical innovations (patented goods, technologies, information systems, etc.);
Competitive managers;
Functioning of a system for ensuring competitiveness in industry organizations;
Certification of products and systems;
Exclusivity of the industry product;
High efficiency of industry organization;
High share of exports of knowledge-intensive goods;
High proportion of competitive organizations and products in the industry, etc.
The stability, efficiency and competitiveness of organizations, enterprises, firms, companies, institutions, etc., located in the region depend on the validity of the structure and quality of functioning of individual sectors of the region’s infrastructure (in this work, by region we mean the republic, territory, region, city).
The competitive advantages of the region are determined by the following groups of factors:
The competitiveness of the country the region belongs to;
Natural-climatic, geographical, environmental and socio-economic parameters of the region;
Entrepreneurial and innovative activity in the region;
The level of compliance (lag or advance) of the region’s infrastructure parameters with international and federal standards;
The level of international integration and cooperation of the region. Based on these groups of factors, each region (or a third party) can formulate its competitive advantages and advertise them in the media to attract investment in their industries.
A country's competitive advantages can be:
Significant expenditures from the state budget on R&D (for example, in the USA in 2000 - 3.5% of GDP);
Significant investments in human development (education, healthcare, social needs);
Stability of the country's political and legal system;
Share of GDP per capita;
High life expectancy;
High efficiency of resource use;
Optimal export;
Low inflation;
Availability of natural resources and favorable climate, favorable geographical location of the country;
Significant share of competitive firms;
Competitiveness of labor resources;
Flexibility of the financial system;
Dynamics of the domestic market;
Absence of excess government debt;
Highly educated population of the country;
Strong competition in all areas of activity based on knowledge;
Openness of the country, high level of international integration and cooperation;
High quality of infrastructure of markets and regions (subjects of the Federation);
Low tax and customs rates;
High business culture in the country;
High level of information support for governing the country.
In modern economic literature devoted to the problems of survival and strategic success of firms in a highly competitive environment, considerable attention is paid to the factors of enterprise success, in particular key competencies and competitive advantages.
How is competitive advantage created? Initially, a firm develops a competitive advantage by recognizing or discovering new and better methods of competing in an industry and bringing these methods to the market. This is a kind of innovation in competition. If the opponent loses, or is unable or unwilling to respond to these actions, such innovations change the schedule of competitive forces in the market. Firms that are open to innovation can have significant competitive advantages, especially in industries where there are significant economies of scale or where consumers tend to switch between different manufacturers.
Competitive advantages are various features of any of the areas of the company's activity, with the help of which the enterprise has an advantage over its competitors in achieving its main goal.
The topic of competitive advantage has been studied by many scientists for many decades. These are people like T.B., Kharchenko, V. Shkardun, G.R. Chupik, I. Kolomoets, A.V. Voychak, R.V. Kamyshnikov and others. Each of them had his own personal opinion regarding the definition of the essence of competition itself, its relationship with other economic categories, its impact on the activities of the enterprise, and, ultimately, the very concept of “competitive advantage.”
The most typical sources of innovation that can change the balance of competitive forces are the following:
New technologies.
New or changed consumer needs
Changes in the cost or availability of resources.
Emergence of new segments.
Changes in legislative regulation.
The competitive advantages of an enterprise according to their sources can be divided into internal and external. Internal are the characteristics of the internal aspects of the enterprise’s activities that exceed the similar characteristics of priority competitors. External competitive advantages are those that are based on the ability of an enterprise to create more significant values for consumers of its products, which creates opportunities to better satisfy their needs, reduce costs or increase the efficiency of their activities. It should be noted that it is external competitive advantages, on the one hand, that orient the enterprise towards the development and use of certain internal advantages, and on the other hand, they provide it with a stable competitive position, since they focus on the targeted satisfaction of the needs of a specific group of consumers. The following types of internal and external competitive advantages of an enterprise can be distinguished.
Among the internal competitive advantages:
production - labor productivity, cost-effectiveness, rational operation of fixed assets, provision of material and technical resources;
technological - modernity, perfection, flexibility of technological processes, use of scientific and technological progress;
qualifications - professionalism, skill, activity, creativity of personnel, propensity for innovation;
organizational - modernity, progressiveness, flexibility, structure of the existing organizational structure;
managerial - efficiency and effectiveness of the current management system, efficiency of working capital management, quality, production, purchasing and sales processes, effectiveness of the personnel motivation system;
innovative - systems and methods for the development and implementation of new technologies, products, services, the availability and implementation of know-how;
hereditary - market culture of the enterprise, traditions, history of development;
economic - availability of sources of financing, solvency, liquidity, profitability, profitability;
geographical - location, proximity to sources of material and human resources, sales markets, transport routes and distribution channels.
