What are non-price competition factors

international competitiveness

1. Term: International competitiveness is given when companies can sell their products on foreign markets at prices that cover the costs incurred and also generate an appropriate return (Price competitiveness). Since non-price action parameters - such as product quality, time and reliability of delivery as well as financing conditions - are decisive for sales success, the concept of price competitiveness must be around the Not price competitiveness be expanded. The concept of international competitiveness is to be interpreted in relation to the company. The international competitiveness of a country results from the aggregation of the competitiveness of the companies in the country concerned.

2. The Influencing factors of international competitiveness are partly dependent on company size, partly independent of company size.
a) As of the Company size dependent influencing factors the strategy variables of a company in competition (price and non-price action parameters) are to be considered. Correspondingly, in his international study (The Competitive Advantage of Nations, London 1990), Porter distinguishes ideally between two strategies with which a company in dynamic competitive process Can gain advantages. A company can either try to produce known products more efficiently by taking advantage of mass production advantages (economies of scale) or through new products and through the differentiation to better satisfy the heterogeneous consumer preferences of products already launched on the market and to enforce higher prices in this way. According to Porter, it is above all the second strategy that a company has in the long term competitive advantages ensures that cost advantages in production are quickly caught up by the competition; in addition, the existence of economies of scale is limited.

b) To those of the Company size independent influencing factors include all measures with which economic policy influences the attractiveness of an industrial location if these decisions have an impact on the cost and revenue side of an internationally active company. The following Policy measures are of particular relevance: monetary and currency policy as well as their orientation towards the goal of price level stability, competition and trade policy, social, tariff, environmental protection, energy, education, industrial and tax policy as well as expansion and condition of the traffic and communication routes (infrastructure).

Of these economic policy measures, all companies - company sizesU.Ndependent - equally affected.

c) M. Porter has in his empirical study in the context of an international comparison four determinants of international competitive advantage worked out: the local site conditions such as infrastructure, wage level, training and technology standards as well as character traits of the employees (hard work, precision, intuition); the Demand conditions on the home market, i.e. the price and quality requirements of the domestic customers as the driving force in order to achieve the necessary competitive advantages abroad; the Intensity of domestic competitionwhich constantly stimulates the innovative strength of companies and promotes efforts in international competition; the existence of internationally competitive supplier industries and related industries from which important joint resources such as employees, patents and materials can be drawn.

d) Conclusion: The international competitive advantages of a company result from several of the empirically determined determinants. As a result, international competitiveness depends not only on the performance of a company - measured in terms of productivity - but also on influencing factors that primarily have nothing to do with its relative or absolute size. The question of a possible conflict of objectives between ensuring effective competition in the Federal Republic of Germany and improving the international competitiveness of German companies has therefore only rarely arisen in the context of merger control in the context of so-called ministerial mergers (ministerial approval) within the meaning of Section 42 GWB.