Competitiveness is a complex, multi-dimensional and relative concept. It is analyzed at three levelsnation, industry and firm. This article makes an attempt to understand the concept at all the three levels, the issues in the application of this concept to the real world situations and finally its implications in the context of Indian business.
Though the concept of competitiveness is widely known, it is however, hardly understood in all its facets. It is a complex, multi-dimensional and relative concept. It is complex because it is analyzed at three levels nation, industry and firm. Measurements are used at each of these levels from all the three, totaling nine, making it complex and somewhat confusing. Secondly, its dimensions are markets _ home and international, two broad types of measuresfrom the point of consumer and from the point of view of producer and three perspectivesnation, industry and firm. Lastly, competitiveness means "the ability to compete (as compared to rivals)".
This brief article is divided into three parts. The first part provides a broad understanding of the concept at three levels with measurements deployed and its sources. The second part highlights a few important issues in the application of this concept to the real world situation and the last one brings out its implications in the context of Indian business. |
