Competitiveness is a concept that characterizes the ability of an object or subject of production to overtake analogues in the current circumstances. Information about this indicator helps to build a true picture of the demand for the product.
Such information contributes to the emergence of guidelines for the further development of the business and the formation of readiness for change. The latter is extremely important for quick adaptation to new conditions. Investors, consumers, producers, the state use a variety of methods to assess competitiveness. Naturally, each of the subjects carries out an analysis based on obtaining benefits in the modern market. For example, an investor, to select an investment object, analyzes the degree of attractiveness of a region or a particular enterprise. The expediency of the investments already made is also taken into account. Methods for identifying the degree of competitiveness should take into account the quality characteristics of products, the price ratio with analogues, the level of customer service, the effectiveness of the advertising technologies used.
What the competitiveness polygon includes
Such a comparative assessment method is quite understandable for perception and helps to compare goods, services and enterprises with each other. To do this, the drawing displays the positions of the compared objects for all indicators. The polygon is formed on the basis of numerous characteristics, which are represented in the figure by vectors extending from one point in different directions. Among them are the following:
- The price of a service or product;
- The main concept of the product / service;
- The level of qualification of the personnel in the sale;
- Service (delivery, assembly, warranty and repair);
- The volume of the product sales market (registered shops, salons);
- The financial well-being of the enterprise;
- The experience of the company or the novelty of the product;
- The degree of informational influence on the consumer (having your own website, conceptual advertising).
Naturally, the above points are only approximate values for the axes, since each product or service has its own characteristics.
Important nuances in building the competitiveness polygon
After building the axes and determining their values using a scoring system, the place of existing goods or enterprises on them is determined. To create a polygon, you need to carefully connect the points - indicators. After evaluating the obtained figures, it is possible to draw a conclusion about the available advantages and disadvantages of the evaluated objects. Then there is an active consolidation of the positive aspects and active work begins to eliminate the omissions discovered in the course of the comparative analysis.
