Social complexes as increasing businesses competitiveness factor Cover Image

Socialiniai kompleksai kaip verslo subjektų konkurencingumą didinantis veiksnys
Social complexes as increasing businesses competitiveness factor

Author(s): Valentinas Navickas, Rima Kontautienė
Subject(s): Supranational / Global Economy, Business Economy / Management, Financial Markets
Published by: Lietuvos verslo kolegija
Keywords: consumer need; competitive advantage; social complexes; strategy and competitiveness;

Summary/Abstract: Global changes in today’s markets are becoming increasingly important factor for business opportunities and prospects. Businesses with the intention to remain competitive in the global marketplace must be able to withstand the increasing competitive pressure resulting from the goods and services, liberalization of markets. Businesses must be able to meet increasingly stringent operating conditions and to use the conditions for business creating by social factors. In today’s global marketplace for ensuring a successful competition, businesses must be flexible and dynamic and be able to respond quickly to market changes. Given the desired position in the market, a business company has to take a clear competitive strategy to gain a long-term competitive advantage. In today’s global marketplace for ensuring a successful competition, businesses must be flexible and dynamic and be able to respond quickly to market changes. Given the desired position in the market, a business company has to take a clear competitive strategy to gain a long-term competitive advantage. Technological, market and societal changes force companies strategically adapt for successful competition the future. The more flexible business entity, the more it may be easier to regulate their activities. Businesses with the ability to respond to social changes in the environment are beginning to look for ways or areas, which could divert their resources and compete Problem is: On the one hand, changes in the market offer many new features: a very serious global competition, innovative companies, change management, new business development, risk-based strategies, a promotion of social initiative. On the other hand, the changes pose challenges: how to choose a strategy for the organization to remain competitive, how to use social factors for the attainment of competitive advantage under modern business conditions. The subject of investigation is social complexes. Research purpose is to explore the social complexes as increasing business competitiveness’ factor Tasks of the research are: 1. To analyze the general competitive strategies; 2. To investigate the acquisition of the competitive advantage through the social complexes; 3. To envisage the perspectives of social complexes development in Lithuania. The novelty and main results of research are: By analyzing the general competitive strategies wherefore the business entity acquires a long-term competitive advantage: cost leadership, differentiation and concentration, the authors found that for the creation of unique value to the consumer it is very important to find out customers needs and to make out the market segment that a business can serve better than competitors. The selection of strategy should be conditioned by analysis of business and consumer relationships complex. The company concentrated its efforts on any aspect of the narrow field of competition, for example by choosing the social dimension segment of the market, can create a unique value to the consumer and at the same time to gain a long-term competitive advantage. Modern business must take into account the wider social interest because it is the foundation of business success, without which the business is not be able not continue the development. Considering unmet social needs and social problems business can seek a competitive advantage by focusing on the social dimension segments of market. Businesses that can to attract stakeholders for social problems’ solution by establishing longterm relationships create social complexes, depending on time and based on reputation and trust resources. Responsibility in relationships with stakeholders highlights the excellent management skills, which determine the direct cost reductions. In this way, social complexes development is to be treated as a business competitiveness-enhancing factor. The authors of the article the analysis of social complexes as a increasing business competitiveness factor refers to as the novelty of study and feels that this is leading to new approaches to social problems’ solving through social complexes by emphasizing on their impact on business competitiveness. Businesses competitive factors affect the competitiveness of the country, therefore and the development of social complexes is encouraged throughout the country. Authors of the article points out that in Lithuania the development of social complexes is the most associated with socially responsible businesses. By expansion of socially responsible business practices it is likely to intensify the development of social complexes that are useful not only to stakeholders for social problems solution, but also as a business competitiveness increasing factor.

  • Issue Year: 19/2011
  • Issue No: 2
  • Page Range: 139-145
  • Page Count: 7
  • Language: Lithuanian