# How to evaluate competitiveness

Instruction

The main criteria for evaluating competitiveness are operational efficiency and strategic positioning. Operational efficiency means the best result of an enterprise’s activity among competitors; it is determined on the basis of an analysis of business processes and the organization’s conduct of a particular type of activity and ensures profit from production and sales. Strategic positioning - the implementation of activities other than competitors, or performing it in a different way using unique technologies.

In order to assess the competitiveness of an enterprise, calculate the coefficients of operational efficiency and strategic positioning.

Determine the operating efficiency of the enterprise (EP) on the basis of the ratio of revenue from sales and cost of products, goods, works, services:

OEP = (Revenue) / (Costs of production and sale).

OEP = (Revenue) / (Costs of production and sale).

Then set the operating efficiency indicator for the sample (OeV), that is, the aggregate of competitors, based on the industry average values:

OEV = (Revenue by sample) / (Costs of production and implementation for the sample).

OEV = (Revenue by sample) / (Costs of production and implementation for the sample).

Calculate the ratio of operating efficiency based on the ratio of the analyzed company to the sample:

CoE = OEP / OEV.

CoE = OEP / OEV.

The result of strategic positioning is market share. It is determined by the ratio of the company's revenue to the market volume:

DRR = B / OR, where B is the company's revenue, OR is the market volume.

DRR = B / OR, where B is the company's revenue, OR is the market volume.

Next, calculate the market share for the sample:

DRV = BB / OR, where BB is the revenue for the sample.

DRV = BB / OR, where BB is the revenue for the sample.

Calculate the indices of change in the volume of revenue of the enterprise and the sample in comparison with the previous period:

Ип = В / ВПП, where Ип is the index of change in the volume of the company's revenue, VPP is the revenue of the previous period;

Yves = Vv / Vvpp, where Yves is the index of change in the volume of revenue by sample, Vvpp is the revenue of the previous period by sample.

Ип = В / ВПП, where Ип is the index of change in the volume of the company's revenue, VPP is the revenue of the previous period;

Yves = Vv / Vvpp, where Yves is the index of change in the volume of revenue by sample, Vvpp is the revenue of the previous period by sample.

Calculate the coefficient of strategic positioning by the formula by taking the square root of the quotient from dividing the obtained indices of change in revenue volumes:

CSA = √ (Yip / Iv).

CSA = √ (Yip / Iv).

Calculate the coefficient of competitiveness, adding the indicators of operational efficiency and strategic positioning:

K = Coe + Ksp.

K = Coe + Ksp.

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