International competitiveness and competitive advantage - Essay Example

INTERNATIONAL COMPETITIVENESS AND COMPETATIVE ADVANTAGE Here Here INTERNATIONAL COMPETITIVENESS AND COMPETATIVE ADVANTAGE Executive Summary The report regards the two most important terms – the competitive advantage and the international competitiveness. Competitive advantage is defined a set of characteristics, properties of the product or brand that creates for the company definite advantage over its direct competitors. The international competitiveness has been determined as the best system to ensure international competitive advantages and sustained ability to compete successfully anywhere in the world based on international standards as the starting lines of continuous improvement of quality and competitiveness of products, management and organization of work. Three relevant and significant insights have been provided. Competitive Advantage The current state of the global economy development and evolution along with the increasing tendency of its competitiveness is known to be related, primarily, with increasing of the competitiveness of its businesses, the loss of which in the course of economic reforms proved the most significant shortcomings (Lapersonne, 2013). The success of the identifying and forming objectives the competitive advantage are called to improve the industrial competitiveness companies. This fact, however, makes them more dependent on the level of development of methodological approaches to the establishment and effective functioning of the competitive advantage in general (Meyer, Mudambi and Narula, 2010). In accordance with the world practice, the market relations represent the interconnected solution to these problems. In addition to this, the use of these principles guarantees the increase of the competitiveness of the enterprises (Lapersonne, 2013). The main areas of competitive advantage of the organizations security are concentration of resources for the company to predict the actions of competitors, holding the initiative in the competition, software resource potential to achieve the goals, development flexible planning firms in the market by the study effective communication strategies with competitors (Meyer, Mudambi and Narula, 2010). The competitive advantage that in specific markets determines various competitors is a significant factor in climate, or the competitive situation on the commodity market. Competitive advantage is defined a set of characteristics, properties of the product or brand that creates for the company definite advantage over its direct competitors (Meyer, Mudambi and Narula, 2010). Relative superiority have a tendency to assess the comparative state position of the organization in relation to a competitor occupying the best position on the market or its segment (Lapersonne, 2013). It can be external and internal. Each of these two types of factors is called to perform its significant role in the advancement of an organization. This, in its turn, brings the expected outcomes of the work. In order to achieve this top, it is vitally important to follow the necessary rules. The aim (or a mission) should include an original idea, an exclusive sphere of activity, competitive product, a popular brand image, and so on (Lapersonne, 2013). The organizational structure should be based on the goals of the organization tree with horizontal coordination of all job specific product (this approach is generally referred to as a problem-oriented organizational structure) (Siedel and Haapio, 2010). In addition to this, when designing and developing the structures in the information systems the qualitative information and regulatory guidance documents should be to regarded and included (Meyer, Mudambi and Narula, 2010). When a field of activity and suppliers of raw materials, components, equipment, personnel are being selected, it is important to analyze the effect of competition and choose competitive suppliers (Lapersonne, 2013). The approaches to the diagnostics of the competitive environment are known to require not only the analysis of the various methods of competition, but also the study of the image of the product and the image of the organization as well (Lapersonne, 2013). Indeed, reducing the price of its product or service, the organization gets the opportunity to strengthen its position compared to competitors. Increasing the price of a product or service leads to a decrease in the level of its competitive advantage (Siedel and Haapio, 2010). By improving the quality characteristics of the product, the company receives a significant advantage over its competitors, which, in turn can, serve as the basis for the appointment of a higher price (Lapersonne, 2013). If the organization keeps the price of their products at competitive prices of goods, the higher quality, it creates the firm basis for the leadership position in the market, allowing to increase the number of consumers and accordingly the size of the market share occupied by. Since assessment methodology is based on the competitive advantage of the essence of value, which is the source of benefits (tangible, intangible, financial, social and other values), and depends on its content, the origin, the dynamic manifestation, extent and other conditions (Siedel and Haapio, 2010). A specific number of competitive advantages of the organization can in practice comprise of the numerous factors (Siedel and Haapio, 2010). Thus, it is possible to conclude that the larger organization has competitive advantages over the current and potential competitors, the higher its competitiveness, vitality, efficiency, prospects. To do so, it is vitally important to improve the scientific management level, to win new competitive advantages and bolder look to the future. International Competitiveness The modern world of economy is known to be experiencing a wide range of the profound changes. They have a tendency to manifest into the process of accelerating globalization of the market, the development of multi-dimensional competition, transformation of business processes that detects obsolescence of the traditional principles and guidelines for structuring and development of the subjects of the world and national economies (Liao, 2005). However, globalization and competition create not only purely economic problems, but also a great amount of the opportunities for producers: constant innovation, the unprecedented pace of development today, the most competitive industries (electronics, mechanical engineering, etc.). For instance, Japan and other industrialized countries due to