Causes and consequences of business competitiveness

Abstract

The competitiveness of the companies implies to recognize that this is the result of several components, so the analysis involves considering the productive relationships that are developed in the company itself, in addition to its relationship with the environment, including competitors, suppliers, customers and government. This paper reviews the theories that explained the operation of the company, placing special emphasis on those that reveal the causes of business competitiveness. The starting is the neoclassical economic theory, which is the first approach to the study of the company, to the explanation of the reduction of costs and the maximization of profit, from the assumptions proposed in this theory.