For a market with many competitors, analyzing the competitiveness of an enterprise accurately, specifically, the more it helps businesses to make plans, business strategies, products back in the right direction and suitable development. Competitiveness encompasses many factors and assessments are based on integrated resources including market, personnel, capital, products and other factors.
The competitiveness of an enterprise is determined based on its competitive advantages. A strong advantage is understood as the characteristics or parameters of the product whereby the product has a superiority, superiority over the product of direct competitors. Factors that create competitiveness of enterprises include:
- Reputation: Assessing the trust of customers in the business, creating a good reputation for customers is the basis to create customers' interest in the products and services of the business.
- Trademark popularity: affects a product category with a specific brand of the business.
- Adaptability: The ability to adapt to the changes in the business environment of the business to ensure the existence and development.
- The flexibility of business managers: The sensitivity of business managers creates favorable conditions for businesses to grasp production and business opportunities and development opportunities in the market.
- Business experience in the marketplace: Including tactical methods and strategies in business. This is an intangible asset that creates a competitive advantage for businesses.
- The position of enterprises in the market: Being evaluated on the basis of prestige, image, market share ... Enterprises with high positions in the market are very advantageous in competition. These companies have the ability to diversify products, develop markets to enhance competitiveness.
- Quality assurance system for products and services: Quality standards that businesses apply to ensure the quality of their products. Through the application of standards, the quality management system of products and services makes customers trust when using products and services.
- Capital and cost advantage: This is a very important factor when the products of businesses in the market are relatively homogeneous, the price reduction is a very effective measure to increase competitiveness. of the business.