The external competitive advantages of the enterprise include the following:
information - the data collection and processing systems operating at the enterprise, the degree of awareness of the enterprise about the state and trends of market development, the action of forces and conditions of the surrounding business environment, the behavior of consumers, competitors and other economic entities;
constructive - technical characteristics of the product, its design, packaging;
qualitative - the level of quality according to consumer assessments, compliance with national and international standards;
behavioral - the degree to which the marketing philosophy is disseminated among the enterprise’s employees, the focus of its activities on meeting the needs of consumers of specific target markets;
market conditions - market conditions of activity, competitive environment (number and behavior of competitors, severity of competition);
service - the level and quality of services provided by the enterprise;
image - general perceptions of consumers about the enterprise and its products, fame;
price - the level of market power of the enterprise and the possibility of changing prices;
sales - order portfolio, methods and methods of product distribution;
communication - channels and methods of disseminating information about the enterprise, the availability and use of feedback.
Factors of competitive advantage can be tactical and strategic. The tactical factor of competitive advantage is understood as a specific component of the external or internal environment of the company in which it is superior or will prevail in the near future. A strategic factor of competitive advantage can be a specific component of a company’s external or internal environment, in which it can get ahead of competitors after fulfilling in the future specific conditions that determine the enterprise’s advantage in this component compared to competing firms.
Competitive advantages can take various forms depending on the specifics of the industry, product, and market. When defining competitive advantages, it is important to focus on the needs of consumers and make sure that these advantages are perceived by them as such. Otherwise, it may turn out, for example, that the company considers itself well-known in the local market and does not spend money on advertising, and consumers do not have information about this company. This situation is typical for many domestic enterprises.
It should be noted that the competitive advantages of an enterprise in the industry are also determined by the breadth of the target market. Therefore, before choosing one of the general strategies, an enterprise must identify a number of limiting factors:
In this case, the enterprise can choose a mass market or a narrow market niche. By combining target markets with core strategies, the enterprise expands the scope of its strategy choices. When cost minimization and product differentiation strategies are aimed at the mass market, they are called cost leadership and product differentiation, respectively. But when these same strategies are aimed at a market niche, they are called focusing. The choice of a specific competitive strategy significantly depends on the strategic potential of the enterprise and the possibilities for expanding its resources. It is the internal environment of the enterprise that largely determines the possibility of implementing the chosen strategy.
The nature and sources of advantage are of utmost importance. How long a competitive advantage can be maintained depends on three factors. The first factor is determined by the source of the advantage. Low-ranking advantages, such as cheap labor or raw materials, can be obtained quite easily by competitors. They can copy these advantages by finding another source of cheap labor or raw materials, or they can nullify them by producing their own products or getting resources from the same place as the leader. Higher-order advantages (proprietary technology, differentiation based on unique products or services, a firm's reputation based on enhanced marketing efforts, or close relationships with customers that are strengthened by the financial inconvenience of changing suppliers) can be retained over a longer period of time and have certain characteristics. peculiarities. First, in order to achieve such advantages, greater skills and abilities are required - specialized and better trained personnel, appropriate technical equipment and, in many cases, close relationships with major clients. Second, high-order benefits are usually possible through early and intensive investment in production capacity, specialized training, or marketing.
List of used literature:
1. Azoev G.L., Chelenkov A.P. Competitive advantages of the company. - M.: JSC Printing House "NEWS", 2000.
2. Klimenko S.M., Omelyanenko T.V., Barabas D.O., Dubrova O.S., Vakulenko A.V. Management of enterprise competitiveness. - K., 2006.
3. Diagnostics of the confectionery sector. Information from the marketing research company InMind on the preparation of the BIZPRO project. - Zhovten 2006.
4. Bazilyuk Ya.B. Competitiveness of the national economy: essence and mental security: Monograph. - K.: NISD, 2002. - 132 p.
5. Best M. New competition. Industrial development institutes. - M.: TEIS, 2002. - 356 p.
6. Tsarenko O. V. Effective mechanisms for the economic growth of light industry in the regions // Investments: practice and evidence. - 2008. - No. 24. - P. 28-32.
7. Chernenko S.O. Competition and efficiency of commodity markets in Ukraine: Monograph. - K.: Bibliogr, 2006. - 171 p.
8. Voychak A.V., Kamishnikov R.V. Competitive advantages of enterprise: essence and classification // Marketing in Ukraine. - 2005. - No. 2. - P. 50-53.
9. Kolomiets I.F. Increasing the level of competitiveness of enterprises in the system of internationalization factors // Competition. - 2007. - No. 3. - P. 16-26.
