Strategy gear of ensuring the competitiveness of economic entity on national and international levels

• Main Author: M.M. Radieva
• Format: Article
• Language: English
• Published: Zhytomyr Polytechnic State University 2020-08-01
• Series: Економіка, управління та адміністрування
• Subjects: diversification; competitive preference; concentration; competitiveness; gear; strategy
• Online Access: http://ema.ztu.edu.ua/article/view/185196/184826
• ISSN: 2664-245X; 2664-2468

Based on the system approach, the article proposes the conceptual approach to the strategy gear of ensuring the competitiveness of economic entity, which represents the system of views on driving motives and methods of reaching the enterprise goal through methodological substantiation of forming, introduction and assessment of socio-economic effect of competitive policy. The approach encloses the problems about the possibility and necessity of managing the processes of ensuring the competitiveness on the level of economic entity; the identification of subject and object, the types of strategy for ensuring the competitiveness. The actions concerning the formation of methodological basis of managing the strategy for ensuring the competitiveness of economic entity are one of the elements. Based on the management principles and methods, the gear of managing the strategy ensures the socio-economic effect after the competitive strategy introduction through the competitive policy formation and implementation. The enterprise goal is structured as a hierarchic chain of interim results, to reach which the author develops the system of strategies: strategic outlook (growth, stabilization, and reduction), strategic alternative (concentration, diversification), competitive strategies (leadership at costs, diversification), functional strategies (financial, personnel, anti-crisis, organizational, innovative, quality management, resource, foreign economic, social, ecological, production, marketing). The gear application can ensure reaching the enterprise goal through the realization of the hierarchic chain «aim – factors of competitive benefits – strategy – competitive benefit – competitiveness -result». The approach proposed allows to determine the methods of ensuring the competitiveness of economic entity as a result of its active market policy, ascertain the causes and conditions for emergence of competitive benefits, develop competitive strategies on the formed analytical base. The paper analyzes the pattern structural growth paths of successful economic entities on the market, which inclined to the preservation of their organizational structure, and, simultaneously, the changes in the horizons of existence set up the basis for the structure transformation as a response on the complication of managerial tasks. As a means of implementation of strategic alternative in the regulated system of enterprise strategies, the author proposes to introduce diversification, defined as a variety of results on the market, but not the production inside an enterprise.