Abstract on the topic of the final work
The automotive industry is the largest industrial sector of the modern world economy (about 9% of world GDP) and has a significant impact on the socio-economic development of countries in general.
Today, transnational corporations are the foundation of the economy of most developed countries, the leading force in their development and efficiency.
Competition is one of the most important attributes of a market economy. The market, as well as the mechanism of its action, cannot function normally without developed forms of competition. The famous English economist F. Hayek aptly argued that "societies that rely on competition are more successful than others in achieving their goal."
The word "competition" comes from the Latin word concurrere, to compete.[1]
Competition is the rivalry between participants in the market economy for the most favorable conditions for the production, sale and purchase of goods and services, for obtaining the greatest profits. This type of economic relations exists when producers of goods act as independent, independent entities, [2] whose dependence is connected only with market conditions, the desire to win positions in production from competitors and sales of their products.
In market relations, competition - a natural and objectively existing phenomenon - can be considered as a law of the commodity economy, the action of which for commodity producers is an external coercive force to increase labor productivity at enterprises, expand the scale of production, accelerate scientific and technical progress, introduce new forms of organization of production and payroll systems and the like.
The competitiveness of an enterprise characterizes the level of competence of an enterprise relative to other enterprises of competitors in the formation and use of the production potential of a certain area, as well as its individual components: technology, resources, management, skills and knowledge of personnel.
![Types of competition](images/1.png)
Figure 1 - Classification of competition
All this affects the indicators of product quality, profitability and productivity.
The competitiveness of an enterprise is determined by means of indicators that reflect the competitiveness of products that are produced, and the efficiency of resource use.
The competitiveness of a product is a characteristic of a product that reflects its difference from a competitor's product both in terms of the level of compliance with a specific social need, and in the cost of its pleasure. The indicator that expresses such a difference determines the competitiveness of the analyzed product relative to the competitor product.
The competitiveness of any product can only be determined as a result of comparison, and therefore it is a relative indicator. Competitiveness is determined by the totality of the properties of these products, which are part of its quality and are important for the consumer, determine its costs in the acquisition, use (operation) and disposal of products. The basis for ensuring the competitiveness of the enterprise is the presence of a competitive advantage. [4-8]
Under the competitive advantage of an enterprise, it is advisable to consider the result of a more efficient management of the processes of formation and development of such qualitative and quantitative properties of a product that are of value to the buyer. The processes of formation and development of the competitive advantages of the goods that are produced are implemented in the functional areas of the enterprise: production, financial and investment, marketing, service and innovation.
Singling out one or another competitive advantage or any of its properties does not focus on the quality and efficiency of the processes of managing the competitive advantages of an enterprise. The effectiveness of managing a particular type of competitive advantage is sharply reduced in comparison with the efficiency of managing a system of competitive advantages.
The system of competitive advantages is the object of enterprise management, all elements of which are closely interconnected. To manage the competitive advantages of an enterprise, one should determine their main properties: variability and relativity. [3]
Variability. Competitive advantage is not a permanent quality of enterprises. The action of competitive factors in the industry creates conditions for its dynamic development, and, consequently, the "aging" of existing competitive advantages and the need to support them. In order to achieve a competitive advantage, a comprehensive effort is needed. Sometimes they are not enough due to the action of externalexternal, uncontrolled factors. Moreover, these same factors can either strengthen or weaken competitive advantage.
Relativity. Competitive advantage is comparative because it can only be assessed by comparing individual characteristics. The relativity of competitive advantage turns out to be in its dependence on specific conditions and reasons. An enterprise that has competitive advantages in one geographic market may not have these advantages in another, and vice versa. When analyzing them, the factor of binding to real market conditions must be taken into account.[9]
At each stage of functioning, the state of competitiveness of an enterprise is different. But when it passes into the so-called maturity, that is, becomes unchanged, it is considered that the moment has come for the implementation of transformations. But with this approach, a situation may arise when carrying out transformations will not give anything. The fact is that due to the difference in timing of changes in events that occur in the parameters that affect the competitiveness of an enterprise at the stage of general maturity, some of them will be in a state of decline, and it will take a long time to change them. Therefore, according to the adopted enterprise development strategy, it is necessary to monitor changes in each factor. All factors that affect competitiveness, that is, the competitive advantages of an enterprise, can be divided into two large groups: internal and external.