10. Chupik G.R. Scientific approaches to the identification of the categories “competition” and “competitiveness” // News of Lviv KA. - 2006. - No. 22. - P. 55-58.
11. Shkardun V. Integral assessment of the competitiveness of an enterprise // Marketing. - 2005. - No. 1. - P. 38-50.
Shnypko O. Policy of promoting competitiveness: evidence of the guilty countries and Ukraine // Economist. - 2006. - No. 8. - P. 33-35.
Kutuzova T.Yu. General Director of RBS-Consulting LTD (comprehensive marketing support for business). Candidate of Economic Sciences, Associate Professor of the Department of Marketing, Moscow Academy of Entrepreneurship under the Moscow Government
Chapter from the book “Marketing Management”, publishing house “Ves Mir”
- Gearbox with a low degree of stability. This type of competitive advantage is easily accessible to competitors. For example, a competitive advantage in the cost of labor or raw materials, economies of scale from the use of technology, equipment, etc.;
- A gearbox with an average degree of stability. It is advisable to include competitive advantages maintained over a longer period of time into this type. For example, patented technology, differentiation based on unique products or services, company reputation, established product sales channels. Achieving such benefits requires intensive and long-term investment in production capacity, R&D and marketing research, and specialized personnel training;
- Gearbox with a high degree of stability. This type of competitive advantage requires a combination of large capital investments in innovative projects with high quality of their implementation.
You can gain access to innovations in a market economy by purchasing them on the market. However, this path dooms the so-called catch-up development, since, as a rule, not the most advanced new products enter commercial circulation. The buyer of a new technology receives a number of advantages: he does not spend money on developing the discovery, avoids the risk of implementing R&D, and reduces the time for introducing the invention into production.
The greatest benefits are received by enterprises that choose to finance their own in-house developments or establish control over developments outside the company (agreements with research institutes, universities, financing of “venture firms”, etc.) (Table 1).
Table 1. Factors of short-term and long-term competitive advantage
| Factors that create temporary competitive advantage | Factors of long-term competitive advantage | Competitive advantages based on competencies |
|---|---|---|
Access to high-quality cheap raw materials Supplier Competitiveness Available know-how – secrets of competitors Alliances Favorable legislation Reducing the tax burden Lobbying opportunities (relations with government authorities) Climatic conditions Geographical position |
Consumer value:
|
Focus on “consumer direction” Anticipating new needs Strategic flexibility Speed of business adaptation |
However, the formation of a competitive advantage today in many companies occurs in conditions of internal or external instability. In conditions of rapid response to a crisis situation, there are no opportunities to form long-term strategic alternatives, therefore it is necessary to classify strategic and tactical factors that allow increasing the competitiveness of an enterprise in a competitive environment (Table 2).
Table 2. Classification of the main factors that shape the competitive position of a manufacturing enterprise in the market
| Classification of competitiveness factors | Strategic factors | Tactical factors |
|---|---|---|
| Breadth of market coverage by organized sales | Geographic expansion | Development of regional production and logistics centers |
| Organizing the work of regional sales representatives, improving the quality of their work (training) | ||
| Achieving optimal quantity and quality of distribution in target regions (optimal density of product representation) | ||
| An effective enterprise “offer” model | Improving the assortment list | Optimization of the assortment list and breadth of assortment |
| Research of market needs (real and potential) | ||
| Variety of models/product types | ||
| Opportunities and activity in developing new products | Number of new products | |
| Increasing quality levels | Level of product quality compared to competitors | |
| Compliance of the company's pricing policy with consumer needs | Price level compared to competitors | |
| Improving the level of service | Increasing the efficiency of order formation and tracking | |
| Effective cost management | Efficient inventory management | Optimization of raw materials list |
| Optimization and strict control of inventory levels | ||
| Efficient logistics | Optimization of traffic flows | |
| Application of leading technology | Creating an effective import substitution mechanism | Possibility of innovation in the production process / Number of innovations |
| Training | ||
| Improvement of technology | Increasing the level of product innovation | |
| Favorable image of the manufacturer | Manufacturer's fame | |
| Product branding | TM protection | |
| Number of new brands | ||
| Number of famous product brands | ||
| Ability to create effective promotion | Communication Activity Index | |
| Brand awareness |
The entire set of factors can be divided into groups of macro-, meso-, and microenvironment. Macroenvironmental factors include economic, scientific, technical, legal, political, social, international and environmental factors (Figure 2).
Figure 2. An extensive system of tactical factors and indicators that allow assessing the level of competitiveness of an enterprise.
