Annals of Warsaw University of Life Sciences - SGGW

Annals of Warsaw University of Life Sciences – SGGW
Forestry and Wood Technology No 76, 2011: 7-11
(Ann. WULS-SGGW, Forestry and Wood Technology 76, 2011)
Analysis of competitiveness of the chosen company
MARIANA SEDLIAČIKOVÁ – MIROSLAVA MICHALKOVÁ
Department of Business Economics, Technical University, Zvolen, Slovakia
Faculty of Media, Pan Europian University, Bratislava, Slovakia
Abstract: During the period, in which the world economy is today, companies, which want to be successful in
hard competitive struggle, have to analyze not only their internal but also external environment. Therefore
companies identify, who are their competitors, what are their objectives and strategy, also their strengths and
weaknesses. They analyze all their steps from preparing of production to distribution and providing of services.
The determination of competitive strategy and effort to build a competitive advantage, on which the company
will then build, should be results of these analyses. If the company wants to be prosperous and competitive, it
has to offer its products and services under the most favorable conditions, with optimal functional properties,
which faster meet the needs, desires, perceptions and consumer requirements. The aim of presented paper is
analysis of competitiveness of the selected company by Porter five competitive forces model and formulation of
proposals for the future period, not only to maintain the enterprise on the market, but also even to increase its
competitive potential.
Keywords: competitiveness, competition, Porter model, analysis, company, economical crises
INTRODUCTION
The existence of competition is necessary for the effective functioning of market
mechanism. There is no single definition of concepts of competition and competitiveness in
economic theory. The competition means the process by which market players and their
different interests and objectives meets together. Market competition affects companies
through competitive forces and also companies affect their competitors. Competitiveness is a
feature that allows the trader to succeed in competition with other businesses; and its
evaluation is therefore related to the character and conditions of this competition (Pitra,
2001).The winner is the one, who knows to apply any (competitive) advantage in the
competition and get the dominance over their competitors.
To be consistently competitive, for the company it means to create tomorrow's
competitive advantages faster than its opponent is able to copy its today’s competitive
benefits. The aim of presented paper is analyze of competitiveness of the selected company
by Porter five competitive forces model and formulation of proposals for the future period;
not only to maintain the enterprise on the market, but also even to increase its competitive
potential.
MATERIAL AND METHODS
The most commonly used methods and models of competitiveness screening on the
market are: analysis of the business portfolio, the analysis of experiential effect, life cycle
analysis of products, analysis of the structure of the production program and Porter
five forces model (Mlákay, 2009). For the competitiveness analysis of the selected company,
the method Porter model of five competitive forces was chosen. The method is considered as
a method of branch analyses and it is also known as the Porter analyses.
Porter five forces model (Fig. 1) is primarily aimed at addressing of issues, how the
competitive environment affects the attractiveness of a market. The presented model and the
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