In the literature, there are three approaches to the determination of competition (etymologically the word «competition» comes from the Latin «concurrentia», meaning «clash», «competition»). The first defines competition as competitiveness in the market. This is kind of approach typical for national literature. The second approach considers the competition as an element of the market mechanism, which allows you to balance supply and demand. This view is inherent to the classical economic theory. The third approach defines competition as a criterion by which is determined by the type of industry market, and is based on current market morphology theory. [2]
Competition albeit to varying interpretations, but it is defined as the rivalry of economic subjects, so the competition — is the mechanism of competition, the struggle for the right market structures to find a buyer, and for the opportunity to sell their goods at the most favorable terms and, therefore, to maximize profits.
The presence of a competitor in the market creates an element of competition: the sellers are fighting for the right to better meet the needs of the buyer, to make him their permanent customer [1, 277–279].
That competition:
− Revives market;
− Makes the enterprise and suppliers of resources to properly meet the desire of consumers;
− It makes when entering into one or another branch of new firms to expand production and reduce product prices to a level corresponding to the cost of production;
− Forcing the firm to switch to the most efficient production methods;
− Provides an environment conducive to technological and social progress. [4, 16–17]
Modern competition theory has a variety of concepts, methods, models and tools to assess enhance enterprise competitiveness.
However, in the practice of Uzbekistan's industrial enterprises only a small fraction of the theoretical developments find their use. This is due to their inconsistency with the specifics of the competitive environment and the lack of skills of individual managers.
Develop mechanisms and tools to improve industrial competitiveness, taking into account peculiarities of the modern business environment of globalization of the economy and the tightening of international competition, allowing the development of such economic categories as the competitive potential.
Competitive potential of the modern enterprise reflects the presence of his ability to form long-term competitive advantages. Competitive potential, on the one hand, ensures the effective implementation of competitive strategy, contributes to maintain or increase market share and, thus, provides the company's competitiveness, and on the other — creates conditions for the development and improvement of the competitive position of the company and affect the sustainable competitive advantage.
Sustainable competitive advantage of the enterprise implies its presence in the strategic perspective. Resource competitive advantages are based on the features and capabilities of the company to attract resources on more favorable terms; establish sustainable and stable long-term relationships with resource providers. Grocery competitive advantages are evaluated when entering the market of the product. The presence of stable, the unique characteristics of the product allows the company to optimize the relation: price / quality — costs. Management competitive advantage, expressed in the presence of the unique characteristics of the company's management, determines the effectiveness of the control system and is dominant in ensuring the overall competitiveness of the enterprise.
There are several ways to improve the competitiveness of the enterprise:
- Consistent use of innovations.
- The search for new, more advanced forms of manufactured goods.
- The output of a quality that would meet state and international standards.
- Sales of goods in those market segments where the highest demands for quality and service
- Use only high quality raw materials.
- Continuous training and retraining.
- Increase the material interest of workers and improve working conditions.
- Carrying out market research in order to establish customer needs.
- The analysis of your competitors, to identify their strengths and weaknesses.
- Liaise with research organizations and investing in scientific research aimed at improving the quality of products.
- The use of the most effective promotional activities.
- Register your trademark and the use of proprietary branded products.
Using this way, the company will be able to improve both its competitiveness and strengthen its financial stability.
Researches have shown that the financial health of the enterprise most often reach with higher competitive potential.
Under the competitive capacity of the enterprise it is meant as a real and potential ability of the company to develop, produce, sell and maintain competitive products in specific market segments, ie products, superior in quality-price parameters analogs and enjoying a higher priority demand from consumers.
High competitiveness of enterprises is due to the presence of the following three criteria:
- consumers are satisfied and prepared to buy products from this company again (returning customers, and goods is not);
- The company, shareholders, partners do not have claims against the company;
- The workers are proud of their participation in the activity of the firm, and outsiders consider it an honor to work in this company.
In order to become a competitive company should:
− Ensure the competitiveness of products in targeted market segments. Under the competitiveness of the goods means the estimated consumer object property excel at a particular time in terms of quality and price characteristics counterparts in a particular segment of the market, without prejudice to the manufacturer.
− To raise the potential of the company's competitiveness and, consequently, its divisions, to the level of world producers in the industry. [19]
In a fast-paced competitive environment it is necessary to analyze the competitiveness of the enterprise on a background of other members of this market sector. This will provide information about what attracts consumers in the products or services of this company, and what are the advantages of its competitors. Analysis is needed to those moments it was possible to improve on this basis that contribute to reduced competitiveness. Accordingly, the carrying out of this analysis is a vital part of every business, because, without knowing what the customer needs and what competitive advantages have rivals, rather than attempting to rectify this is not an enviable position, you can come to bankruptcy.
References:
- Belyaevsky I. K. Marketing research: information, analysis, forecast: Textbook — M.: Finance and Statistics, 2001. – p. 277–279.
- Bogomolov I. P. Analysis of the formation of competitiveness category as a factor of superiority in the market of economic objects / I. P. Bogomolov.
- Faskhiev H. A. How to measure the competitiveness of the enterprise / H. A. Faskhiev, E. V. Popova.
- Utkin E. A. Management of the company. / E. A. Utkin. – M. — 1997.
