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  • September 29, 2022
  • Last Update March 12, 2022 2:43 pm
  • Hannover

Competition Power

A global market for products and services means more customers and more intense competition. In the broadest sense; we are talking about the competitiveness of countries rather than other companies. Because what a country competes most effectively in the global market affects its economic success and the quality of life of its citizens. The US Department of Commerce defines competitiveness as “the level of a country’s ability to produce goods and services that meet the needs of international markets while keeping or increasing the real income of its citizens”. The most common measure of competitiveness is productivity.

Increases in productivity increase wages without causing inflation, thereby improving living standards. Efficiency also indicates how quickly an economy’s capacity to supply goods and services will develop.

Although other factors are effective in productivity calculations, the most dominant input is working hours. According to the Bureau of Labor Statistics; productivity comparisons over time if labor was the only factor of production directly considered; would indirectly reflect the combined effects of many other factors, including technology, capital investment, capacity utilization, energy use and managerial skills. Thus, productivity statistics determined by government reports usually measure productivity changes month-to-month, quarter-to-quarter, year-to-year, or over several years.

Although dramatic advances are not expected in the near future, it would be difficult for economies worldwide to move away from the global customer focus. With the recession in America, the intensity of competition has increased. While terrorist-induced declines in productivity have hurt industry profitability, the remaining challenges have spawned innovations in ways to reduce costs and serve customers more effectively. The massive increase in productivity in the second half of the 1990s; The wholesale-retail trade is tied to a few select industries such as security, computers, semiconductors and Telecom services. Industries with growth potential in the current business environment; It covers banking, financial services, media, software, insurance, medical products, utilities, security and military manufacturing.

Productivity is only one of the variables used to calculate national competitive scores for the World Competitiveness Scoreboard. Gross Domestic Product growth, market capitalization, technological infrastructure, quality of education and management efficiency should also be considered. The ranking, prepared annually by the International Institute for Management Development (IMD) in Switzerland, evaluates how much it supports the competitiveness of businesses operating within the boundaries of the business environment of countries. The selected competitiveness rankings for 2001 are shown in Figure 3.1. The United States is at the top of the list, while Singapore is second. Finland’s northern countries, the Netherlands, and Sweden (3rd, 5th and 8th) are also in the top 10 due to large investments in technological infrastructure and large-scale mobile internet use. The rebirth of continental Europe, represented by Luxembourg, Switzerland and Germany (4th, 10th and 12th), is driven by a more open and flexible business environment. With a growth of 9.9% in its Gross National Product, Ireland is observed as the fastest growing economy, ranking 7th. Its success can be attributed to the education level of the young workforce and policies that encourage cutting-edge production. Japan is 26th on the list; Mexico 36th; Russia is also in the 45th place.

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