Amarket’s competitiveness determines its productivity
level, which in return establishes the wealth
that a nation can create for its citizens. Unlike before,
the productivity is no longer assessed by looking at a
nation’s accumulated capital but rather at the level of
retained/acquired know-how within its labor force.
Concurrently, we see an increased emphasis on/influence
of advanced technologies -nanotechnology,
genetics, and alike- in some key manufacturing sectors,
that will have significant consequences for the
respective industries in the near future.
The nature of competition as a driver of productivity has
also evolved to include a wider spectrum of factors than
ever before. Companies are no longer compared merely
by their cost efficiencies and product quality, but evaluated
within the context of their markets- considering their
market’s prospects for sustainable growth and utilization
of its factors of production.
Additionally, considerations such as a nation’s education
level, technological sophistication, political and economic
stability, as well as the transparency of its regulatory system
became of greater importance when assessing a
company’s competitive stance.
As much as these macro conditions may be difficult to
shape in the short-run, it is critical for individual companies
to be conscious of these factors when adopting strategies.
Nowadays, companies need to invest in their human capital,
periodically renew their business models, prioritize
innovation for value-add offerings, and look to expand
their markets to diversify their exposure to specific macroeconomic
environments.
Turkey with its 75m population also needs to move towards
a value-add economy by focusing on education and
skill-building of its young labor force in order to strengthen
its competitive position in world trade, and become an attractive
market of choice for international businesses.