To be competitive is equivalent to a suitable aptitude to meet the demands associated with a discipline, a technique, an art or an organizational process. For experts, being competitive, from a strategic point of view, suggests the capacity and willingness of an organization to adapt and influence its environment, as well as to meet the functional challenges involved.
In theory, being competitive is the possibility of being in tune with a reality in such a way that it can consolidate its strengths and control its weaknesses, as well as take advantage of opportunities and control threats. The competitive forces set out as a paradigm according to Porter (2002), establish five forces that should define the competitive capacity of organizations. Understanding the competitive forces and their underlying causes reveals the origins of an industry's current profitability and provides a framework for anticipating and influencing competition (and profitability) over the long term.
A healthy industry structure should be as important to a strategist as the position of his company, hence understanding the structure of an industry is also key to effective strategic positioning.
Although the relevant environment of the firm is very broad and encompasses both social and economic forces, the key aspect of the firm's environment is the industry or industries in which it competes. The structure of an industry sector has a strong influence in determining the competitive rules of the game as well as the strategic possibilities potentially available to the company.