HomeworkIICA - Competitive Analysis Homework II Professor...

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Competitive Analysis Homework II Professor: Andrea Stocchetti BUILDING A MODEL OF COMPETITIVENESS BASED ON TWO VARIABLES OF CHOICE In this homework I have to choose two competitive factors/determinants of company competitiveness While R&D is often thought of as synonymous with high-tech firms that are on the cutting edge of new technology, many established consumer goods companies spend large sums of money on improving old products. For example, Gillette spends quite a bit on R&D each year in ongoing attempts to design a more effective shaver. On average, most companies spend only a small percentage of their revenue on R&D (usually under 5%). However, pharmaceuticals, software and semiconductor companies tend to spend quite a bit more. I’ll start with a definition of Competitive Factor. A competitive factor is a feature or benefit considered key or essential to the promotion of a product or service to its intended market. Because it is perceived as valuable by the customer it is a value element used to attract buyers. It is an ingredient, a constituent, an element or characteristic of the product or service that is highly sought by the customer. The concept “factors that affect the competitiveness of a company” should be understood as the set of external and internal forces that affect the company’s ability to function efficiently in the market and that are responsible for the company’s competitive advantages in a certain market environment in a certain period of time. We distinguish many groups of factors that determine the competitive position by their content: - production - organization - marketing - innovation - finance - personnel - environment - taxation - controlling - information - management and strategy, etc. Competitive factors usually include price. Other competitive factors may be fast delivery, such as the case of Federal Express, capability, color, size, ease of use, quick response, and many others. In an established industry, these factors are generally well known and offered at varying levels by all competitors. Through this homework I’m trying to determine which factors would make different economic organizations more competitive. Some of the variables of the Competitiveness Index could be the following: research and development (as an indicator of innovation), changing of target markets, adaptation to changes, rate of marketing budget, participation in strategic alliances (as company networking is a competitiveness raising factor for small and medium-sized enterprises), net sales, workforce fluctuation (since motivation and employee satisfaction is in very close relationship with it) 1
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Competitive Analysis Homework II Professor: Andrea Stocchetti – “For the national and international market competitiveness it is necessary to stabilize employers and the available workforce and minimize fluctuation.” [European Union 2006], etc. MODEL
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HomeworkIICA - Competitive Analysis Homework II Professor...

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