What Competitiveness Metrics Is to Be Used?

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It is very important to evaluate competitiveness rate of a company in order to move further and set strategic goals. It is not reasonable to plan ahead without knowing current problems. This article talks on competitiveness metrics for Balanced scorecard. Check additional information about competitiveness metrics.

Have you ever though over reasons for tech progress? Why are we offered new products of superior quality every year? What makes companies spend billions of dollars for innovation? The answer is very simple. It is all about competition. Indeed, competition does not let companies stand still and stop developing. Gaining competitive advantage is an ultimate goal of every company. Loss of competitive advantage is an instant death in business world. That is why it is especially important to evaluate company competitiveness rate in order to assess strategic plans. In the post crisis economy innovation is the only way to survive in the market. Without competitive products at competitive prices no success can be achieved.

How can top management evaluate competitiveness of a company? What factors are to be taken into consideration? Does innovation alone guarantee improvement of competitive advantage? It is rather a combination of factors that will be discussed in this article.

Use of Balanced Scorecard is strongly recommended for those who want to evaluate competitiveness of a company. Balanced Scorecard is known as one of the most popular strategic management and performance evaluation tools. The four categories of Balanced Scorecard cover the most important success factors, both in internal and external environment. BSC offers a dashboard that will demonstrate information on company competitiveness in the national and international markets. Why is it important to evaluate competitiveness? Firstly, it is not reasonable to make any future plans. Why spend huge money to enter new markets if you will be wiped out by strong rivals? Secondly, evaluation of competitiveness will help top management locate and locate problems. Thirdly, high competitiveness rate creates a positive image for the company. This improves customer loyalty and thus increases sales. What are measures (key performance indicators) are to be used to assess competitiveness rate of a company? Let's name a few.

Human capital. Educated and dedicated personnel is a must for every company that has ambitious plans. Such indicators as higher education attainment or science and technology researches are among the most popular KPIs used for competitiveness evaluation. Recent financial meltdown proved the fact that personnel is a supreme value for any company.

Innovation capacity. The more company invests in R&D the more chances it has to conquer new market shares. This category includes such important indicators as corporate investment in R&D, share and quality of world's scientific and technical publications and government investment in R&D. Some leading world companies spend as much as 70% of all net income into R&D. as a rule, rewards come very soon. Recent revolution in smartphones market is the best proof of R&D investment efficiency.

Economic policy factors. It is extremely important how easy the company is running business in a particular economic environment. Taxes are another serious concern. That is why, to fully evaluate competitiveness rate of a company it is necessary to assess such KPIs as ease of doing business and effective corporate tax rates.

Evaluation of competitiveness depends on the country and markets in which the company is doing business.

If you are interested in competitiveness metrics, check this link to find out more about competitiveness metrics. Also, you can check other articles in Strategic Planning category.

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