Methods of Measuring Enterprise Competitiveness
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Publication date: 2004-05-25
GNPJE 2004;192(5-6):44-72
The article’s aim is to indicate a competitiveness measuring procedure which would be useful for enterprises, and to present methods worked out on the basis of theory and practice that could be applicable to that process. They may be used for developing an enterprise competitiveness management system. Enterprise competitiveness measures should be carried out in reference to three key areas: the competitive position, ie. the effect of activities which have been taken up so far and the starting point to future activities, the competitive potential, which defines the future opportunities ofthe firm, and the company strategy, ie. the programme of activities transforming the potential into results with market conditions taken into consideration. The strategy reveals itself in the competitive game played by an enterprise and in the applicable competition instruments. The overall objective of measuring competitiveness is to assess the competitive situation of an enterprise and to identify its factors and potential consequences for its future operation. In reference to both the potential and competitive position it is required to carry out a multi-aspect analysis of the situation. For that reason, among many available methods of analysis those proposing a comprehensive, systemic approach to competitiveness studies are found to be the most appropriate ones. The actual value of a given method or a set of methods for a specific enterprise depends mostly on the extent to which they allow to precisely link the competitiveness basis to effects of the firm’s activities and on finding out the source of the problem, which might be inadequacy, inefficiency or inflexibility. Proper understanding of competitiveness-building processes and well-chosen analytical instruments allow to find their shortcomings, to determine their nature and impact on the enterprise and to take up appropriate remedial measures.
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