COMPETITIVENESS

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• COMPETITIVENESS

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Indicators of Competitiveness

• Standard of Living
• Trade
• Productivity
• Investment

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The Competitiveness Pyramid
High standard of living
Trade
Productivity (Quality should exist)
Investment in productive facilities (Factories,
RD, Technology
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MOT at Macro Level

• Countries must be able to
• Create policy of economic growth
• Provide infrastructure supporting technological
  enterprises
• Encourage cooperation between government,
  industry, education research
• Energize support technological innovations
• Promulgate legislation regulation to protect
  environment strengthen social structure

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Economic Indicators of International
Competitiveness

• Standard-of-Living Indexes (GDP)
• Trade Indexes
• -trade balance
• -trade deficit
• Productivity Indexes
• Investment Indexes
• Patents Index

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MOT at Micro Level

• To be competitive, firm must be able to
• Develop culture where competition is appreciated
• Understand process of technological innovation
• Monitor forecast technological changes
• Facilitate implementation of new technology
• Train hire proper workforce for new technology
• Facilitate effective efficient implementation
  of technological changes
• Develop appropriate reward system

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Ways Firms Compete

• Offer desired products or services
• Rely on innovation
• Achieve technological superiority
• Concentrate on quality
• ? cost /or price
• Be 1st to market
• ? product development cycle
• Create niche markets
• Eliminate waste
• Be flexible to change

• Improve efficiency
• Improve customer service
• Promote creativity entrepreneurial spirit
• Harness employee knowledge talent
• Progressive organizational culture
• Encourage teamwork
• Progressive Management style
• ? ability to forecast
• Sharpen ability to plan
• Focus on ? market share

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Characteristics of Competitive Firms

• Profitability
• Stable
• Able to lead in innovation technology
• Able to maintain/increase market share
• Timely develops Introduces innovations
• Pacesetter
• Uses technology to capture market share
• Match strengths with targeted market
• Aggressive
• Flexible

• Progressive
• Fair
• Knows its technology
• Knows strengths weaknesses
• Knows competitors
• Has visionary leaders
• Know how to utilize capability of employees
• Motivates rewards employees
• Knows when to hold, when to fold
• Knows social, political, legal environment

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Problems of U.S. Technological Competitiveness

• Short-time horizons used by management when
  planning strategies
• Lack of understanding of foreign cultures
• Neglect of human resources
• Outdated management strategies
• Poor quality management

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Policies to Improve U.S. Competitiveness

• Better technology management
• ? engineering education
• Improved technology transfer
• Tax credits for technology
• Helping industry cooperation
• More university research
• ?venture capital
• Improved general education