The Dynamics of Competitiveness-Interactive Process between Markets and Assets

Interactive Process between Markets and Assets D N Sen Gupta Long-term competitiveness of a firm is reflected in its ability to sustain above normal profitability over time. Firms that remain competitive and profitable over time are likely to exhibit four characteristics, namely, increasing productivity of form and capital, continuous changes in their mix of assets and markets, a steady upgradation in markets and assets, and growth. Moreover, in contrast to equilibrium or life-cycle models, process models, by focusing on the behaviour of firms, provide a flexible analytical framework for studying historical evolution of a firm and understanding why different firms perform differently.