Competitiveness is an index that allows one to evaluate the product by certain aspects. The main factor is the ability of a specific product to meet the target audience’s needs and the level of its capacity compared to competitors. In other words, one may characterize competitiveness as the potential to meet customer needs and market demands. There are two fundamental factors by which one can estimate the product’s competitiveness: quality and price. However, the company’s brand, market conditions, and promotions also influence its competitiveness.
The competitive ability also allows people to judge whether the product can exist on the market and maintain demand no worse than the production of other companies. The most important source of competitiveness is high-quality products. In addition, the quality of output is the most crucial part of sales volume and the profit the company receives. The quality of products can be evaluated by comparing its economic and technical indicators in comparison with samples of similar products from other companies.
The first case is an example of the ideal performance of any company or manufacturer. Under such conditions, the product is of high quality, and at the same time, its competitiveness is at a high level. It means that the product meets not only the audience’s needs but also the market reality. The price-quality ratio maintains an ideal balance; in other words, customers are ready to pay a certain amount of money for a certain level of quality. An example of such a product can be a car, for example, a jeep. Under these conditions, these vehicles have a high-quality assembly, and breakdowns are infrequent. Moreover, such a car will be powerful and have a great exterior and interior, and the price will be lower than that of competitors’ cars in its class.
In the second case, although the product is of high quality, some of the competitiveness factors are not met. This situation is unlikely, as it contradicts the laws of the market. Although this happened with phones from the Meizu company, despite its high quality, in 2019, the company almost closed but survived, although it shut down some production facilities. It happened because customers complained about not updating the system while using these smartphones. In other words, the fitness of use was not at that level demanded by customers.
The third case is also unlikely since if the technical specifications are not met, the product is unlikely to be widely used. However, when the iPhone X was released, many people complained about defects when unpacking and using it. Despite this, due to the reputation and name of the company, sales were almost at the same level, and many people still use it; in other words, the fitness of use is competitive.
The fourth case is the worst scenario; an example might be, again, a car. Compared to the first occasion, then such a car will have a poor build and be overpriced. Moreover, such a product would constantly break down and not correspond to the realities of the market. Under these conditions, sales will be minimal, and the company has little chance of continuing to operate.