To the forms and methods of maximizing internal capabilities based on the implementation of a technological policy aimed at constantly increasing the competitiveness of an enterprise, ensuring high quality products and delivering them on time, it is necessary, first of all, to take into account the flexible use of know-how in production technology, which gives the enterprise the opportunity to become a leader in the production of these products.
Competitiveness indicators - a system of criteria for quantifying the state of competitiveness of a product or group of products of one class. For a more objective assessment of competitiveness, it is necessary to supplement its indicators at the micro level, obtained in the course of surveys of managers, with a number of indicators reflecting the degree of dominance of manufacturers in certain industry and/or geographic markets.
A global industry is one in which the strategic positions of competitors in key geographic or national markets are fundamentally influenced by their overall global positions. To analyze competition in a global industry, it is necessary to study the economics of that industry and competitors in different geographic or national markets.
Global industries require firms to compete on a coordinated basis on a global scale. Otherwise, the firm will be at a strategic disadvantage. Some industries that are international in the sense that they have multinational companies do not have the true characteristics of globality. But, taking a certain part in the development of the product, the subsidiaries of the companies operate autonomously, and the competitive balance is knocked out on the basis of each individual country. On this basis, industries with multinational competitors are not necessarily global. However, one should be aware that "globalism" is always the result of the level, since the amount of strategic advantages of firms that compete in international markets can vary significantly in different industries.
Competition at the international level differs in many ways from domestic competition: these characteristics are usually taken into account when developing an international competition strategy:
- different cost indicators in different countries;
- different circumstances in foreign markets;
- different role of foreign governments;
- the difference in goals, resources and ability to monitor the activities of foreign competitors.
However, the structural and market factors at work in global industries are the same as in most domestic industries. Structural analysis of global industries should include foreign competitors, potential entry candidates, a wide range of possible substitutes, and calculate the likelihood of differences in the goals and nature of firms, as well as their different understanding of strategically important things.
Firms can participate in international activities through three main mechanisms: licensing, exports, and foreign direct investment. As a rule, the first entry of a firm into a foreign market means exporting goods or licensing, and only after gaining some experience in international activities, the firm considers the possibility of foreign direct investment. In industries where competition has become truly global, there will be exports or foreign direct investment. Main pThe outflow of export goods in many countries is a reliable indicator of global competition, but there may not be foreign direct investment in the industry. Such investments may be made up of independent affiliates in different countries, each affiliate's competitive position depending to a large extent on its assets and particular circumstances in that country or locality.
Fundamentally, an industry is becoming global because there are economic (or other) advantages to a firm that competes in a coordinated manner in many national markets. There are many coils of such global strategic advantages, as well as obstacles in their path. The task of the analyst is to assess such phenomena in the particular industry that is the object of study, and to understand whether it is global (or why not), or, conversely, to determine which turns of global advantage have prevailed. [10]
The processes of globalization pose in a new way the problems of the interaction of technological and structural changes with economic growth. Technology is an extraordinary commodity that is only partly exclusive. Unlike ordinary goods, a piece of technology or information can be used simultaneously in different places by different economic entities. Legal protection of property rights, while protecting the owner of the technology or idea, is unable to ensure the absolute exclusivity of such a product. [11]In turn, a product produced using a specific technology can itself serve as a source of knowledge diffusion within and between industries. This circumstance in the context of globalization creates a technological "spillover", which increases the productivity of scientific research in general and stimulates the process of further innovation and technological progress.
Planning the production, import and marketing of products comes down to determining the parameters of qualities (functional, consumer, aesthetic and hygienic), including their packaging, which make it possible to ensure economic performance.
Within the framework of marketing, the following are combined into an integral system: research in the field of sales, advertising, organization of work to bring goods to the consumer. The most important component of this plan is the analysis of the current state of the market. To do this, it is necessary to have detailed information about the type of product, about the degree of its novelty and distinctive features in comparison with analogue products, about their consumer and functional properties. It is also necessary to compare it with the products of competitors, information about the dynamics of prices and sales volumes of this product.
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