Competitiveness is a concept that characterizes the ability of a subject or object of production to circumvent analogues in the current conditions. Information on this indicator gives an objective picture of how much the product is in demand. This means that business development guidelines appear and the entrepreneur or other entity is always ready for change. The latter is very important, as it allows you to quickly adapt to new realities.
Various methods for assessing competitiveness are used by such entities as the state, investors, manufacturers, consumers. Each of them makes an analysis in terms of its own benefit in a market economy. For example, an investor is interested in the attractiveness of an enterprise or region in order to find out whether it is worth investing in them. The moment of justification of the already invested capital is also important. Moreover, methods for assessing the competitiveness of enterprises should take into account the following indicators:
- Price ratio with analogues;
- Product quality characteristics;
- The level of service (before and after the purchase), the effectiveness of advertising technologies used by the manufacturer.
And the most convenient way to benchmark can be called the polygon of competitiveness. The method is good because it is quite understandable and makes it possible to compare enterprises or goods, services. It represents a display on the drawing of the position of the compared elements for each indicator.
So, the competitiveness polygon is built on the basis of the following characteristics, which are represented by vectors directed in different directions from one point:
1. The price of the product (service);
2. The defining concept of goods, services;
3. The level of service during the sale (staff qualification level);
4. After-sales service (delivery, assembly, warranty, repair);
5. Market for products (company stores, salons, showrooms, etc.);
6. Finances held by the enterprise;
7. The novelty of the product or the experience of the enterprise;
8. The level of informational impact on the consumer (advertising, website).
It should be noted that these are only approximate values for the axes, because each product, service, enterprise has its own characteristics, due to different areas of production. Therefore, the values can vary and vary depending on the objects of study.
After the axes are built and their values are determined, it is possible to determine the place of each enterprise, product on them using the points system. According to this provision, for each object a polygon of competitiveness is drawn, that is, points - indicators are connected. Then, looking at the figures obtained, you can see the advantages and disadvantages of all evaluated objects. Based on the information received, good results should be consolidated and work should be done to eliminate the disadvantages and omissions that appeared during the comparative analysis.
It should be noted that all the marketing moves that will be conducted must take into account not only the specific plans of the entrepreneur, but also similar offers from competitors. For example, a store’s discount program should not only be profitable, it should be the best.
True, this simple method (graphic polygon of competitiveness) has several drawbacks. For example, it is impossible to make forecasts regarding the future product or service, and unscrupulous types of struggle for the consumer are also not taken into account. Therefore, you should use several research methods and, after a certain period of time, order a professional to analyze the state and place of the product or production on the market.