Competitiveness – Concept, types and strategic planning

We explain what competitiveness is and what strategic planning consists of. Also, the types of competitiveness that exist.

A company achieves competitiveness based on experience and learning.

What is competitiveness?

Competitiveness is defined as the ability of a for-profit or not-for-profit entity or organization to compete. In the economic sphere, competitiveness plays a fundamental role in companies and countries, thus defining the aptitude of each one to be able to stay in the market. Comparative advantages have a decisive influence since they will provide the scope, support and improvement in terms of the socioeconomic position in which it is found.

The comparative advantages involve those resources that a company has (raw material, technology, knowledge, etc.) and for which it stands out compared to another company that has them but to a lesser extent or that simply does not have them.

When a company seeks competitiveness, it means that it is raising new business methods and market strategies That they give it a positive and transcendent evolution, and thus adapt to the current economic model.

A company achieves competitiveness based on experience and learning Through the years where the influence of its leaders, shareholders, employees, the State and society set the course for it.

Strategic planning

Strategic planning seeks to maximize the overall efficiency of the company.

Any company that wants to increase its level of competitiveness in an extended period of time, must face in the first instance the use of strategic planning.

The same consists of the systematization and coordination of the work carried out for each unit in charge of a specific task, in order to maximize the overall efficiency of the company and achieve totally optimal results.

Types of competitiveness

In turn, competitiveness residing in a company can be divided into:

  • Internal competitiveness. It is the capacity that a company has to efficiently and positively exploit those resources it has. Internal competitiveness then highlights the strength of self-improvement it has and its evolutionary capacity to be more efficient.
  • External competitiveness. It is then based on the achievements of a company in the context of the market. Then, we can say that external competitiveness is dependent on the market model in which said company is immersed, which must then analyze the dynamism of the industry, innovation, etc., to achieve a level of competitiveness that allows it to survive. Once a positive level of competitiveness has been reached, it must be maintained over time through the generation of new future ideas and the use of opportunities.

Competitiveness of a country. Competitiveness with regard to countries must be stimulated directly with the ruling State. This is in charge of promoting a policy that provides the necessary conditions so that trade can develop normally between companies.

Sports competitiveness. This concept is also found in sport. Competitiveness in sport increases as a competition gains more recognition. This competition is composed of the practice of a game in which participants are competing with each other, in order to be awarded positions of recognition and prizes.