Competition and competitiveness assessment

Competition – it is a way of development of commodity production and competition economic elements of the preference for consumer audience in order to maximize profits. Translated “competition” means “face”, and as in modern society, control volumes and rates of production, encourages the producer to the implementation of scientific and technological achievements and increasing productivity.

The Development of competition and assessment of competitiveness of the enterprise became possible only in the conditions of the capitalist mode of farming. Capitalist relations, which were lifted all restrictions on the direction and path of movement of labour, goods, capital, relations on the national market and the emergence of the world market was only possible thanks to the emergence of competition.

The Optimal intensity of competition and the assessment of competitiveness of goods on the market assumes as a policy objective in this area is the following:

the rapid introduction of technical progress in the production of goods and services, the so-called innovation policy under the pressure of competition;

- flexible adaptation and conversion of enterprises under the influence of the inclinations of consumers.

Evaluation of the competitiveness of the goods or services and the scale of the intensity of competition is determined by the rate of loss of advantages in profit, that is, how quickly innovative production techniques used by the competitors. First and foremost, this figure depends on the efficiency and speed of  competing companies and their reaction to a leap of quality and technology enterprises in the vanguard, as well as on the dynamism of demand.

Recommended

Staff evaluation: system and methods

Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...

How to start your own business: important aspects.

Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...

Business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...

The Basic principle of competition States that the most favorable conditions for the development of healthy competition appear if the competition presents “wide” oligopoly. “Narrow” oligopoly, coupled with a strong individualization of the goods or services significantly reduces the intensity of competition.

In any market economy there is a danger of evasion of participants of the competitive struggle from the mandatory risk and standards closely related to the condition of free competition, and then can't be made accurate assessment of the competitiveness of the company. In order to avoid unfair methods of competition (price collusion, imitation of trademarks, etc.), the state shall issue rules governing the competitive struggle regulations. Those rules shall ensure that:

- quality products;

- the existence of competition;

the position of the price and quality of goods or services in the spotlight competition;

- proportionality of prices of services to other terms of the agreement;

- the existence of trademarks that are protected by legal standards and confirm quality of production;

- a time limit of patent protection(20 years).

In order to assess the competitiveness of enterprises or companies, it is necessary that the competition process was used fair methods of competition, in addition to which, as we know, there are less legitimate called bad faith.

The methods of unfair competition related to industrial espionage (aka economic); bribery and blackmail; forgery of competitors ' products; fraud reporting; consumer fraud; hiding the defects of goods; etc. in Addition to unfair methods of competition under which a true assessment of competitiveness can not be done, is the scientific-technical espionage. As is known, the source of profit can only be the development that will be embodied in practice, that is, in the case that scientific and technical invention or idea is translated into the production of a particular product or new technology.