Assistant professor M.B. Turabaeva
Graduate student Urazbekova Ainur
Karaganda State Industrial University
WAYS OF RAISING COMPETETIVENESS OF AN ORGANISATION
Key
words: market, economic analysis, competitiveness, organization, demand,
supply, marketing.
At its
current the stage of development competetiveness is vital trait of economics of
a country. It is almost imossible to be successful in interpreneurship without
planning its development stages, without accumulating and analysing data about
perspectives and opportunities on regular basis, without analysing the
objective markets taking into account the rivals.
Competitiveness
of an enterprise is a property possessing a degree of real and potential
satisfaction of a certain need in comparison with similar objects represented
in this market [2]. The presence of high competitiveness within the interprise
implies its the ability to meet the needs of consumers with a high level of
quality.
The
competitiveness of the enterprise is affected not only by the quality and price
parameters, but also by the effectiveness of management, availability of
material, labor and financial resources, market share, innovation potential,
motivation and qualification of the workforce. Despite the factors cited above,
marketing is the most important factor that influences the level of
competitiveness of an enterprise.
The
main task of marketing is to identify the most important needs of consumers,
take into account their preferences, develop and implement effective strategies
of the enterprise to increase competitiveness. The presence of competition is
an important condition for the formation of competitiveness of goods and the
enterprise as a whole.
Competitiveness
of products - the ability to be attractive to consumers, meet the demands of a
competitive market compared to other similar products. It is determined by the
prices set by the sellers for the products and the quality of the products.
Also, competitiveness is influenced by: the popularity of a product,
advertising, the image of the company, the place of the company on the market
of this product.
Thus,
the competitiveness of products means a set of properties that distinguish it
from analogues.
Also,
this concept is a system of consumer, economic and technical indicators: the
technical level of the product, functional, social and other useful properties.
Most authors use terms such as quality, usefulness, attractiveness,
price-quality ratio, exposure to competition, etc., in their definitions of
competitiveness. It seems to us that competitiveness is a systematic indicator
of the product, a consequence of the work of all elements of marketing, which
provides a winning position in the market.
Competitiveness
of the enterprise is a complex concept that is conditioned by the system and
quality of management, the quality of the products produced, the breadth and
depth of its range, demanded by the society or its individual members, stable
financial condition, the ability to develop its innovative potential, rational
use of resources, work with personnel, image firm.
On the
basis of a comparative analysis of different approaches to the study of the
competitive advantages of the enterprise, it is necessary to systematize them
according to the following characteristics: the attitude to the system itself;
the area where the advantage arises; the content of the advantage factor; time
of realization of the advantage; place of realization of the advantages; the
form of the final result [1].
If the
organization has a competitive advantage, then its in turn is divided into
factors: internal (almost entirely determined by the management of the
organization) and external (the appearance of these factors already depends on
the organization to a small extent).
From
the whole variety of essential features of the enterprise's competitiveness,
the following characteristic properties for this phenomenon can be noted: (1)
the environmental and social environment affect the competitive advantages of
the enterprise; (2) the competitiveness of the enterprise shows the level of
development of this firm relative to its competitors in terms of the degree of
satisfaction of the demand for products and the efficiency of production
activities; (3) the competitiveness of the enterprise enhances its attractiveness
to investors; (4) competitiveness is the ability of one facility to outperform
its competitor by all criteria; (5) the competitiveness of an enterprise is the
ability of an enterprise to stand on the market with similar competitors'
products; (6) the competitiveness of products and enterprises - closely related
categories; (7) the firm's competitiveness characterizes the values
and effectiveness of the application of all its resources.
Since
the competitiveness of products plays a huge role in ensuring the financial
stability of the firm, it must be properly managed. Increasing competitiveness
is an urgent problem in our time, the solution of this problem is connected
with the improvement of the development, manufacture, sale and maintenance of
products. Thanks to these efforts, the following results can be achieved: lower
production costs; improvement of product quality; promotion of advertising
campaigns; increase the economy and efficiency of after-sales service.
Competitiveness
consists of different elements, which represent an independent object of
management. A competitive enterprise has a strategic approach to managing
competitiveness.
American
economist Michael Porter in the theory of competitive advantage considers two
main sources of benefits: marketing and costs. Cost advantages are
competitiveness arising from lower production and marketing costs compared to
competitors. Advantages in marketing are the competitiveness of goods and
services that satisfy customers more than competitors' products. An enterprise
that achieves success in marketing is mainly consumer-oriented, than an
enterprise that seeks cost advantages, however, it too can not ignore
consumers, otherwise its advantage will be fragile. The advantage of marketing
on the market is that some properties of the firm's products are more
preferable than competitors' firms.
There
is a certain system to ensure the competitiveness of the enterprise. Ensuring
competitiveness as a process is the implementation of interrelated scientific
approaches, methods, principles, tools and activities that are developed for
all management criteria and stages of the life cycle of managed facilities and
aimed at ensuring the competitiveness of products. The system of ensuring
competitiveness as a structure is a system that consists of the external
environment of the enterprise and its internal structure. External competitive
advantages reflect the value to the consumer. Internal competitive advantages
cover those indicators that characterize the preference of the enterprise in
the price aspects of competition.[2]
When
comparing the effectiveness of advertising activities of a particular firm with
a competitor, the following characteristics can be used.
1.
Goods: product brand, variety of goods assortment, package quality, indicative
level of product quality, pre-sales stage, after-sales service stage, market
share, rate of change in sales volume.
2.
Price: price level, flexibility of pricing policy, pricing for new products.
3. The
level of advertising activity of the enterprise can be assessed by the
following definitions: the marketing budget, the types of advertising used by
the media, the level and method of sales promotion, the use of individual
sales, the availability of special units, for communication with the public.
In order to increase the competitiveness of the
enterprise, it is necessary to conduct the following event:
- ensuring the competitiveness of the products in the
target market sections;
- Increase the productivity of the enterprise and its
units to a high level in the industry. With this indicator, the possibility of
successful operation of the enterprise in the future opens up;
- constant use of new technologies;
- manufacture of a product of this quality that meets
domestic and international standards;
- manufacturing products only from high-quality raw
materials and materials;
- Carrying out of trainings and improvement of
professional skill of the staff;
- systematic economic analysis to identify strengths and
weaknesses compared to competitors.[3]
Thus, the increase in the competitiveness of the
enterprise is achieved through the orientation of the enterprise to the
consumer sphere, improving the quality of products, the constant orientation to
the emergence of new technologies and raw materials, the effective sale of
goods and services. Thanks to this, the enterprise's competitiveness index, its
ability to make maximum use of its labor, scientific, technical, production and
financial potential is increased.
Annotation: The
article raises issues of competitiveness capability of organizations. Author
looks into the main aspects of competitiveness and ways of reinforcing and
raising it in the contemporary development stage of economics.
Reference
3. Savich Е.О. Ways of raising competetiveness of an
organisation [E-source]. – Access at :
https://e-koncept.ru/2016/86477.htm (date of the application: 16.05.2017).