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Learning and Practice
International Competitors
Globalisation

To be competitive in an international market requires you to:

• be focussed on the particular requirements of each country’s market
• communicate clearly and accurately
• be aware of the changing business environment in each country
• be competitive where it matters

Competitiveness will have different meanings in different countries and markets - selling at a low price may well be essential in Eastern European markets, but might be suicidal in North American markets. Just as with the meaning of quality discussed in the competition strategies section, defining competitiveness depends entirely on the target market you are selling to and the strategies of the established businesses serving that market.

To be competitive you need to know your market and this requires systematic market research. It also requires flexibility within the business. If, for example, price is a deciding factor then the business must be able to produce a modified product at a much lower unit cost. Alternatively if quality is essential, in terms of a high specification of design and materials, then the business must have sufficient skills and quality controls to achieve this.

To serve a wide range of international markets requires a wide range of production options. Many transnational companies have stopped producing in their “home” country and manufacture their products in the developing economies of South America and South East Asia: labour costs are much lower and the labour force is more flexible in terms of working conditions.  Changes in exchange rates can affect the competitiveness of a business: if the exchange rate of a business’s country increases then its products will seem less competitive to foreign buyers.

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