The relationship between the competitiveness of enterprise and the competitiveness of its products

Abstract

The article explores the relationship between the level of competitiveness of enterprises and competitiveness of its products. Hierarchy is considered the concept of «competitiveness». The author shows the differences between the company’s competitiveness and the competitiveness of its products. The article presents a conceptual model of the «Pyramid of competitiveness of enter prises», which, by establishing the relationship between management, the sources of competitiveness, core competencies and competitive advantages, illustrates the ontogenesis of the formation of the competitiveness of enterprises. According to the presented model the competitiveness of a company is formed as a result of targeted impacts management of the company at the sources of competitiveness in the execution of tasks on the tactical and strategic management. Depending on its configuration, the sources of competitiveness increase the value of management actions, results in developing the core competencies of a business entity. Core competencies of the enterprise are formed as a result of consolidation of the company’s resources, technology and skills, the core competitiveness of the economic entity is the ability to apply the configuration of various assets, to combine resources with knowledge. The process of forming the competitiveness of enterprises chronologically and logically flows from management to competitive advantages. Thus, the competitiveness of products is a consequence of the competitiveness of the enterprise. The article shows the practical implications of the proposed conceptual model, consisting of the inefficiency of the concentration of company resources exclusively on maximizing the competitiveness of products.