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Formation of the Company Leadership in the Competitive Strategy

In: Sustainable Leadership for Entrepreneurs and Academics

Author

Listed:
  • Evgeny Popov

    (Institute of Economics, Ural Branch of RAS & Ural Federal University)

  • Vadim Krivorotov

    (Institute of Economics, Ural Branch of RAS & Ural Federal University)

  • Natalia Starodubets

    (Institute of Economics, Ural Branch of RAS & Ural Federal University)

Abstract

Our paper discusses the scientific and methodological foundations of the formation of the strategic competitive advantages of a firm in order to achieve its leadership position in the market. At the same time, the competitive potential of a firm is assessed from the standpoint of the influence of many factors which, according to the authors, can be combined into two fundamental integrated blocks. One of these blocks consists of basing factors that characterize the system of determinants of competitive advantages of the firm. The other block consists of the factors of the competitive environment in which the firm operates. These blocks of factors form two sources of competitive advantages of a firm: operational efficiency and the strategic positioning in the market. In turn, the strategic positioning incorporates the two most important components of the firm’s activities: innovation activity and adaptability, which together define a competitive strategy of its development. Moreover, it becomes apparent that the basis of adaptability of the firm lies in active innovation, influencing all areas of its operation and related to all innovations, providing savings in production costs, as well as product promotion and additional profit creation. In addition, we propose a formalized expression of the exogenous transaction function of the company that allows us to evaluate the transaction costs of the interaction of firms.

Suggested Citation

  • Evgeny Popov & Vadim Krivorotov & Natalia Starodubets, 2019. "Formation of the Company Leadership in the Competitive Strategy," Springer Proceedings in Business and Economics, in: Wadim Strielkowski (ed.), Sustainable Leadership for Entrepreneurs and Academics, pages 255-262, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-15495-0_26
    DOI: 10.1007/978-3-030-15495-0_26
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