COMPETITIVE POSITIONING OF AGILE COMPANIES

Authors

  • Nevena Kapor Faculty od Economics Pale, University of East Sarajevo, Bosnia and Herzegovina

Keywords:

agility, flexible organization, competitiveness

Abstract

Agility is the ability of a company to take advantage of changes in its business environment quickly. Since the market is very flexible, therefore, participants in market transactions expect an innovated and digitalized service / product. Customer behavior and preferences are constantly changing, while companies are increasingly adapting their offer in real time to localized, smaller customer segments (market niches). Meanwhile, it is difficult for companies to establish a lasting competitive advantage. Competitors from the same industry can repeat ideas very quickly. In such a turbulent environment, it is crucial to feel the changes in the market and to use these changes quickly and efficiently in a recognizable way. Achieving strong competitiveness and superior business performance is a major challenge for firms, especially in a volatile business environment. Customer requirements are becoming more dynamic, and the frequency of changes in the environment is increasing significantly. This leads to growing complexity and uncertainty in the market thus increasing competition. The competitive advantage has the company that achieves the best relationship between the perceived value (sales prices) and the level of production costs, and this is associated with the concept of strategy, which is largely a matter of market choice and price - internal angle. On the other hand, strategy is the way in which a company fights competitive forces (market), which represents an external angle. The relative position of the company in the industry gives the choice of competitive advantage (cost leadership versus differentiation) and its choice of competitive scope. Competitive scope differs between companies targeting broad industry segments and companies focusing on a narrow segment. Certain organizational capabilities enable the company to respond appropriately to rapidly changing environmental conditions and to use these changes as business opportunities. In this context, a high degree of agility is emphasized as a useful ability when the goal is to take advantage of business opportunities quickly. Many researchers have confirmed the high impact of an increasingly dynamic business environment and suggest agility as a differentiation strategy. The process that is repeated in the concept of agility requires constant improvement at all organizational levels. Often insufficiently explained and uncertain information provided to decision makers makes the process even more difficult. A review of published empirical and practical articles to study the concepts of organizational agility and transformation as critical factors contributing to sustainable competitive advantage, organizational performance and survival in increasingly competitive global contexts, emphasizes how organizations overcome the challenges posed by their traditional structures, cultures and models. leadership and identify the dynamic competencies that need to be developed to achieve a higher level of corporate agility

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Published

2022-02-18

How to Cite

Kapor, N. (2022). COMPETITIVE POSITIONING OF AGILE COMPANIES. KNOWLEDGE - International Journal , 50(1), 31–37. Retrieved from https://ikm.mk/ojs/index.php/kij/article/view/4908