Several factors of
competitiveness are involved in shaping trade patterns:
- Price/cost competitiveness: the interaction of competitive factors linked to input costs (raw material prices, wages, and the cost of capital), productivity, and profit margins.
- Technological competitiveness: the ability to provide leading-edge technical capabilities, superior performance, or reliability.
- Commercial competitiveness: marketing, distribution, and associated services that increase the value for the consumer.
(adapted from the Institute for Trade and Commercial Diplomacy,
Competitiveness,
Glossary, Economic & Commercial Concepts & Terms, 2004, visited 2011-002-15)
Competitive strategies can include research and development (R&D), performance management, benchmarking, restructuring, delocalization, outsourcing or any other measure aimed at gaining an advantage over a competitor.