Maintenance of Competitiveness of Productionjavascript

Content:

 

Introduction………………………………………………………………………...3

1. Competitiveness in Economic Science………………………………………….4

                1.1. The concept of competitiveness………………………………….....4

                1.2. Types of Competitiveness…………………………………..............5

                1.3. Indicators of competitiveness of the product.....................................6

               

2. Competitive Products as Economic Factors……………………………………..9

                2.2. Factors determining the competitiveness…………………………...9

                2.3. Quality - the main factor determining the competitiveness………..18

 

3. Ways to improve the competitiveness of goods………………………………..21

3.1. The concept of competitive products and methods of assessment…………...21

3.2. The role of positioning in ensuring the competitiveness of the goods……….24

 

Conclusion………………………………………………………………………...26

Appendix………………………………………………………………………….28

List of used Literature…………………………………………………………….29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction

 

Choosing a theme of this work is due to extreme urgency for all countries of the world economy problems of competitiveness, both the businesses and they create objects (goods or services).

Formation of the potential for businesses to compete and achieve effective results in today's complicated by the need for continuous adaptation to changing conditions, which requires, in turn, search for evidence-based concepts of operation and development of enterprises, improve its competitiveness. Development of these concepts necessitates in-depth study of both the economic competitiveness of the category, its features and characteristics, and the nature of influence of global trends, political factors, the characteristics of the specific historical stage of the process of its formation and improvement. That is, in a market economy, the competitiveness category is one of the key, because it determines the level of success or failure of the enterprise, and increase competitiveness and hence growth of its exports means to improve the lives of the population.

Thus, the theme of the course work is not only relevant, but also has practical significance.

The aim of this study is to determine ways and means of improving the competitiveness of the goods.

Achieving this goal involves the following tasks:

• Theoretical study of the concept of "competitiveness," the study of its nature;

• Identification of factors, criteria and indicators of competitiveness of products;

• Analysis of existing approaches to assessing the competitiveness of products;

• Identification of ways and methods to improve the competitiveness of products;

• Definition of competitiveness on the example of a specific product.

In accordance with the tasks, course work consists of abstract, theoretical section includes 3 main chapters, conclusions, appendix, list of used literature.

When writing a term paper used methods of analysis and synthesis, processing methods and also market research, including methods of expert estimates, the methods of economic and mathematical modeling.

It should be noted a rather high degree of elaboration of the problem under investigation in the scientific literature. Theoretical and methodological basis for the study of the course work are scientific works of domestic and foreign scientists on evaluating and improving the competitiveness of products.

 

 

 

 

 

 

 

 

 

1. Competitiveness in Economic Science

 

1. The concept of competitiveness

 

Competition in economics is a term that encompasses the notion of individuals and firms striving for a greater share of a market to sell or buy goods and services. Merriam-Webster defines competition in business as "the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms." It was described by Adam Smith in The Wealth of Nations (1776) and later economists as allocating productive resources to their most highly-valued uses and encouraging efficiency. Later microeconomic theory distinguished between perfect competition and imperfect competition, concluding that no system of resource allocation is more Pareto efficient than perfect competition. Competition, according to the theory, causes commercial firms to develop new products, services and technologies, which would give consumers greater selection and better products. The greater selection typically causes lower prices for the products, compared to what the price would be if there was no competition (monopoly) or little competition (oligopoly).

Competition is seen as a state which produces gains for the whole economy, through promoting consumer sovereignty. It may also lead to wasted (duplicated) effort and to increased costs (and prices) in some circumstances. In a small number of goods and services, the cost structure means that competition may be inefficient. These situations are known as natural monopoly and are usually publicly provided or tightly regulated. The most common example is water supplies.

Three levels of economic competition have been classified:

The most narrow form is direct competition (also called category competition or brand competition), where products that perform the same function compete against each other. For example, a brand of pick-up trucks competes with several different brands of pick-up trucks. Sometimes two companies are rivals and one adds new products to their line so that each company distributes the same thing and they compete.

The next form is substitute competition, where products that are close substitutes for one another compete. For example, butter competes with margarine, mayonnaise, and other various sauces and spreads. [1, p 43]

What Does Competitive Advantage Mean?

An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support.

Investopedia explains Competitive Advantage.

Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more

Sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. There are two main types of competitive advantages: comparative advantage and differential advantage. Comparative advantage, or cost advantage, is a firm's ability to produce a good or service at a lower cost than its competitors, which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. A differential advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers. [2, p 28]

Competitiveness - The degree to which a nation can, under free and fair market conditions, produce good and services that will meet the test of international markets while simultaneously maintaining or expanding the real income of its citizens.”

