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Strategy to increase the competitiveness of ukrainian producers in the world market

Author

Listed:
  • Svitlana Tulchynska

    (National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Instituteâ€)

  • Dmytro Radkevych

    (Higher Educational Institution "Academician Yuriy Bugay International Scientific and Technical University")

Abstract

The article reveals the theoretical and practical aspects of the implementation of the competitive strategy of the enterprise in the foreign market in the context of globalization. Based on the research of domestic and foreign scientists, the basic strategies of increasing competitiveness were identified: leadership strategy based on low costs; individualization strategy; niche market concentration strategies; best value strategy; innovation strategy; focusing strategy. The foreign and domestic experience of formation of competitive strategy in the foreign market in modern conditions is investigated. It has been established that the competitiveness of the world's largest TNCs in recent years is increasingly associated with a sharp increase in internationalization of operations and the creation of global value chains based on a combination of own production and outsourcing. This model of production and logistics, based on the special global competencies of TNCs in the form of unique knowledge and know-how, intensive use of information and communication technologies, allowed TNCs to get rid of unprofitable operations and focus on the most profitable and promising areas. Successful TNCs such as Arrle, Google, Microsoft, IBM, Sony, Toyota Motor, BMW Samsung often use an innovative competitive strategy. Unlike foreign companies, domestic producers after signing a free trade agreement with the EU to become competitive in the European market increasingly began to use an integration strategy, which provides for horizontal integration with the acquisition or establishment of enterprises in the EU, which in turn reduces further the cost of customs duties, avoid export restrictions for farmers, and receive other benefits. The effectiveness of combining different competitive strategies to obtain significant benefits from activities in foreign markets has been proven.

Suggested Citation

  • Svitlana Tulchynska & Dmytro Radkevych, 2021. "Strategy to increase the competitiveness of ukrainian producers in the world market," Economic Synergy, Higher Educational Institution Academician Yuriy Bugay International Scientific & Technical University, issue 1, pages 29-37.
  • Handle: RePEc:bja:isteus:y:2021:i:1:p:29-37
    DOI: 10.53920/ES-2021-1-4
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    File URL: https://es.istu.edu.ua/EconomicSynergy/article/view/3/9
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    More about this item

    Keywords

    competition; competitiveness; world market; competitiveness strategy;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration

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