Click on the image to enlarge it
Among the factors of the immediate environment (mesoenvironment), both the factors of the positioning of the enterprise in question in the market and the factors influencing changes in the surrounding competitive environment of the enterprise are of greatest importance. These factors determine the development opportunities of the enterprise, and are significant due to the high dependence of the implementation of the growth strategy in the market on the factors that determine the activities of the immediate environment of the enterprise.
The microenvironmental actors (internal factors of the enterprise) that determine the competitiveness of the enterprise are, first of all, the following: available equipment and technology, controlled quality of raw materials and products, availability of finance and qualified personnel, list of services offered, established system of product promotion channels, distribution.
Example:
According to the calculated competitiveness index, in comparison with the maximum value among the analyzed market participants, it can be stated that Komus Packaging is the undisputed market leader. Based on the calculated indicators, a diagram (polygon) of competitiveness was constructed.
In order to identify the potential for developing the competitive position of an enterprise in comparison with the starting (identified) one, a matrix for assessing the competitive potential of the enterprise is formed, which allows you to visually assess the position of the enterprise based on the integral competitiveness index, taking into account the extrapolation of sales dynamics (Tr) and the market share of each competitor in the market (d ).
Matrix for assessing the competitive potential of an enterprise
It has been established that at the development stage, special attention should be paid to monitoring the position of the competitors of the enterprise being surveyed in terms of business development level (Kashtan and Tefo) and market share (Protek d = 10.7%).
Tumanov K.M. Innovative competitive advantages in shaping the competitiveness of an enterprise. (accessed July 26, 2013)
Rüli E. Resource management as a factor of strategic success // Problems of management theory and practice, 1995, pp. 102–107.
Under competitive advantages factors are understood, the use of which in a specific situation (in a given market, at a certain time, etc.) allows a company to overcome the forces of competition and attract buyers. Different market sectors require different advantages, the achievement of which is the main goal of competitive strategy and an incentive to update all aspects of the company's activities.
As already noted, competitive advantages are created by the unique tangible and intangible assets that the enterprise owns, as well as by those strategically important areas of activity for a given business that allow it to win the competition. The basis of competitive advantages, therefore, is the unique resources of the enterprise, or special competence in areas of activity that are important for a given business. Competitive advantages are realized, as a rule, at the level of business units and form the basis of business strategy.
Competitive advantages must be significant, dynamic, based on unique factors, and transformed taking into account changing consumer demands, national and global situations. Strategic management is sometimes defined as the management of competitive advantage.
From a historical perspective theory of competitive advantage, developed by M. Porter, replaced theories of comparative advantage D. Riccardo. According to this theory, comparative advantages are due to the use by a country or an individual company of factors of production that are in abundance - labor and raw materials, capital, etc. But scientific and technological progress and the globalization of business have led to the fact that advantages based on abundance have become fragile, and the concentration of attention on them slows down scientifically -technical progress and implementation of its achievements.
Therefore, comparative advantage has been replaced by a new paradigm - competitive advantage. This means, firstly, that the advantages are no longer static, they change under the influence of the innovation process (production technologies, management methods, methods of delivery and marketing of products, etc. change). Therefore, maintaining a competitive advantage requires constant innovation. Secondly, the globalization of business forces companies to take into account not only national, but also international interests.
M. Porter's theory of competitive advantage is based on the concept of a value chain, which considers a company as a set of interrelated activities: core (production, sales, service, delivery) and supporting (personnel, supply, technology development, etc.).
Moreover, the company not only carries out a chain of such activities, but at the same time it is itself an element of a large network formed by the interweaving of chains of other companies on a national and even global scale.
The advantages, according to M. Porter, largely depend on the clear organization of such a chain, the ability to extract benefits from each link and give customers some value at a lower price.
The possibility of this facilitates analysis, which allows us to identify the strengths and weaknesses of the company, assess the competitive position of it and its rivals, optimize the chain itself, and formulate competitive strategies, usually implemented by divisions.
Let's consider classification of competitive advantages.
1. From the point of view of the state at any given moment They may be potential And real(the latter appear only with entry into the market, but ensure the company’s success). Losers usually have no advantages at all.
2.From the point of view of the period of existence competitive advantages can be strategic, lasting for at least two to three years, and tactical, providing ongoing superiority for a period of up to a year.
4. From the source's point of view distinguish between the advantages of high and low rank.
Benefits of a high rank– are associated with the company having a good reputation, qualified personnel, patents, long-term R&D, developed marketing, modern management, long-term relationships with customers, etc. Benefits of Low Rank– are associated with the availability of cheap labor, availability of sources of raw materials, etc. They are less stable because may be copied by competitors.