• Competitiveness:
• How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
• Organizations compete through some combination of their marketing and operations functions
• What do customers want?
• How can these customer needs best be satisfied?

In its most general form of competitiveness in economic science understood as the ability to compete with similar facilities in particular market, using a competitive advantage to achieve their goals.

 

 

2. Types of Competitiveness

 

Before one can discuss policies to address competitiveness concerns, it is important to clarify what is meant by the term competitiveness. At least three general types of competitiveness have been identified or implied in various contexts:

Economy-wide competitiveness - The ability of firms across the economy to compete, via price or other product attributes, with businesses located in other countries (this is sometimes referred to as the competitiveness of a country);

International competitiveness of firms - The ability of specific firms or industries to compete for market share with businesses located in other countries, which affects the location of production across countries;

Domestic competitiveness of firms - The ability of specific firms or industries to compete for market share with other firms or industries in the same country.

 

"Economy-wide competitiveness" is actually more a product of a government's macroeconomic policies than of specific sectoral or environmental policies. Indeed, some economists have argued that it makes little sense to talk about the competitiveness of an entire country or economy, and that doing so can lead to badly misguided policies. Countries do not compete the way businesses do, and a country is much more likely to be helped than harmed by the strength of its trading partners' economies. If "competitiveness" has any meaning at all for an entire economy, it is as a synonym for "productivity".

This is not to deny that specific policies on taxation, climate change or other matters that affect the domestic business climate do not matter, for indeed they do. But the concept of "competitiveness" is not a useful tool to examine the economy-wide implications of such policies. Rather, these issues should be considered in terms of the implications of such policies for gross domestic product (GDP) and gross national product (GNP), alongside such issues as education levels, labour relations law, and other issues that affect productivity.

 

The international competitiveness of firms is the ability of specific firms or industries to compete for market share with businesses located in other countries, which affects the location of production across countries. Put differently, it is the ability of a firm to supply product of similar quality at a similar price to other suppliers and thereby gain or hold a share of the market while maintaining profitability.

 

A third type of competitiveness is the ability of specific firms or industries to compete for market share with businesses in the same country while maintaining competitiveness. While international competitiveness is likely to be based on competition for sales of closely similar products, "domestic competitiveness" may involve competition and potential substitution by consumers among broader classes of substitutes, especially in the medium to longer term. Examples include substitution between gas or wind power and coal; between different development patterns and modes of transportation in a city or region; or between waste disposal systems such as gas collection and composting of organic waste.

Significantly, a loss of domestic competitiveness by one firm is the result of an increase in competitiveness of another domestic firm, i.e. the firm to which consumers have switched. [3, p 52]

 

3. Indicators of competitiveness of the product

 

Competitiveness of the goods: it is "characteristic products, which

reflects its difference from the goods of a competitor as the degree of compliance

specific public need, and for the costs of its satisfaction ".

Competitiveness:

• The identity of the properties of the quality and competitiveness of the goods, the latter is determined by comparing its parameters with the parameters

Analog products and customer requirements.

• The difference between the properties of quality and competitiveness of commodity manifested in the fact that, in determining the competitiveness should taken into account only those factors that are of interest to consumer and satisfy its particular needs.
• Development of quality category, which allows the assessment of

competitiveness of heterogeneous goods.

Thus, the competitiveness of the goods shall be determined the sum of its characteristics, which are considered the consumer and seen by comparing with the goods-analogues.

Competitiveness at the micro (enterprise, organization) and mezo-level (business association, the industry) is determined characteristics different from those used in the analysis competitiveness of the goods.

The concept of competitiveness in relation to organizations and companies are contacted in the first place, the concept of the effectiveness of their

of operation. This view is shared by both foreign and domestic authors.

The basic premise of the competitiveness of enterprises - production and sales of competitive products, but for implementation of this assumption, an effective organization in the market, under the competitiveness is understood as "current position of the enterprise market in the first place, market share and trend

change it ". In many studies the competitiveness of the enterprise - this is "the ability to carry out profitable activities in competitive market ".

If we generalize the existing points of view on this issue, competitiveness have those business entities that function effectively and provide the consumer

competitive goods and services.

