4.4.1
Global Competitiveness
Global Competitiveness
Global Competitiveness
There are factors which can affect the global competitiveness of a business:


Exchange rates
Exchange rates
- The impact of movements in exchange rates can affect the global competitiveness of a business as the cost of imports and exports change.
- A global business which competes with a national business may be affected by an exchange rate change which reduces demand for its products whilst a national business may be unaffected.


Competing on cost
Competing on cost
- Competitive advantage occurs when a business has an advantage over its competitors because of a factor which rivals cannot replicate and provides a cost or revenue advantage.
- Competitive advantage can occur when a business is able to compete on cost by offering products or services as a cost lower than all other competitors.
- For example, Aldi and Lidl compete on price and cost, which secures their market share as competitors are unable to compete at this level.


Differentiation
Differentiation
- Competitive advantage can occur when a business is able to compete on differentiation through offering products or services which consumers find superior to those offered by competitors.


Skill shortages
Skill shortages
- Skill shortages can affect a business’ international competitiveness.
- A shortage of skills within an industry, country or region can affect a business’ operations and lower efficiency, productivity and quality, which affects competitiveness.
- For example, the United Kingdom has a shorted of skilled nurses which reduced the international competitiveness of private healthcare businesses.
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
Jump to other topics
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
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