What Makes a Company Competitive?

What Makes a Company Competitive?

August 13, 2013

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We all know we must be competitive to survive in today’s business environment. But what exactly are the elements of a competitive company? I took some time recently to brainstorm with Rakuten executives and industry leaders and we have come up with four key factors that contribute to this:

1. People. A competitive firm recruits people with the right motivation and the right skills to integrate into the company. It also has a robust system of training and education.
2. Efficiency. Systems must work perfectly. This is true in all aspects of the business from operations to communications. To be sure we are at our peak efficiency, we must have measures of effectiveness in place at all levels.
3. Innovation. True innovation is more than just a well-funded R&D department. Innovation is also a cultural imperative. In addition to giving our people the right technology in which to innovate, we must also create a culture throughout the firm that embraces innovation and allows all employees to challenge the status quo and try new things.
4. Strategy. This must be more than vague goals. Strategy must integrate with the business model and provide a long-term road map for the company.

These four elements are the ones we apply in our company – but they can also be applied on a more personal scale. Are you competitive by today’s standards? Are you surrounded by the right people? Do you work at peak efficiency? Do you strive to innovate and encourage innovation in those around you? Do you have a long-term strategy to serve as your overall guiding force?
Competition is the name of the game at all levels, for individuals, for companies, even for countries. Focus on the key elements can help to create that necessary state.
My book: Marketplace 3.0