Our View of Competitiveness: System Dynamics

Competitiveness is linked to the development of a competitive advantage, and is often conceptualized as the capacity of the organization to efficiently amalgamate its resources and capabilities seeking to create value-adding competencies.

Successful competitiveness does not take place in a vacuum. Businesses perform a wide variety of processes and operate in complex environments. Collecting the necessary inputs is not enough to succeed. Organizations have different strengths and weaknesses, and businesses pursuing a competitive advantage must also demonstrate the ability to alter available resources and capabilities so that their potential can be fully exploited.

This mix of resources and capabilities is what we consider the drivers of competitiveness. Thus, to us:

Competitiveness is the mutually dependent bundle of ten pillars—human capital, product, domestic market, networks, technology, decision making, strategy, marketing, internationalization, and online presence—that allow a firm to effectively compete with other firms and serve customers with valued goods/services.

The GCP methodology
In an international effort, we collect data from different countries in Europe (Hungary, Spain, France, Bosnia, Czech Republic, and Russia) and Latin America (Colombia, Costa Rica, Mexico, and Brazil)
We employ a system dynamics methodology to build a complex Competitiveness Index formed by 10 competitive pillars
Our Competitiveness Index is a tool that measures the health of businesses' competitive position