FACTORS AFFECTING THE COMPETITIVENESS OF A FIRM

Аннотация

This article examines the factors that influence the competitiveness of a company. Factors can have both a positive and negative impact on the competitiveness of an organization. Key words: competition, enterprise competitiveness, enterprise competitiveness methods, factors The competitive position of an enterprise is determined based on an analysis of its strengths and weaknesses, together with an assessment of the factors that influence the behavior of buyers, which, as a result, determine the share of sales of goods in a particular market. Competitiveness reflects the efficiency of the enterprise, the productivity of the use of all types of resources. The competitiveness of an enterprise does not have an absolute measure; it can be determined by a separate or several parameters of the company's activities. A factor is a cause, a driving force of any process, phenomenon, determining its nature or its individual features. A competitiveness factor is a direct cause that influences changes in competitiveness indicators. The factors of competitiveness of an enterprise also mean those phenomena or processes of the production and economic activity of an enterprise and the socio-economic life of society that cause changes in the absolute and relative value of production costs, and as a result, the level of competitiveness of the enterprise [2]. Factors of enterprise competitiveness are those phenomena and processes of the economic activity of the organization and the socio-economic life of society that lead to a change in the absolute and relative value of production costs, and ultimately have a direct impact on the level of competitiveness of the economic entity. It should be noted that in economic literature the approach that divides all factors of the organization's competitiveness into two main groups depending on the enterprise's ability to influence them has received the greatest recognition. Accordingly, the factors are divided as follows: - external factors that the enterprise can influence to a small extent; - internal factors that almost completely depend on the enterprise's management. 65 ACADEMIC RESEARCH IN MODERN SCIENCE International scientific-online conference Accordingly, internal factors are objective criteria that determine the organization's capabilities related to ensuring its competitiveness. The following are considered internal factors of the competitiveness of an economic entity: management information technological environmental production In turn, external factors are those groups of factors that the enterprise cannot directly influence. The following are considered external factors of competitiveness of an economic entity: scientific and socio- economic technical demographic international legal cultural political Based on the above, we can conclude that the competitiveness of an enterprise is a combination of the characteristics of the business entity itself and the characteristics of external factors that have one or another impact on it. It should be noted that factors can have both a positive and a negative impact on the competitiveness of an organization. A positive impact, in this case, becomes the competitive advantages of the enterprise, and a negative impact - competitive problems. 66 ACADEMIC RESEARCH IN MODERN SCIENCE International scientific-online conference Economists A. Ollivier, A. Dayan and R. Urse identify eight key factors of enterprise competitiveness: 1. The concept of the product on which the activity of the business entity is based; 2. The quality of the product, that is, its compliance with the high level of goods that are leaders in the market; 3. The price of the product, including a possible markup; 4. The finances of the business entity, taking into account both its own and borrowed funds; 5. The trade of the business entity, which is assessed from the point of view of commercial methods and means of activity; 6. After-sales customer service, which provides the business entity with regular customers; 7. Foreign trade of the business entity, which consists of managing relationships with the country's authorities, the media and public opinion; 8. Pre-sale preparation of products, which speaks of the ability of the business entity not only to anticipate the needs of potential consumers, but also to convince them of its exceptional ability to satisfy these needs.