The competitive advantage of the organization

click fraud protection

For successful operation of the enterprise in the market it is necessary to have an advantage over organizations producing similar products or providing similar services.Competitive advantage - a concentrated expression of superiority over the competition in the various areas of work of your organization, as measured by the economic and financial performance.It should not be understood as the potential for the company.It is not possible, and the fact that we have to be as a result of the actual preferences of a particular range of customers.In business a competitive advantage - one of the main, the main objectives and results of economic activities of the enterprise.To achieve this goal requires efforts of all staff of the organization.

Competitive advantage can occur if you have the enterprise low cost goods or services, a high level of product differentiation, the optimal segmentation of the market, innovate, made quite a rapid response to market needs.He was treated productivity and qualification of personnel, product quality, high professionalism of managers, a high level of strategic management.

Competitive advantage is comparative in nature, because it can reveal only by comparing characteristics affecting the economic performance indicators of sales.

number of preferred choice on the part of the respondents may be a reflection of rating, which is the result of a market analysis.

In special situations are the products that have unique characteristics, which have no analogues.These products, with absolute competitive advantage, have (in addition to the unique value) by the fact that they overcome for some time, the boundaries of competition and a monopoly on the market.But this type of monopoly, supported by the state, secured way of patenting the new characteristics of the goods.This absolute advantage will create an additional incentive to scientific and technological development, which will help develop competition.

competitive advantage of any economic object can not be universal, it can only be relative.

To achieve it requires a range of activities, however, and they may not be sufficient, since external factors may prove to be stronger.

That analysis on the impact of various factors on an organization devoted to the theory of competitive advantage Porter.In the "International Competition" (1990) he came to the following conclusion: global competitive edge of domestic enterprises depend most of all on what macroeconomic and social environment carried out their work in the country.Macromedia determined not only by production factors, but also such as the demand for the domestic market;development of related industries;the level of management in the country;level of competition;government's economic policy;random events (war, unexpected discoveries, and others).The presence of these six factors largely determines the competitive advantages of companies, industries and countries in the global market.

Porter includes as determinants and random events, either reinforcing or weakening the competitive advantages of countries.Among them he includes new discoveries, technology, sharp fluctuations in energy prices, currency exchange rates, significant changes in global stock markets, the important political decisions, military conflicts and other unforeseen circumstances.