The Framework.
The background of the Competitiveness Finder and the four competitive arenas.
The Competitiveness Framework and the Competitiveness Finder developed by experts from Johannes Kepler University are based on key insights from strategic management. Four key factors of strategic success are at the heart of competitiveness in a digital and interconnected world.
Rivalry
The ability to stand out and compete against others.
Cooperation
The ability to collaborate with others and achieve goals together.
Continuity
The ability to build on proven strengths and continue to build on previous successes.
Strategic Choice
The ability to actively shape the future and break new ground.
In a digital and interconnected world, the traditional division of inside (company) and outside (environment) is becoming increasingly irrelevant. New products, services, and business models are changing industries and creating new arenas of competition. Different rules apply, and new competencies are required to score in the market.
The question arises to what extent it is better to generate added value for customers alone or together with others, whether it is better to rely on known strengths and existing competencies or to throw the old overboard and break new ground. The Creating Competitiveness Framework addresses these questions and shows what is essential in each of the four competitive arenas.
RIVALRY - COOPERATION
Western economies are characterized by rivalry. In many minds, it is anchored: "Only one can win!" The others are the losers. High rivalry and cutthroat competition based on prices characterize the competitive situation in many industries.
Industry 4.0, the Internet of Things, and an increasingly interconnected world make it difficult for lone wolves to compete. In many cases, the increasing pace and complexity require joint action on the market. Whether along the value chain, with competitors, or in the value network - cooperation is a success factor for many companies to achieve their goals.
STRATEGIC CHOICE - CONTINUITY
A strategy that builds on the company's existing strengths has always been seen as promising. This is especially true in largely stable business environments. Known paths are deepened, experience and core competencies are leveraged, and unique market positions are consolidated. However, in turbulent times, it can be risky to rely exclusively on what has been successful to date.
The creation of something new often goes hand in hand with the destruction of previous success. Digital and other technologies, new products, services, and business models lead to transformation in many sectors. This is possible when companies have the strategic choice to enforce new products, services, and business models or collaborate with partners to drive innovation and build markets.
COMPETITIVE ARENAS
Building on the four key factors of strategic success, the CC framework shows four competitive arenas. In each of these arenas, specific rules of the game apply. Understanding these and acting accordingly is crucial. In each arena, certain strategy tools and management methods are particularly useful and others less so.
Acting strategically means setting those activities that bring advantages in the respective arena. It is critical for success to have the competencies that bring advantages in the respective competitive arena.