How to evaluate competitiveness
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The competitiveness of an enterprise is an indicator of the effectiveness of its use of economic resources in comparison with competitors. Its assessment is necessary both for the organization itself to develop measures to increase market share and access to new sales markets, and other interested parties: investors for a profitable investment of capital, potential partners for making decisions on cooperation, banks when considering lending.
Instruction manual
1
The main criteria for evaluating competitiveness are operational effectiveness and strategic positioning. Operational efficiency means the best result of the enterprise among competitors, is determined on the basis of the analysis of business processes and the organization's conduct of one or another type of activity and ensures profit from production and sales. Strategic positioning - the implementation of activities that are different from competitors, or its implementation in another way using unique technologies.
2
In order to assess the competitiveness of the enterprise, calculate the coefficients of operational efficiency and strategic positioning.
3
Determine the operational efficiency of the enterprise (OEP) based on the ratio of revenue from sales and cost of production, goods, work, services:
OEP = (Revenue) / (Costs of production and sales).
4
Then set the operational efficiency indicator for the sample (OEV), that is, the aggregate of competitors, based on industry average values:
OEv = (Revenue from sampling) / (Costs of production and sales by sampling).
5
Calculate the coefficient of operational efficiency based on the ratio of the indicator of the analyzed enterprise to the sample:
Coe = OEP / OEv.
6
The result of strategic positioning is market share. It is determined by the ratio of the company's revenue to market size:
DRp = B / OR, where B is the revenue of the enterprise, OR is the volume of the market.
7
Next, calculate the market share for the sample:
DRV = BB / OR, where BB - revenue from the sample.
8
Calculate the indices of changes in the volume of revenue of the enterprise and the sample in comparison with the previous period:
Ip = V / VPP, where Ip is the index of changes in the volume of revenue of the enterprise, VPP is the revenue of the previous period;
Iv = Vv / Vvpp, where Iv is the index of change in the volume of revenue in the sample, Vvpp - revenue of the previous period in the sample.
9
Calculate the coefficient of strategic positioning by the formula by extracting the square root of the quotient of the division of the obtained indices of changes in revenue:
KSP = √ (Ip / Iv).
10
Calculate your competitiveness factor by adding up your operational performance and strategic positioning indicators:
K = Coe + Xsp.
eleven
With a value of K> 1, the competitiveness of the enterprise is considered high, at K = 1 it is equal to the sample, and at K
