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Competitive Power of Companies and Industries: A Methodical Approach to Evaluation


  • South Ural State University (National Research University), Department of Economic Theory, Regional Economy, State and Municipal Administration, Chelyabinsk, Russian Federation


Background/Objectives: This article justifies a methodical approach and develops a model to evaluate competitive power of companies and industries for optimum allocation of corporate resources for monitoring, governmental program measures, stimulating growth of competitive positions of individual industries and economy as a whole. Methods: The basic theory of corporate function is a methodical ground for competitive power of companies and industries. Resource efficiency is presented by production, financial and investment indicators. A multiplicative model for companies and industries’ competitive power evaluation and static and dynamic alternatives have been provided. This model has been appraised using Russian processing industry as an example, based on the statistical database of the Russian Federation Federal State Statistics Service. Findings: This approach differs in understanding the competitive power of companies and industries as a way of optimized utilization of national economic resources. For the state, this means a tool of financial stimulation of industrial areas of high competitive power. The suggested model of competitive power evaluation allows performing industrial diagnosis of utilization of production, financial and investment resources of a company. Identification of company’s positions and comparison of resource efficiency provide the basis for distinguishing between the impact of internal and external conditions on any changes in positions of the company and industry as a whole over the short and long term. Applying the suggested method one can determine causes of any shifts in companies’ competitive advantages and discover resource limitations of the competitive power. An integral competitive power indicator for companies and industries provides a basis for creating a monitoring database of competitive power ratings for industries, enhancing transparency of national companies’ success, as compared with similar foreign industrial companies; governmental support of the best companies on a competitive basis. Improvements: The article broadens importance of the resource-oriented approach to evaluation of competitive power. The suggested evaluation model can be used as a tool for stimulating best companies and industries for governmental regulations of the economy’s competitive power.


Competitive Advantages, Competitive Power, Competitive Power Evaluation Model for Companies and Industries, Economy Resources.

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