Competitive advantages can take many forms depending on the specifics of the industry, product and market. When defining competitive advantages, it is important to focus on the needs of consumers and make sure that these advantages are perceived by them as such. The main requirement is that the difference must be real, expressive and significant. B. Karlof notes that “unfortunately, it is all too easy to claim competitive advantages without taking the time to check whether these supposed advantages correspond to customer needs... The result is products with fictitious advantages.”
The following are distinguished: sources of competitive advantage (they may be different in different industries and countries).
1. High supply of production factors (labor, capital, natural resources) and their low cost (the most unfavorable situation for a factor is its high cost).
But today the role of this source is becoming secondary, because competitive advantage based on the abundance or cheapness of production factors is tied to local conditions and is fragile and gives rise to stagnation. The abundance or cheapness of factors can lead to their ineffective use.
2. Possession of unique knowledge (patents, licenses, know-how, etc.), constant contacts with scientific institutions). The use of anticipatory innovations, the rapid accumulation of specialized resources and skills, especially in an accelerated manner, while competitors are passive, can provide market leadership. Competitive advantages that arise from constant improvements and changes are also maintained only through them.
Much innovation is usually evolutionary rather than radical, but often the accumulation of small changes produces a more significant result than a technological breakthrough.
3. Convenient territorial location, possession of the necessary production infrastructure. Currently, low communication costs lead to the fact that the importance of a company's location as a factor of competitiveness, especially in the service sector, is decreasing.
4. The presence of supporting industries that provide the company with material resources, equipment, information, and technologies on favorable terms. For example, an enterprise will be able to stay on the global market only if the supplier is also a leader in its field.
5. High level of national demand for the company's products. It favors the development of the company and strengthens its position in the foreign market. Research shows that leaders always start with an advantage at home and then expand their efforts around the world. Demand is characterized by: a large domestic market (the number of market segments and independent buyers), as well as the rate of its increase. They provide a competitive advantage where economies of scale exist.
6. Possession of comprehensive accurate information about the situation on the market (needs, trends in their changes, main competitors), allowing you to correctly select the market segment and strategy and successfully implement it.
7. Creation of reliable sales channels, accessibility to consumers, skillful advertising.
8. High level of organizational culture, which is in the 21st century. one of the main competitive advantages of any organization. Success in competition is achieved primarily by confrontation not so much with money as with people, so it depends on the coordinated actions of staff and managers.
9. Favorable conditions for the company, image (popularity, customer favor, presence of a well-known brand).
10. Measures of state support for this type of production, communications between management in economic and political circles.
11. The company’s ability to organize efficient production and sales (i.e., the functioning of all elements of the value chain).
12. High quality and wide range of products, low costs, good service organization, etc. They form the most important advantage of the company - the favorable attitude of the consumer towards it.
At the same time, the presence of all types of competitive advantages is usually not required, since obtaining the effect from them depends on the effectiveness of their use. This circumstance is especially important for industries with simple technologies.
Summarizing all types of sources of competitive advantage, M. Porter identifies the determinants that create the business environment where firms in a given country operate, mutually reinforcing each other. He included among them:
1) Specific competitive factors(includes: human, material, financial resources, knowledge, infrastructure).
2) Demand conditions, which must be quickly studied, correctly recognized and interpreted.
3) Presence or absence of related or supporting industries, first of all, suppliers of resources and equipment. Without them, firms cannot satisfy customer needs. Suppliers operating at global standards increase the competitiveness of consumers.
4) The nature of competition. New competitors increase competition, so their entry must be facilitated, because without strong competition, rapid growth leads to complacency.
Life cycle of competitive advantage consists of three phases: formation; use and development; destruction.
Formation competitive advantages are determined by the characteristics of the industry and the intensity of competition and most often occur with significant changes in it. In capital-intensive industries and complex technologies, its duration can be quite significant, so there is a danger that competitors can quickly take retaliatory steps.
The principles for carrying out this process are:
1. constant search for new and qualitative improvement of existing sources of competitive advantages, optimization of their quantity;
2. replacement of low-ranking sources of advantages (for example, cheap resources) with higher-ranking sources, which creates barriers for rivals who are forced to constantly catch up. Low-ranking advantages are usually easily accessible to competitors and can be copied. Higher-ranking benefits (patented technologies, unique products, strong relationships with customers and suppliers, reputation) can be retained longer. But this requires large expenses and constant improvement of the company’s activities.
3. the primary search for competitive advantages in the environment (although it is wrong to focus unilaterally on this alone);
4. continuous improvement of all aspects of the company's activities.
Competitive advantage is always achieved through successful offensive actions. Defensive ones only protect it, but rarely help to find it.
Usage and retention competitive advantages, as well as their creation, occur, according to M. Porter, in close connection with the national characteristics of the country (culture, level of development of related and supporting industries, qualifications of the workforce, support from the state, etc.).
