Business competitiveness is measured in terms of the efficiency of its operations and its participation in the market. To know how to improve business competitiveness, you must implement strategies that help it maximize its resources and offer value that attracts customers. The concept of competitiveness in the company can be seen from an internal point of view when considering its productivity and profitability. And from an external one, when knowing what is the impact of its position within its industry.
In both cases, a competitive company is one that counts among its main assets leaders capable of motivating and justly rewards their staff, to adapt to the changes that entail the digital transformation. And to anticipate market trends and adopt a proactive role that leads the organization to get ahead of its competitors. Best way to analyze how to improve business competitiveness.
What are the types of competitiveness?
In this sense, there are different types of corporate competitiveness:
- That has to do with the relationship of the company with various factors of the market and the economy, common to all organizations.
- Static or dynamic. Based on price competition within the industry, and innovation as a determinant to attract customers and retain human capital.
- Authentic or false. The first has a structural nature and is related to the technological progress of the company. The second occurs as a result of the use of natural resources and a cost on wages.
How to improve business competitiveness? Take these aspects
There are four aspects that greatly influence the level of competitiveness of an organization:
- Internal and external analysis. When strengths and weaknesses are known, it is easy to discover opportunities and face threats. There is nothing like knowing in depth the organization and the environment in which it operates to make the best decisions and make an effective strategic planning.
- Determination of prices. It is not about reducing them compared to the competition and starting a price war, but about defining what value is being provided to the customer in exchange for their money and the price that will compensate the operating expenses, leaving a healthy profit.
- The loyalty of the client. Today’s consumers are looking for more than quality and price. They are interested in receiving excellent attention and will buy from the companies with which they share values and that are socially and environmentally responsible.
- Innovation in product development and process design. Finding new ways of doing things not only guarantees to be at the forefront of the market. It is also an opportunity to achieve savings in the company’s operations to increase the profit margin.
What strategies to implement?
To stay profitable, companies must be competitive, because their survival depends on that. That is why they must implement strategies to try to stay ahead of their competitors.
These business competitiveness strategies are summarized in five:
- Costs reduction.
- Increase in customer satisfaction.
- Improvement of processes and productivity.
- Development of innovative products.
- Expansion to new markets.
To achieve this, we must focus on tactics such as:
- Find and serve niche markets.
- Define and highlight an important differentiating element.
- Minimize operating costs to offer better prices.
Whatever your business, you must look inward and outward to determine what aspects you can improve to boost your productivity and improve customer service. Knowing how to improve business competitiveness will allow you to succeed.