Competitiveness
Competitiveness is the capacity and ability of a firm or sector to gain and maintain a profitable, sustainable market share relative to rivals
The main determinants of the competitiveness are the following: labour market efficiency; labour education and training; accumulation of capital assets; ease of access to energy, material, and resources; number of competitors, consumer market size; existence of market exit and entry barriers; openness to trade; exchange rate volatility; interest rate increases; regulation stability; strong public institutions and rule of law; public finance; good physical infrastructure; good technological infrastructure; access to financing from effective institution; healthy workforce; innovation; agglomeration and clusters of industry .
The metrics of the competitiveness are: profit (profitability); market share; productivity; employment; export share / net imports; turnover .
Competitiveness in business refers to a company’s ability to balance the price of their products and services with the quality to provide customers with the optimal experience. Further, competitiveness in business refers to a company’s ability to achieve more sales or customer loyalty than its competitors due to the quality, price, or a combination of both factors.
Competitiveness in business can be divided into two areas:
Price competitiveness: Price competitiveness refers to the situation where a business can maintain the quality of the goods or services they offer while still pricing them lower than their competitors.
Structural competitiveness: Structural competitiveness refers to the situation where a business can maintain better sales or customer loyalty over competitors regardless of price. This can be because they have a stronger brand identity, better quality products, and services or additional products or services that their competitors don’t offer [Indeed].
Competitiveness measures a country's advantage or disadvantage in selling its products in international markets. The OECD Secretariat calculates two measures of competitiveness based on the differential between domestic and competitors’ unit labor costs in manufacturing and consumer prices, expressed in a common currency [OECD].
⠀ UK Business Competitiveness and the Role of Carbon Pricing: An assessment of the determinants of business competitiveness and the role of carbon pricing policy in the UK (2020) / T. Kansy, P. Sammon, F. Knoedler-Thoma, A. Barbedo. BEIS Research Paper Numb
Competitiveness (in international trade). OECD. Retrieved from: https://stats.oecd.org/glossary/detail.asp?ID=399
What Is the Definition of Competitiveness in Business?. Indeed. Retrieved from:https://www.indeed.com/%D1%80%D0%B0%D0%B1%D0%BE%D1%82%D0%BE%D0%B4%D0%B0%D1%82%D0%B5%D0%BB%D1%8C/c/info/competitiveness-definition