The ability to maintain competitive advantage depends on a number of factors:
1. Sources of competitive advantage. High-ranking competitive advantages last longer and lead to greater profitability, as opposed to low-ranking competitive advantages, which are not as sustainable.
2. Obvious sources of competitive advantage. If there are clear sources of advantage (cheap raw materials, a certain technology, dependence on a specific supplier), the likelihood that competitors will try to deprive the company of these advantages increases.
3. Innovation. To maintain a leading position, the timing of innovations must be at least equal to the timing of their possible repetition by competitors. The innovation process at the enterprise allows us to move on to the realization of competitive advantages of a higher rank and increase the number of their sources.
4. Timely abandonment of a competitive advantage to acquire a new one. Giving up competitive advantage is important to strategy implementation because it creates barriers to imitators. M. Porter gives an example of a company producing medicinal soap, which it distributes through pharmacies. The company refused to sell through stores and supermarkets, and refused to introduce deodorizing additives into soap, thereby creating barriers to imitators. According to M. Porter, the introduction of the concept of “renunciation of competitive advantage” adds a new dimension to the definition of strategy. The essence of strategy is to determine not only what needs to be done, but also what don't do it, that is, in a motivated refusal of an advantage in competition.
Main reasons loss competitive advantages are considered:
§ deterioration of factor parameters of their sources;
§ technological problems;
§ lack of resources;
§ weakening of the company's flexibility and ability to adapt;
§ weakening of internal competition.
Diversification, its content and types.
Diversification(from Latin diversificatio – change, variety)– this is the spread of economic activity to new areas (expansion of the range of products produced, types of services provided, geographical scope of activity, etc.). In a narrow sense, diversification refers to the penetration of enterprises into industries that do not have a direct production connection or functional dependence on their main activities. As a result of diversification, enterprises turn into complex diversified complexes and conglomerates.
B. Karloff notes that the idea of diversification has a long history. It was fashionable in the late 1960s and early 1970s, then replaced by views about the need to concentrate efforts on core areas of business. The reason for this was the processes of globalization of production and other phenomena associated with the effect of economies of scale in production.
Recently, diversification has again become a priority. This is due to the existence of firms “that have large amounts of capital received in their core business areas, and since the opportunities for further expansion in them are very limited, diversification seems to be the most suitable way to invest capital and reduce risk.” But now they are talking about the need for a rational nature of diversification, suggesting that first of all it is important for an enterprise to identify areas that will help overcome its weaknesses.
It is believed that by offering a whole range of goods and services, an enterprise can increase its competitiveness and reduce possible risks through diversification. These and other reasons encourage enterprises to expand their areas of activity by acquiring (absorbing) other companies or starting new types of business. Thus, banking, exchange and intermediary services are merging into a single range of financial services. There is a consolidation of various services within the tourism business. Transportation companies begin to offer life and property insurance services, correspondence delivery, travel services, etc. In the production sector, enterprises acquire control over product distribution channels and sources of raw materials, invest in advertising business, and operate in the financial market etc.
Western experience shows that corporations that do business in dynamic environments must constantly grow in order to survive. There are two basic growth strategies at the corporate level:
§ concentration in one industry;
§ diversification into other industries.
Diversification is associated with such advantages of large enterprises as effect of mass production of homogeneous products. The essence of the diversity effect is that the production of many types of products within one large enterprise is more profitable than the production of the same types of products in small specialized enterprises. However, this pattern is not universal, although it is applicable for a fairly large number of industries. It should be noted that diversification of an enterprise's activities is a form of implementation of corporate strategy. Main commercial purpose diversification is to increase profits by taking advantage of market chances and establishing competitive advantages, but the real ways to gain competitive advantages, and therefore incentives diversifications are different (Fig. 7.1).
Rice. 7.1. Motives for diversification.
Significant savings come from the multi-purpose sharing of enterprise production facilities. Costs are reduced due to the concentration of the distribution network (goods and services are sold through a single network, not necessarily its own). Another significant savings reserve is the intra-company transfer of information, knowledge, technical and managerial experience from one production facility to another. Added to this is the effect achieved through the multifaceted training of workers and the variety of information they receive.
It is believed that diversification should lead to better use of the company’s tangible and intangible resources, including through synergy. On the one hand, it reduces risk by eliminating the enterprise’s dependence on any one product or market, but on the other hand, it increases it, since a risk inherent in diversification appears.
An example of diversification is the activities of a Japanese airline JAL after its release from government control. She defined her mission as “winning a leading position in the integrated sphere of consumer and cultural services.” New areas of business include short-distance air flights, including helicopter flights; recreational services, including hotel management, resort and tourism services; commodity circulation, finance, computer science, education.