Finally, we can consider the country's competitiveness as a whole, with a common approach in this area is not developed. On the one hand, emphasizes its importance, because the competitive is a "concentrated expression of economic, scientific, technical, operational, organizational, managerial, marketing and other capabilities of the country ", on the other hand, expressed doubt regarding the use of the term in relation the countries. Thus, the only reasonable concept for national level is the study of performance, and emphasizes attention to the need to "focus not on the economy general and in specific sectors and segments of the industry ".

"Competitiveness", identified signs that reveal the essence

in this category:

1. Competitiveness manifests itself in the market.

2. The concept of "competitiveness" has a universal property and applies to both the object of market relations (product, service) and on entity (organization, industry, the country as a whole).

3. Competitiveness has multi-level (micro, mezo-and macro-level, each of which uses its own set of characteristics to determine the competitiveness).

4. The competitiveness of business entities and objects located in the dynamic and unstable condition due to the constantly changing competitive environment.

5. Competitiveness is relative, where the basis for comparison are the corresponding figures of competitors.

6. Competitive products and enterprises are interrelated concepts, as the company is indirectly support the competitiveness of their products and through services, together with the company's competitiveness is determined by characteristics different from those used in determining competitiveness of products. [4, p 67]

Competitiveness of the product - a characteristic of the goods (services), reflecting its difference from the goods of a competitor as the degree of compliance with specific requirements, and cost to its satisfaction. Two elements - consumer features and price - are the main components of competitiveness of goods (services). However, market prospects for products associated not only with the quality and cost of production. The reason for the success or failure of the goods may be other (non-market) factors, such as advertising, goodwill, the proposed level of service. Yet, no matter how important aspects of the Non-manufacturing firms to ensure competitiveness, the foundation is quality and price. However, the service at the highest level creates greater appeal. Accordingly, the formula can be competitive in the following form: Competitiveness = Quality + Price + service.

Manage competitive - means to provide optimal balance these components, to direct our main efforts on the following objectives: improving product quality, reduce production costs, increase efficiency and service levels.

These components of competitiveness are multi factoral, and each of them can be considered as a complex independent object management. In particular, the amount of production costs affect the cost and quality of raw materials, fuels, electricity, purchased semi-finished products and spare parts, qualifications and salary level of production personnel, productivity, cost control, etc. In the final analysis the possibility of providing the necessary level of competitiveness of the components of the elements is determined by such basic factors of production as the technical level of production, the level of production organization and management.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Competitive Products as Economic Factors

 

                      2.2. Factors determining the competitiveness

 

The development of market relations is inextricably linked with the struggle for producers more favorable conditions of production and marketing of products to maximize profits. In the scientific literature and everyday communication such conflict of interest is called competition.

The concept of competition is the basis of such economic categories as competitive. First of all, it is necessary to distinguish between object and subject of competitiveness.

Competitiveness of the object (product or service) is formed in the process of a specific economic entity, exercised through the implementation of managerial, organizational, production and marketing functions. The ability of the economic entity to compete, to win the competition, which is manifested in its competitive difference, giving the subject the best opportunity to retain existing and attract new customers and winning new markets, characterized by "competitive entity (company)" [18, p. 5] .

Competitiveness as an economic category is the functional result of many factors of competition at different levels and market segments.

The term "competitiveness" is considered in the writings of numerous domestic and foreign researchers. From the name itself implies that competitiveness - is, first of all, the ability to compete or to compete. Further clarification of this term reveals the peculiarities of the objects of competitiveness, objectives and scope of evaluation, and allows you to answer the following questions:

1. Who (what) to compete?

2. What criteria and indicators?

3. What level of competition?

Answer to the first of these questions is fundamental, since it indicates the object evaluation of the competitiveness, that is what is assessed. Answers to other questions take into account the features of an object and allow you to see where and how to implement the ability to compete in the object. Thus, the term competitiveness can not be viewed outside the context of the object. The objects of evaluation may be goods, firms, industries, regions and countries. [5, p 33]

Consider a particular interpretation of competitiveness on several levels:

• The competitiveness of the country;

• The competitiveness of the region (industry);

• The competitiveness of the enterprise;

• The competitiveness of the goods.

Between the concepts of competitiveness at various levels, there is a strong internal and external dependence. On the one hand, country and sector competitiveness ultimately depends on the ability of specific manufacturers to produce competitive goods. But on the other hand, production of competitive products can be carried out in the conditions created for producers in the industry and the country as a whole.

Competitiveness of the goods determines largely competitive and the company itself, its financial-economic status and reputation. But this is only possible if the structure of sales share of competitive goods had the highest revenue and a significant portion of the profits.