Modern approaches to the formation of enterprise competitive strategy

Inna Kuznetsova
Doctor of Economics, Professor, Head of Management of Organizations Department, Odessa National Economic University, Ukraine, e-mail: inna.stream27@gmail.com, ORCID ID: https://orcid.org/0000-0003-3017-6165

Valentyna Gorbatiuk
Postgraduate Student of Management of Organizations Department, Odessa National Economic University, Ukraine, e-mail: valentinasidorenko01@gmail.com, ORCID ID: https://orcid.org/0000-0003-4476-2616

Cite this article:

Kuznetsova, I., Gorbatiuk, V. (2020). Modern approaches to the formation of enterprise competitive strategy [Suchasni pidkhody do formuvannia konkurentnoi stratehii pidpryiemstva], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3-4 (74-75), pp. 109–120.

Abstract

The article considers the approaches to the formation of a competitive strategy. The purpose of the article is to systematize existing approaches to the formation of a competitive strategy and highlight modern competitive strategies. The essence of the concepts «strategy» and «competitive strategy» is considered. Based on a critical analysis of the essence of «competitive strategy» concept, three approaches to its interpretation by various researchers are identified: it is aimed at creating a stable position in the market, provides for the creation of a sustainable competitive advantage, and it is aimed at achieving superiority over competitors. Based on the results of interpretations systematization and analysis of the essence of «strategy» concept, the author’s definition of competitive strategy as a direction of forming a competitive advantage for creating a unique value of the product is proposed. The process of choosing a competitive strategy by M. Porter has been analyzed and it has been established that after its development, further continuous improvement is necessary. The process of choosing a competitive strategy by M. Porter is analyzed and it has been established that after its development, further continuous improvement is necessary. The main approaches to the formation of a competitive strategy, which considering modern business trends are investigated: industry positioning, competitive cooperation, value disciplines, evolutionary theory and key competencies. The essence of the considered concepts, their advantages and disadvantages are clarified and two types of competition, typical for these concepts are identified, namely: tough competition; competition and cooperation. A number of competitive strategies, which take into account the specifics of modern enterprises, are investigated and the essence, necessary resources, output characteristics and type of competition for each of them are highlighted. It was substantiated that each of there searched strategies implements one of the basic competitive strategies: cost leadership or focusing. The cost leadership strategy using at domestic enterprises, which is the most acceptable for the modern realities of the functioning and development of business, is proposed.

Keywords

strategy; competitive advantage; modern competitive strategy; cost leadership.

JEL classification: L130; M210; DOI: https://doi.org/10.33987/vsed.3-4(74-75).2020.109-120

UD classification: 314.716:005.332.4

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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