In conditions of high saturation of commodity markets, where supply exceeds demand, each product (and the producer and seller behind it) is forced to wage a fierce struggle for consumer preferences. Many products simultaneously offer the same or different ways to satisfy the same customer need at equal or slightly different price conditions. In this situation, consumer preference is given to a product that is defined in marketing as competitive.
In order to identify the essence of the category “competitiveness” of products as such, first of all, it is necessary to take into account that, in relation to the conditions of a market economy, it should be considered from the point of view of the consumer.
Often, the assessment of the competitiveness of a product, reflected in modern economic literature, is based on taking into account only two, albeit integral, indicators - its quality and consumption price.
In practice, the criteria by which a consumer evaluates and selects a product include a much larger number of indicators than price and quality. Therefore, when assessing the competitiveness of a product, it is necessary to take into account not only the consumer’s requirements for its price and quality, but also requirements related mainly to the sphere of concluding a transaction and operating the product, such as prompt delivery, availability of spare parts, organization of service, reputation of the manufacturing country and a specific supplier etc. .
Thus, the marketing concept leads to a broader concept of the real competitiveness of a product, which depends not only on the quality-price ratio and not only on meeting consumer criteria, but also on the competitiveness of the entire marketing activity of the company.
The study of the theory and practice of marketing makes it possible to assert that the main principle for assessing the competitiveness of a product is its comparison with the corresponding needs of the buyer.
The consumer’s costs for satisfying his needs through a product or service consist (add up) of two items:
Purchase costs (sale price);
Expenses associated with the cost of operating the product during its service life. In general, the total amount of these expenses acts for the consumer as the price of satisfying the need (the price of consumption).
The consumption price level appears to the buyer as an integral element of the competitiveness of a product and depends, first of all, on the consumer properties of a particular product.
Thus, competitiveness can be defined as a complex characteristic of a product that determines its preference in the market compared to similar competing products both in terms of the degree of compliance with a specific social need and in terms of the costs of satisfying it, which ensures the possibility of selling this product at a certain point in time at specific market. It follows that competitiveness is determined by the quality and cost features of the product, which are taken into account by the buyer according to their immediate importance for meeting needs.
The competitiveness of a specific product (product) is characterized by a certain set of parameter indicators (Fig. 1.1).
As can be seen from the data in Fig. 1.1., the basis for the competitiveness of a product is made up of two groups of parameters - technical and economic, each of which, in turn, is divided into groups, subgroups and specific parameters.
Fig.1.1.
Note. Source: .
Currently, ensuring competitiveness is of great importance. However, as the understanding of the nature of competitiveness has evolved, a new concept has emerged - “competitive advantage”, which represents any exclusive value that an organization possesses and which gives it superiority over its competitors.
To understand the essence of the concept and its “competitive advantage,” we also give a broader interpretation of it.
Competitive advantages are unique tangible and intangible resources that an enterprise owns that allow it to win the competition; it is the organization’s high competence in any area, which provides the best opportunity to overcome the forces of competition, attract consumers and maintain their commitment to the company’s products. The integral characteristics of a company's competitive advantage are the degree to which it is known or receptive to the company's consumers, attachment to specific conditions and reasons, and susceptibility to the ambiguous influence of many heterogeneous factors. Therefore, in the process of strategic planning, after analyzing the external environment and management analysis of the company in order to determine the competitive advantages of the organization in order to formulate the optimal strategy of the company, it is necessary to carry out a comparative analysis of the strengths and weaknesses of the enterprise with similar characteristics of competitors and assess the degree of awareness and receptivity of the identified strengths of the organization by consumers.
Thus, the success of an enterprise in competition requires the enterprise to develop its distinctive abilities and competencies, allowing it to win the competition for consumer demand. The solution to this problem is also determined by the fact that once achieved successes in the market in the absence of constant and targeted work to increase them will after some time be canceled by the retaliatory actions of competitors, which determines the need to form an appropriate approach to company management, which would not only ensure the process itself adaptation, but also created the conditions for its effective functioning on an ongoing basis. Therefore, strategic planning should consist of creating a comprehensive system for managing the company’s competitive advantages, and an effective strategy should be based on their retention and development (Fig. 1.2.).
Fig.1.2.
