A company gains economic value and competitive value in markets when its goods and services are greater than the cost of producing them. The use of better technology makes the use of resources more efficient which betters a firm’s performance in competitive markets. Competitive advantage is gained when consumers receive goods at attractive prices and the company makes a reasonable margin on the sale of its products and services. This enables them to make better decisions which secure their present and the future efficiency of the organization. The company gains its competitive edge when it pays an equitable price for the acquisition of resources and processes and markets its products above the cost of acquisition and production.
When a product satisfies the needs of the consumer without the loss of capacity to also satisfy future needs, then it will gain and maintain its competitive capacity even in the future because buyers will pay a better price for its products. The reliance of ‘business’ success means having a “competitive advantage” which means being the best among the available alternatives and in the process achieving an advantage. It is not being ‘just as good’ as the competition but better. Successful competitive advantage falls to these who deliver a product or service that is better in some way and more meaningful to the target audience because the best quality is defined by the consumer and encompasses different elements of the marketing mix – product, price, place and promotion.
Another major effect of competitiveness is its management as managers are the tools with which organizations pave their way towards success and attain the goals and objectives and objectives of the organization this creates “business value” for the organization. Business value means any form of value that increases the long term value and chances of success of the business. Business value envisages more than the financial worth of the business but refers to other equally aspects of the business such as customer loyalty and goodwill, satisfied employees, credibility with suppliers, management expertise and skills.
The creation of value also encompasses transformation of managers into effective leaders and how this transformation influences their followers has been studied in different contexts in the past. In this context, many researchers have put forward their studies with differing opinions and conclusions with respect to different styles of leadership and their impact on employee performance. Some argue that certain leadership styles have a positive impact on the performance levels of employees and others have negative impact, whereas some researchers have completely contrasting point of views in this regard.