The topic of the thesis is how to increase the competitiveness of the business system. Business systems face great challenges in today’s business world, every slightest mistake can cause great consequences for business. It is therefore important to consider how to prevent business from going in the wrong direction. At the beginning of the thesis is an explanation of the concepts of competitiveness and it is written what are the general competitive strategies: cost leadership strategy, differentiation strategy and focus strategy, these are some of the most important strategies used in business systems. Then, the thesis explains the PEST and SWOT analysis, where PEST is influenced by political, economic, social and technological factors, while the SWOT analysis assesses the strengths and weaknesses and opportunities and threats to business systems. It then explains how human resource development affects competitiveness as well as research and development. Technology is one of the main factors that increases the competitive advantage of a business system, which is why Industry 4.0 and the technology used in that industry are explained, and also artificial intelligence is more detailed explained because of many recent applications. Then the link between innovation and competitiveness is given. Then some of the more important methods to increase competitiveness are mentioned: benchmarking, kanban, kaizen. The thesis also contains statistical data from Eurostat, which presents data on the industry in Europe, Germany and Croatia, as well as data on the number of people employed in certain industries, production values and the number of business systems dealing with certain industries. Then, a questionnaire with the answers of the three business systems was presented, and later an analysis of these answers and a comparison of the business systems are presented.