The 10 Cs of Global Competitiveness
Posted: Tue Dec 10, 2024 9:08 am
For Canadian businesses, whether small, medium or large, the path to profits is increasingly complex. It is a well-known fact among business owners and management who are responsible for their company’s top and bottom lines: the path is often winding and results are rarely guaranteed. In business, there is no such thing as chance. To achieve competitive advantage and the economic benefits that come with it, a business must have certain elements in place that will help it compete effectively and thrive, or in other words, grow sustainably.
Over the years, I have had the opportunity to become familiar with hundreds of companies in various sectors in Canada and abroad, whether by working with them, competing with them or evaluating them on issues such as operations, sourcing, direct investment, expanding into new markets and project development. Companies, industries and markets have unique characteristics. However, all companies share a set of factors that have a direct and significant impact on their ability to grow their revenues and profits. I call these:
10 C's of Global Competitiveness
To succeed in the global economy, you must meet or exceed your industry's benchmarks on all 10 Cs. Like the Own the Podium philosophy that guided Canada's efforts at the 2010 Olympic and Paralympic Winter Games, the 10 Cs lead to meeting a single benchmark: the global standard.
Here's an overview of each factor.
1. Competitive products and services
Many factors influence a purchasing decision, including price , quality, terms of sale and delivery, and customer service. Whether selling its products or services in domestic or foreign markets, a company must have a clear value proposition that meets or exceeds the requirements of its customers.
2. Critical mass
Canada is a country of small and medium-sized enterprises (SMEs). Of the approximately 1.1 million businesses with employees in the country, over 99% are SMEs (Innovation, Science and Economic Development Canada defines an SME as a business with fewer than 500 employees). To compete effectively in the long term, businesses must not only have sufficient human and financial resources, but also have the necessary operational capacity.
3. Contribution
The term "contribution" refers to the demonstrated commitment of management and staff to the planning and execution of the company's business activities. For example, if the business development manager of Company X spends more time selling the benefits of Market Y to his or her superiors than selling the company's products or services to potential customers in Market Y, Company X will have little chance of succeeding in Market Y.
4. Capital
In order to build a healthy and viable business, it is essential dentist database that capital is available and accessible. It is not surprising that SMEs still consider access to finance as a particular challenge in their operating environment. This challenge puts a brake on the growth of businesses, both in local and international markets.
5. Connections
The term “connection” refers to two concepts:
professional relationships and networks ;
technological capabilities.
To be globally competitive, a company must integrate both aspects.
6. Knowledge of foreign countries
As an exporter, importer or direct investor, it is important to have a good understanding of the country in which your company operates. To be able to manage business risks and enter a given market effectively , you need to know and fully understand the country's unique characteristics, including its history, culture, political and economic structure and orientation, as well as its industrial profile.
7. Business plan
Building a globally competitive business doesn't happen by accident. The plan serves as a foundation on which the business can build to grow. It varies depending on each company's business goals and objectives.
A company must develop a plan specific to each new foreign market it is targeting, whether in Canada or abroad.
8. Continuous innovation
Innovation is a key driver of increased productivity. In terms of the 10 Cs of global competitiveness, this translates into sustained, profitable sales. In the global economy, the pace of business is accelerating. Canadian companies must compete on innovation if they want to stay ahead.
9. Skills
In the global economy, competitive advantages are generated by knowledge. The term "knowledge" includes not only the acquisition of information, but also tacit knowledge and know-how . In this case, skills are acquired at the management level and then transmitted to the workforce. If a company's management does not have the skills and abilities needed to compete globally, the company will not be in a good position to generate profitable and sustainable sales.
10. Trust
If they are to build a globally competitive business, management and staff must be guided by a deep conviction that their organization has the capabilities to compete in global markets. This is not a blind belief, but rather a confidence that will develop when the other nine factors of global competitiveness are in place. This confidence helps create the winning conditions that help companies succeed in business, whether or not they have experience in international trade.
Over the years, I have had the opportunity to become familiar with hundreds of companies in various sectors in Canada and abroad, whether by working with them, competing with them or evaluating them on issues such as operations, sourcing, direct investment, expanding into new markets and project development. Companies, industries and markets have unique characteristics. However, all companies share a set of factors that have a direct and significant impact on their ability to grow their revenues and profits. I call these:
10 C's of Global Competitiveness
To succeed in the global economy, you must meet or exceed your industry's benchmarks on all 10 Cs. Like the Own the Podium philosophy that guided Canada's efforts at the 2010 Olympic and Paralympic Winter Games, the 10 Cs lead to meeting a single benchmark: the global standard.
Here's an overview of each factor.
1. Competitive products and services
Many factors influence a purchasing decision, including price , quality, terms of sale and delivery, and customer service. Whether selling its products or services in domestic or foreign markets, a company must have a clear value proposition that meets or exceeds the requirements of its customers.
2. Critical mass
Canada is a country of small and medium-sized enterprises (SMEs). Of the approximately 1.1 million businesses with employees in the country, over 99% are SMEs (Innovation, Science and Economic Development Canada defines an SME as a business with fewer than 500 employees). To compete effectively in the long term, businesses must not only have sufficient human and financial resources, but also have the necessary operational capacity.
3. Contribution
The term "contribution" refers to the demonstrated commitment of management and staff to the planning and execution of the company's business activities. For example, if the business development manager of Company X spends more time selling the benefits of Market Y to his or her superiors than selling the company's products or services to potential customers in Market Y, Company X will have little chance of succeeding in Market Y.
4. Capital
In order to build a healthy and viable business, it is essential dentist database that capital is available and accessible. It is not surprising that SMEs still consider access to finance as a particular challenge in their operating environment. This challenge puts a brake on the growth of businesses, both in local and international markets.
5. Connections
The term “connection” refers to two concepts:
professional relationships and networks ;
technological capabilities.
To be globally competitive, a company must integrate both aspects.
6. Knowledge of foreign countries
As an exporter, importer or direct investor, it is important to have a good understanding of the country in which your company operates. To be able to manage business risks and enter a given market effectively , you need to know and fully understand the country's unique characteristics, including its history, culture, political and economic structure and orientation, as well as its industrial profile.
7. Business plan
Building a globally competitive business doesn't happen by accident. The plan serves as a foundation on which the business can build to grow. It varies depending on each company's business goals and objectives.
A company must develop a plan specific to each new foreign market it is targeting, whether in Canada or abroad.
8. Continuous innovation
Innovation is a key driver of increased productivity. In terms of the 10 Cs of global competitiveness, this translates into sustained, profitable sales. In the global economy, the pace of business is accelerating. Canadian companies must compete on innovation if they want to stay ahead.
9. Skills
In the global economy, competitive advantages are generated by knowledge. The term "knowledge" includes not only the acquisition of information, but also tacit knowledge and know-how . In this case, skills are acquired at the management level and then transmitted to the workforce. If a company's management does not have the skills and abilities needed to compete globally, the company will not be in a good position to generate profitable and sustainable sales.
10. Trust
If they are to build a globally competitive business, management and staff must be guided by a deep conviction that their organization has the capabilities to compete in global markets. This is not a blind belief, but rather a confidence that will develop when the other nine factors of global competitiveness are in place. This confidence helps create the winning conditions that help companies succeed in business, whether or not they have experience in international trade.