Competitiveness

Definition

Competitiveness refers to the ability of an organization or a country to provide goods and services that meet the test of international markets while maintaining or expanding its market share. This concept is vital in driving innovation, efficiency, and overall economic growth, fostering an environment where businesses can thrive through corporate entrepreneurship and intrapreneurship. By emphasizing adaptability and proactive strategies, organizations enhance their competitive edge in a dynamic marketplace.

5 Must Know Facts For Your Next Test

1. High competitiveness often leads to increased efficiency and productivity within organizations, enabling them to offer better products at lower prices.
2. Fostering a culture of corporate entrepreneurship encourages employees to think creatively and take risks, contributing to improved competitiveness.
3. Intrapreneurship allows employees within a company to act like entrepreneurs, leading to innovative solutions that enhance the organization's market position.
4. A competitive environment can stimulate economic growth by encouraging businesses to innovate and improve their offerings continually.
5. Globalization has intensified competitiveness, as companies now compete not just locally but also on an international scale, requiring constant adaptation and innovation.

Review Questions

• How does fostering corporate entrepreneurship within an organization influence its competitiveness?
  • Fostering corporate entrepreneurship within an organization encourages employees to embrace creativity, take risks, and innovate in their roles. This mindset leads to the development of new ideas and products that can improve efficiency and effectiveness. By empowering employees to act like entrepreneurs, organizations can stay ahead of competitors, respond more rapidly to market changes, and ultimately enhance their overall competitiveness.
• What role does intrapreneurship play in enhancing a company's competitive edge?
  • Intrapreneurship plays a crucial role in enhancing a company's competitive edge by enabling employees to drive innovation from within the organization. By acting like entrepreneurs, intrapreneurs can identify new market opportunities, streamline processes, and develop unique products that address customer needs. This internal entrepreneurial spirit not only fosters a culture of innovation but also allows companies to adapt quickly to changing market conditions and maintain their competitiveness.
• Evaluate how globalization affects the competitiveness of businesses in both developed and developing economies.
  • Globalization significantly impacts the competitiveness of businesses by opening up new markets and intensifying competition across borders. For developed economies, it creates opportunities for expansion but also pressures firms to innovate continuously and maintain efficiency. In contrast, businesses in developing economies can leverage globalization to access advanced technologies and capital, improving their competitiveness on a global scale. However, they may face challenges competing with established firms from developed nations. Overall, globalization necessitates strategic adaptation for companies in all economies to thrive in the increasingly interconnected market.

Related terms

Market Share: The percentage of an industry's sales that a particular company controls, reflecting its competitiveness relative to other companies.

Innovation:

The process of creating new ideas, products, or methods that can improve competitiveness and drive economic growth.

Value Proposition:

The promise of value to be delivered to customers, which can significantly impact a company's competitiveness by differentiating it from competitors.