Competitiveness Definition
In business, competitiveness is the degree to which a company can produce goods or services at a lower cost than its competitors. It is a measure of how efficient a company is in using its resources to produce its products or services.
Competitiveness is often used as a synonym for efficiency. However, there is a distinction between the two concepts. Efficiency is a measure of how well a company uses its resources to produce its products or services. Competitiveness is a measure of how well a company can produce its products or services relative to its competitors.
A company can be efficient but not competitive. For example, a company that uses state-of-the-art technology and has very low production costs may still be uncompetitive if its competitors are able to sell their products at lower prices.
Conversely, a company can be competitive but not efficient. For example, a company that employs aggressive marketing tactics and sells its products at below-market prices may be competitive but may not be making the most efficient use of its resources.