Another distinctive characteristic of competitive advantage is its viability and ability to develop. Competitive advantages are not eternal due to two reasons: the constant attempt of individual competitors to imitate them, and due to the turbulence of the external environment (changes in the external environment lead to changes in competitive advantages). This distinctive feature of competitive advantage underlies a company's core competencies, which describe a firm's ability to specialize or produce a unique product. They indicate what the organization can do better than its competitors. If a company knows what its differentiating capabilities are, it can focus on exploiting and developing them without wasting effort in less profitable areas. Core competencies are a source of competitive advantage, and the company's strategy should be aimed at developing these sources. And the success of a competitive strategy does not depend on a single choice of today's key factors, but is the result of cultivating such distinctive organizational capabilities over a long period of time.
The basis of a company's strategic potential is the category of competitive advantages that are difficult to imitate. They identify a competitive advantage that rivals can copy and a sustainable competitive advantage that cannot be copied by competitors. It is preferable for an organization to identify a category of competitive advantages that are difficult to imitate, since due to the constant desire of competitors to copy the distinctive features of the company, its strengths cannot last forever and be completely inaccessible to competitors. But to increase the company’s competitiveness, it is necessary to form and develop such competitive advantages of the enterprise that, if not eternal, could be copied by competitors with a significant investment of time and resources, which, in turn, would give the organization the opportunity to simultaneously develop other distinctive competencies instead of those potentially subject to imitation. Such difficult-to-imitate competitive advantages include the organizational culture of a company; unique characteristics of enterprise management, for example, effective motivational policy, leadership style, clear coordination and control of activities, optimally constructed organizational structure, etc.; distinctive features of the organization’s human resources (highly qualified and rich practical experience of personnel, initiative, originality of thinking, ability to make decisions and bear responsibility for them in non-standard situations, etc.); quality of goods, production, sales and service systems, etc. These may also include higher levels of productivity of production, technical, and commercial personnel, managerial excellence, and strategic thinking at various levels of management, reflected in economic growth.
It should be noted that if the competitive advantages of an organization are protected from imitation by competitors, then they form the “strategic potential of the company.” The “strategic potential of an enterprise” is usually understood as the totality of available resources and abilities for the development and implementation of an enterprise strategy. Accordingly, a strategy based on the strategic potential of the enterprise will be more successful, since such a strategy is more competitive and durable.
The structure of the process of forming competitive advantages that are difficult to imitate is presented in Fig. 1.3. .
Fig.1.3.
The identification of the stage of formation of a company's competitive advantages in the process of strategic planning of an organization is also determined by the focus of this process on determining the meaning of the company's existence and finding ways for the enterprise to fulfill its purpose in the external environment. This relationship is determined by the meaning of the company’s mission itself and the characteristics of this concept. The mission lays the foundation for the formation of a competitive strategy of the enterprise, since it reveals the true functions of the business and sets boundaries for the efforts of the company, setting horizons for its growth. In essence, the formulated mission of an enterprise positions it in the environment, and, accordingly, determines the elements of the company’s environment that influence the possibilities of forming and developing the company’s competitive advantages.
Managing the competitiveness of goods and organizations in modern conditions is carried out on the basis of compliance with the following principles:
Analysis of the mechanism of action of economic laws (the law of supply and demand, the law of increasing human needs, the law of economies of scale, the law of competition, the law of saving time, the law of diminishing returns, etc.);
Analysis of the mechanism of action of the laws of organization of structures and processes (the law of composition for constructing a tree of goals, the laws of proportionality, synergy, self-preservation, development, etc.);
Compliance with the requirements of a set of scientific approaches to management (primarily systemic, integrated, marketing, functional, behavioral, structural, reproductive);
Compliance with the previously discussed principles of managing various objects;
Targeting specific markets and needs;
Application of modern information technologies for system and complex automation of management;
Application of modern methods of analysis, forecasting, standardization, optimization (for example, system analysis, functional cost analysis, dynamic programming);
Focus on quantitative methods of assessment, control and operational management of competitiveness;
Economic and managerial factors of the functioning of an organization should not be included in the formula for assessing the competitiveness of an organization, since managerial factors serve as a condition for ensuring competitiveness, and economic factors are the result of managing the competitiveness of an object (if good work there will be an increase in competitiveness, if bad work there will be a decrease);
Models for assessing the competitiveness of objects must take into account the weight of the factors included in them (indicators, arguments);
The factors (indicators) included in the formula (model) should primarily be specific or relative;
The system for managing the competitiveness of objects should include strategic marketing (the first general function), motivation and regulation (the last general function that establishes feedback from consumers and the external environment to developers and manufacturers of goods).
Between these functions there should be common functions for planning, organizing processes, accounting and monitoring the implementation of plans and operational tasks.
Thus, we can say that the presence, use and expansion of a company’s competitive advantages is the stabilization and development of the company’s business by connecting the company to the resources of the outside world, the mobilization of internal resources through their high-quality reorganization, which ultimately contributes to the successful performance of the company and its improvement competitiveness.