increased domestic and international competition (Liao, 2005). Comparative evaluation of competitiveness, identifying the strengths of the successful competitors, possible to determine the weaknesses of national actors of the world economy, to specify targets for economic development (Taylor, 2006). The concept is for the international competitiveness of the Russian economy and the world a new and quite complex (Liao, 2005). While there is no universally accepted definition of its content and as a source of understanding of the acceleration of economic development, especially in the resource-based. Sustainable competitiveness of economic agents and of their products remains one of the most difficult problems in the world economy (Taylor, 2006). Its solution is complicated by the fact that the different countries experience in this area can hypothetically be clearly small and is reduced mainly to technical and economic assessments of the exported products or industries in general, without a certain level of international competitiveness and cost-effective system of measures lo improve (Liao, 2005). All of the existing domestic and foreign competitiveness of the weak solution to the problem reflects the dynamics and character occurring in the world of fundamental changes in the global and national economies associated with the exacerbation of international competition, leading to different forms, in different ways and at different levels of the economy. The competitiveness of companies in international business can have its potential ability realized in order to involve in economic circulation of own or borrowed assets that could become a competitive advantage (Taylor, 2006). The term of the competitiveness of the national economy is frequently understood as a concentrated expression of economic, scientific, technical, industrial, organizational, administrative, and other features to be implemented in products and services, successfully resisted foreign counterparts on the domestic and foreign markets; as well as the competitiveness of the social state and the political and legal system of the country and regulation for the material well-being of society (Taylor, 2006). The international business often overlooks the need for accelerating the achievement and maintenance of world-class competitiveness, handling its planned capacity, produce real benefits for its direct participants gain market expansion and social realization (Taylor, 2006). Therefore, the international competitiveness is generally defined as relative (with changes leading competitors and markets) and systematically identified, formed by and develops inside a stable ability of the producers to methodically integrate their own competitive advantages for the rapid and cost-effective provision of international excellence and the planned timing of leaders of the world market for the benefit of a meet. This usually takes place via the framework of legal, ethical and environmental standards), the material and social needs (employees, customers, investors, owners). The international competitiveness here is the best system to ensure international competitive advantages and sustained ability to compete successfully anywhere in the world based on international standards as the starting lines of continuous improvement of quality and competitiveness of products, management and organization of work (Taylor, 2006). The contribution of manufacturing resources in strengthening the competitive advantages of producers and the country is determined not so much their reserves, volume, cost, availability, as their structure, quality and efficiency of use, the rate of their establishment, improvement and adaptation to the needs of the national and world economy. Insights Throughout the world, the company achieved leadership on an international scale, use strategies that differ from each other in all respects. However, while every successful company applies its own strategy, the underlying principles of nature and evolution of all successful companies are basically the same. Companies achieve competitive advantages through innovation. They learn new methods of achieving competitiveness or find better ways to compete with older methods. Innovation can occur in new product design, the new production process, a new approach to marketing, or new technique training workers. Thus, it becomes possible to single out the thee insights of the competitive advantage and international competitiveness which represent the greatest significance: the state of demand which presupposes the nature of domestic demand for the industry of the product or service; the related and supporting industries which determine the presence or absence branches, suppliers or other related industries which are internationally competitive in the country; and sustainable strategy, structure and rivalry which contribute to the existing conditions in the country of creation, organization and management of companies, as well as the nature of domestic competition. These three insights contribute to the emergence of the national environment in which companies are born and trained to compete in the global meaning of the word, i.e. in the international arena. Each of them – and all of it as a whole – illustrates the essential ingredients for success in competition on an international scale: the availability of resources and skilled labor necessary to provide a competitive advantage in the industry; in addition to this, the information forming opportunities that companies perceive and the directions in which they employ their resources and qualified personnel; targets owners, managers and individual employees of the company; and, most importantly, the company experienced pressure to it to make investments and to innovate. Bibliography Lapersonne, A. (2013). Managing Multiple Sources of Competitive Advantage in a Complex Competitive Environment. Future Studies Research Journal: Trends and Strategies, 5(2), pp.221-251. Liao, J. (2005). Corporate restructuring, performance and competitiveness: an empirical examination. Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness, 15(1), pp.33-48. Meyer, K., Mudambi, R. and Narula, R. (2010). Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple-Embeddedness. Journal of Management Studies, p.no-no. Siedel, G. and Haapio, H. (2010). Using Proactive Law for Competitive Advantage. American Business Law Journal, 47(4), pp.641-686. Taylor, R. (2006). Multi-state international catalog exhibitions: a South America experience. Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness, 16(1), pp.83-91. Read More