The Age of Cost Competitiveness

Abstract

World economies are fast getting integrated with each other through the forces of globalization. Consequently, due to entry of many world-class business entities into the country, competition between business enterprises has intensified in the market, customers have become aware of many choices, importance of comparative advantage and brand value has diminished. In order to survive in the new complex situation, companies are focusing on improving competitiveness, which in turn is basically cost competitiveness. This require a comprehensive approach to costs, pricing, cash, and capital - covering both the company and its supply chain.

Competitive situation keep changing at quick frequency ; accordingly, there should be flexibility in the organization to more quickly learn, change, and adapt to the new environment. The cost and management accountant, by dint of his professional expertise and knowledge about the dynamics of the market and new innovative and technological breakthroughs taking place in the world, can assist the company to formulate an effective and comprehensive business strategy for the company for its survival and growth.