Why Study Competitive Strategy and the Free Enterprise System? |
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Section by Roy Chapin on Competitive Advantage and Competitive Strategy for the final RAATP project book. To be Inserted after REC's introductory narrative and before the activities section. Rationale: Competition, along with private ownership of the factors of production and prices being set in the market place, is one of the three basic tenets of the Free Enterprise System. Without competition there is little incentive to improve customer service, improve the quality of the good or service supplied and to reduce the cost of production by looking for ways to improve efficiency. This lack of competition impedes the re-allocation of a country's resources to their best possible use in response to customer demands and reduces the standard of living of the population. Competition is therefore good for a country and should be encouraged by government, business and the consumer. Russia does not have adequate competition presently as its economy moves from being state owned and centrally planned to a market economy. Understanding the basic tenets of a free enterprise system, including competition, by government officials, business people and the Russian people is important to help Russia improve the standard of living of its citizenry. These concepts of a free enterprise system can be learned and should be taught. It is helpful for an individual business to understand ways to improve its competitiveness and to serve customers better if it hopes to prosper on the world stage. Russia's infrastructure will be improved as competition becomes more prevalent. Objectives:
Competencies: At the end of this session the participants should be able to:
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© Roy Chapin, 2004 |