IMPROVING COMPETITIVE PERFORMANCE USING DISCRIMINANT ANALYSIS

Abstract

We aim through this study to identify the principal reasons behind the lack of competitiveness of small and medium enterprises, which can be noticed by comparison with the foreign companies and their products, that lack of competitiveness can be corrected using a pertinent competitive strategy based on the information collected by official sources, including statistics and Previous interviews with managers in the economic sector, as well as the opinions of the new Algerian investors, and based on this, a competitive analysis is conducted both on the managerial and competitive aspects taking into account the Algerian business climate, also propose a modification of the government SME’s strategy by organizing The market in a way that allows it to be monitored and adjusted flexibly. In this study, we have used the discriminant analysis as a tool for organizing ranking and classifier the existing and the new enterprises based on their competitiveness based on a chosen competitive factors that are adapted to the Algerian entrepreneurship case, also, increase competitivity by organizing the similar and complementary activities in a small geographic location to increase their competitiveness.