Competitive advantage of the organization

For the successful operation of an enterprise on the market, it needs to have an advantage in comparison with organizations that produce similar products or provide similar services. Competitive advantage is a concentrated manifestation of superiority over competitors in various spheres of work of a particular organization, measured by economic and financial indicators. It does not have to be understood as a potential opportunity of the enterprise. This is not an opportunity, but a fact that takes place as a result of the real preferences of a certain range of buyers. In business, a competitive advantage is one of the main, main goals and the result of the economic activity of the enterprise. To achieve this goal, the efforts of the entire collective of the organization are necessary.

Competitive advantage can arise if you have a low cost of goods or services at the enterprise, a high level of product differentiation, optimal segmentation of the market, innovations are introduced, and a sufficiently rapid response to the market needs. It includes labor productivity and personnel qualification, product quality, high professionalism of managers, high level of strategic management.

The competitive advantage is comparative, since it can be identified only by comparing characteristics that affect the economic performance of sales.

The number of preferred elections on the part of the respondents can serve as a reflection of the rating of the product, which is the result of marketing analysis.

In a special position are products that have unique characteristics that have no analogues. Such goods, having absolute competitive advantages, have (besides unique value) also the fact that they overcome for a while the boundaries of competition and are monopolies in the market. But this type of monopoly, supported by the state, is fixed by the way of patenting new product characteristics. These absolute advantages will create an additional incentive for scientific and technological development, which will help develop and compete.

The competitive advantage of any economic object can not be universal, it can only be relative.

To achieve it, a whole complex of measures is necessary, however, and they may not be sufficient, as external factors may prove to be stronger.

The theory of Porter's competitive advantages is devoted to the analysis of the influence of various factors on the organization. In the work "International Competition" (1990), he came to the following conclusion: the global competitive advantages of national enterprises depend most on the macroeconomic and social environment in which their work is conducted in the country. The macro environment is determined not only by production factors, but also by such factors as demand in the domestic market; Development of related industries; The level of management in the country; Level of competition; Economic policy of the government; Random events (war, unexpected discoveries and others). The presence of these six factors largely determines the competitive advantages of organizations, industries and countries in the global market.

M. Porter includes random events as determinants , either strengthening or weakening the competitive advantages of countries. He refers to them new discoveries, technologies, sharp fluctuations in energy prices, exchange rates, significant changes in global stock markets, important political decisions, military conflicts and other unforeseen circumstances.