METHODS OF ENTERPRISES COMPETITIVENESS: FORMATION AND EVALUATION

Abstract

This article examines the theoretical aspects of competitiveness and competitive advantage, along with the assessment of research methods and their applications. Competitiveness is a multifaceted concept that cannot be easily measured and characterized by a few parameters. Competitive advantage refers to an entity's capacity to effectively develop long-term value that exceeds competitors' value while achieving higher profitability than the industry average. The theory of comparative and absolute advantage in competition can be applied at various economic system levels, from single entities to industries at regional and national levels. The fast-changing markets and industries require constant monitoring of the competitive dynamics of environmental conditions and appropriate management decisions to ensure effective growth. As the internationalization process takes place in the global economy, it impacts the competitive process, resulting in a new phenomenon where cooperation changes the compatibility of economic systems and their competitiveness. For a better environment business and countries governments need to achieve economic sustainability and only mobilizing forces we can achieve this. Sustainable development of business economy is complicated in the content, and this requires the development of large network system: economics, community, resources, technology, environment, ecology. Consequently, the approach to competition is no longer viewed as a struggle to destroy opponents but rather as cooperation based on matches and rivalries. Enterprises` managers shape their business strategies and combine resources in a given environment to influence their competitiveness. Therefore, the response to changes at each level will differ because of the availability of resources.