COMPETITIVENESS IN SERVICES, DRIVING FORCE OF ECONOMIC DEVELOPMENT
The competitiveness of a nation is ensured by the profitable activity of firms. They strengthen their position in the domestic and international markets through global strategies whose purpose is to increase productivity and maintain it at a high level. For this, the company must take into account b...
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| Format: | Article |
| Language: | English |
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University of Petrosani
2012-12-01
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| Series: | Annals of the University of Petrosani: Economics |
| Subjects: | |
| Online Access: | http://www.upet.ro/annals/economics/pdf/2012/part4/Pirvu-Danatie.pdf |
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| _version_ | 1850085857967472640 |
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| author | RAMONA PÎRVU MARIA DANATIE ENESCU |
| author_facet | RAMONA PÎRVU MARIA DANATIE ENESCU |
| author_sort | RAMONA PÎRVU |
| collection | DOAJ |
| description | The competitiveness of a nation is ensured by the profitable activity of firms. They strengthen their position in the domestic and international markets through global strategies whose purpose is to increase productivity and maintain it at a high level. For this, the company must take into account both the internal economic environment which ensures operating conditions and the external economic environment’s development. The five competitive forces determine the industry’s profitability because they configure firms’ selling prices, production costs and investments needed to be competitive in the field. The threat of new competitors limits the potential profit since they involve new production units and the opportunities for market expansion. Economic strength of the buyers and bidders attracts profits to them. Rivalry among existing competitors erodes profits by increasing costs of competition (like advertising, selling expenses or those required for research and development). The presence of substitutive goods or services limits competitors’ prices through buyers’ transfer phenomena limiting and eroding market share of industry / firm in the total production output. |
| format | Article |
| id | doaj-art-3d9a209e8c2f41c1941b9593e859f8a1 |
| institution | DOAJ |
| issn | 1582-5949 2247-8620 |
| language | English |
| publishDate | 2012-12-01 |
| publisher | University of Petrosani |
| record_format | Article |
| series | Annals of the University of Petrosani: Economics |
| spelling | doaj-art-3d9a209e8c2f41c1941b9593e859f8a12025-08-20T02:43:38ZengUniversity of PetrosaniAnnals of the University of Petrosani: Economics1582-59492247-86202012-12-01XII4203210COMPETITIVENESS IN SERVICES, DRIVING FORCE OF ECONOMIC DEVELOPMENTRAMONA PÎRVU0MARIA DANATIE ENESCU1University of Craiova, RomaniaUniversity of Craiova, RomaniaThe competitiveness of a nation is ensured by the profitable activity of firms. They strengthen their position in the domestic and international markets through global strategies whose purpose is to increase productivity and maintain it at a high level. For this, the company must take into account both the internal economic environment which ensures operating conditions and the external economic environment’s development. The five competitive forces determine the industry’s profitability because they configure firms’ selling prices, production costs and investments needed to be competitive in the field. The threat of new competitors limits the potential profit since they involve new production units and the opportunities for market expansion. Economic strength of the buyers and bidders attracts profits to them. Rivalry among existing competitors erodes profits by increasing costs of competition (like advertising, selling expenses or those required for research and development). The presence of substitutive goods or services limits competitors’ prices through buyers’ transfer phenomena limiting and eroding market share of industry / firm in the total production output.http://www.upet.ro/annals/economics/pdf/2012/part4/Pirvu-Danatie.pdfservicesdevelopmentcompetitiveness |
| spellingShingle | RAMONA PÎRVU MARIA DANATIE ENESCU COMPETITIVENESS IN SERVICES, DRIVING FORCE OF ECONOMIC DEVELOPMENT Annals of the University of Petrosani: Economics services development competitiveness |
| title | COMPETITIVENESS IN SERVICES, DRIVING FORCE OF ECONOMIC DEVELOPMENT |
| title_full | COMPETITIVENESS IN SERVICES, DRIVING FORCE OF ECONOMIC DEVELOPMENT |
| title_fullStr | COMPETITIVENESS IN SERVICES, DRIVING FORCE OF ECONOMIC DEVELOPMENT |
| title_full_unstemmed | COMPETITIVENESS IN SERVICES, DRIVING FORCE OF ECONOMIC DEVELOPMENT |
| title_short | COMPETITIVENESS IN SERVICES, DRIVING FORCE OF ECONOMIC DEVELOPMENT |
| title_sort | competitiveness in services driving force of economic development |
| topic | services development competitiveness |
| url | http://www.upet.ro/annals/economics/pdf/2012/part4/Pirvu-Danatie.pdf |
| work_keys_str_mv | AT ramonapirvu competitivenessinservicesdrivingforceofeconomicdevelopment AT mariadanatieenescu competitivenessinservicesdrivingforceofeconomicdevelopment |