What is Competitiveness?

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

  1. What is Competitiveness?

Competitiveness is defined as the ability of an entity or organization with or without profit to compete . In the economic field, competitiveness plays a fundamental role in companies and countries, thus defining the aptitude of each one to be able to stay in the market. The comparative advantages influence in a decisive way 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 possesses (raw material, technology , knowledge , etc.) and for which it stands out in comparison with another company that has them but to a lesser extent or simply does not have them.

When a company seeks competitiveness, it means that it is proposing new business methods and market strategies that 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 in which the influence of its leaders, shareholders, employees, the State and society set the course for it.

  1. Strategic planning

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

Any company that wishes to increase its level of competitiveness over an extended period of time must first of all face the use of strategic planning .

It consists of the systematization and coordination of the work carried out by each unit in charge of a specific task, in order to maximize the overall efficiency of the company and achieve completely optimal results.

  1. Types of Competitiveness

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

  • Internal Competitiveness  It is that ability that a company has to exploit efficiently and positively those resources it has. Internal competitiveness then highlights the strength of self-improvement and its evolutionary capacity to be more efficient.
  • External Competitiveness  It is 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 achieved, 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 directly stimulated with the ruling State. This is responsible for promoting a policy that provides the necessary conditions so that trade can function normally between companies.

Sports Competitiveness  This concept is also found in sports . Competitiveness in sport increases as a competition gains more recognition. This competition is made up of the practice of a game where participants are competing with each other, in order to award recognition and prize positions.

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