The Factors Affecting Competitiveness of Companies

The country also must provide efficient physical infrastructure, cost effective energy supply, information and communication network, investment in knowledge and research and development, provision of skilled force, stable financial and economic system so that the corporations have the quality resources in terms of technology and quality human resources so that they can reap the maximum competitive advantage in a dynamic market place. In addition, to become more competitive it must reform the labor market to become more flexible to improve productivity and become more competitive in cost terms in dynamic market conditions.

As discussed above the Porter model at least as an initial step in analyzing the competitive forces will shed insight in to the strategic options to enhance competitiveness. However further preventive strategies have to be developed, as the market place is dynamic and use other business models to further analyze the external situations scenarios so that it can develop a comprehensive strategy, which is more effective, and there is more probability of success.

In addition, it must also be aware of environmental issues like global warming and other environmental issues and must act as a socially responsible manner in international market to be competitive. The corporations must also consider value chain analysis to become more cost leaders; differentiation of its products in terms of price and quality compared to its competitors and develop strategies by appropriate configuration in terms of inbound logistics, outbound logistics, marketing and sales and the level of co-ordination, which meet the above objectives and contribute to competitive advantage particularly for corporations involved in international business and industries. As well, the strategies must be compatible with a corporation's strength in terms of internal resources and competencies so that they can reap the maximum benefit and the realization of such benefits.

The corporations must become more flexible to meet customer needs quickly as possible and must have a culture of innovation and product quality and customer service to meet customer needs more effectively than the competitors and change is welcome in an organization.

As discussed above, it can be argued the Porter Model has some value in developing effective strategies, if the management of corporations also use other complementary models to analyze further and refine their strategies to gain competitive advantage and recognize the dynamic nature of markets and improve its processes and products continually and adopt strategies to improve its productivity by improving its human resources, innovative potential, cost reduction strategies and the flexibility of the organization in response to the changes in the external environment.. In addition, it can be concluded that the country characteristics certainly have an effect on the competitiveness because the political, social, economic, cultural and technological factors affect and change the industry structure and there fore the competitiveness of that industry and the corporations operating in these industries and the attractiveness of the industry. As well, the country can affect the productivity and cost structure of company and their ability to innovate and there fore affect the international competitiveness.