Why is the competitiveness of an enterprise important?

The analysis of the competitiveness of any enterprise includes the study of external and internal competitive advantage, which allows not only to strengthen the company's position in the operating sector, but also to enter new markets, offering consumers newer and more modern products.

The external advantage is based on the ability of the firm to offer buyers a better quality product, the main advantage of which is a higher moral and aesthetic satisfaction of the population, while reducing costs and improving the efficiency of the return on its implementation. The competitive advantage of this type strengthens the company's position in the market, and also uses the strategy of distinction (differentiation) as the most important component of its advantage.

As for the internal advantage, here the competitiveness analysis is based on the superiority of the company in the costs and costs it spends on the creation or delivery of the goods. In other words, here the company's marketing strategy is aimed at reducing costs and, consequently, the final price of the product, as a result of which it is possible to increase sales in the segment of the population with a small financial income. Such analysis allows the company to be more profitable, and also resists further price reduction by potential competitors in case other companies also begin to reduce prices for similar goods or services.

Thus, the analysis of the competitiveness of the company sets a major goal - to find out what specific competitive advantages the firm can achieve, and also how to maximally effectively protect its financial interests. The latter fact directly depends on how well the company can successfully resist the pressure of the main competitive forces on the market, and a competent analysis of competitiveness allows us to find out.

All managers are well aware of M. Porter's competitive advantage model , which includes an analysis of the five competitive forces to which any firm operating on the market is exposed:

- dependence on major suppliers;

- dependence on the main consumers;

- competition in the industry;

- the threat of replacement of basic goods and services;

- the threat of the arrival of new competitors.

Competent analysis of the main competitive advantages of the company is also important because it allows you to objectively assess not only the existing position of the company and the niche that it occupies, but also to determine the possibilities for expanding and strengthening positions in the market due to those factors that, as a result of the analysis, will be identified in Quality of the basic. As an example, we can give a plan for analyzing the competitiveness of one of the enterprises engaged in knitted goods.

At the first stage, such parameters as the growth rates of production, the share of the market occupied and the analysis of the main analogues are clarified. Next, the main list of competitors is compiled, after which a plan is drawn up to include the main competitors in terms of their impact on the market. Among the many factors can be identified the following categories:

Management of organization and management of the enterprise:

- strategy;

- Tactical goals and objectives;

- entrepreneurial philosophy and culture;

Production:

- equipment and its updating;

- quantity of products;

- dependence on suppliers;

- Flexibility of production lines.

Marketing strategy:

- assortment of goods ;

- wholesale and retail trade;

- fame of the company;

- advertising;

- prices;

- the speed of reaction and change in fashion.

Thus, the analysis of the enterprise's competitiveness on the example of the plan-scheme clearly shows which factors should be paid attention to when carrying out the relevant studies. The importance of this whole process is manifested not only in a clear understanding of the market situation and the determination of its location in the market, but also the opportunity to assess the entire potential of the company, including hidden. In this respect, the analysis of competitiveness is extremely important and is a necessity in any modern firm.