GLOBAL COMPETITIVENESS

Presented By: Arvinder Kaur Roll No. 2002 MBA I

 Meaning of competitiveness

Pillars of global competitiveness

Global competitiveness index

Indias competitiveness
Future of India competitiveness Factors considered for competitiveness

+ The International Institute for Management

Development defines competitiveness as, A field of economic knowledge which analyzes the facts and policies that shaped the ability of a nation to create and maintain an environment that sustains more value creation for its enterprises and more prosperity for its people.

+ "The set of institutions, policies, and factors

that determine the level of productivity of a country".

Institutions Infrastructure Macroeconomic stability Health & primary education Higher education & training Goods/services market efficiency Labor market efficiency Financial market sophistication Technological readiness Market size Business sophistication Innovation

Country
Switzerland Singapore

Rank 2011-2012
1 2

Rank 2010-2011
1 3

Sweden
United States Japan China India

3
5 9 13 56

2
4 6 27 51

RANK (out of 142 countries) GCI 2011- 2012 GCI 2010-2011(out of 139) GCI 2009-2010(out of 133) BASIC REQUIREMENTS (60%) Institutions Infrastructure Macroeconomic environment Health & primary education EFFICIENCY ENHANCERS (35%) Higher education & training Goods market efficiency Labor Market efficiency Financial market development Technological readiness Market size INNOVATION & SOPHISTICATION FACTORS (5%) Business sophistication Innovation 56 52 49 91 69 89 105 101 37 87 70 81 21 93 3 40 43 38

+ Cost effective & skilled manpower

+ Optimum utilization of raw materials

+ Domestic market size

+ Demographic dividend
+ Employment generation + Social development + Infrastructure development

 Crucial
Leadership Supremacy

Factor creation
Domestic rivalry Local market Bench marking

Firms can increase their global competitiveness by:

Rationalization output to get rid of high cost plants Relocating to places where labor costs are lower Process innovation Product innovation Incorporating the latest technology into investment Sourcing from abroad where appropriate Seeking out new market opportunities Improving relationships with suppliers and customer