What factors that you should maintain in order to increase competitiveness.
1. Wage. If a company is labor intensive,a company which domain is in low wage country has an advantage.
2. Productivity. If workers work harder, produce better quality and better quantity of products, using more up to date machines, the company is more efficient ( in terms of cost)
3. Cost of capital. If it costs less to borrow money or raise equity capital, a company can invest more and accept lower returns.
4. Technology. A company that is the first with an advanced technology product, which can be protected by patents, has an advantage
5. Management. This covers a variety of skills, including manufacturing and marketing skills, as well as ability to organize for worldwide operations. this is primarily a form-specific issue, arising out of the quality and experience of its human resources.
Read more in Business
« Benefits of Green Tea
How is Boracare Different? »
If one company is labor intensive and the labor cost is high, make sure that it’s labor productivity is high and division of labor should be effective because the cost to product one product will be decreasing. There are several ways to increase labor productivity (management is the one who can do this):
1. Change layout and production process in order to minimize useless movement of product and labor
2. Learning curve. Worker will become more skillful if he/she do specific job
3. Create a better culture in a company
Factors Affecting Competitiveness
