VolRC RAS scientific journal (printed edition)
RuEn

Journal section "Innovation potential of territorial development"

Methods of Enhancing Enterprise Competitiveness

Voronov D.S., Krivorotov V.V.

5 (91), 2017

Voronov D.S., Krivorotov V.V. Methods of Enhancing Enterprise Competitiveness. Problems of Territory's Development, 2017, no. 5 (91), pp. 59-64

Abstract   |   Authors   |   References
The purpose for the study is to formalize the main stages of the process of conducting competitive analysis and assessing enterprise competitiveness, as well as establish the correlation between them during the development of the informational background to formulate and implement a company’s competitive strategy. The study describes the main stages of the algorithm of increasing enterprise competitiveness: competitive analysis, evaluation of enterprise competitiveness, development and implementation of the company’s competitive strategy. The authors demonstrated that to ensure high enterprise competitiveness management actions must be repeated many times. It is concluded that when developing the company’s competitive strategy it is essential that the sequence actions is maintained. It has been found that construction of the evaluation system of indicators of competitive environment using the principles of a balanced system of indicators helps monitor the situation in the sphere. The methodological framework for the formation of a competitive strategy lies in assessing the competitiveness of a business entity. The authors characterize the main approaches to assessing enterprise competitiveness. It is proved that the greatest opportunities arise when applying the dynamic approach to assessing competitiveness. It is demonstrated that in order to assess the competitiveness which is most likely to help develop a successful competitive strategy requires the most precise identification of the main competitors of an enterprise. The authors argue that methods of traditional investment analysis are not applicable to marketing projects and activities aimed at establishing partnerships or financial stability. At the same time, their necessity is obvious from the point of view of strategic management. Therefore, in such cases, performance analysis of the proposed activities should be based on the assessment of their impact on the company’s competitiveness. Accordingly, the authors propose quantitative criteria for evaluating the effectiveness of measures to improve competitiveness. The calculations confirming the practical applicability of the proposed indicators are presented. It is concluded that in today’s economy, the competition is usually won by enterprises which constantly monitor the competition, rather by those possessing new technology or access to resources. The research results may be used in order to form an optimal portfolio of strategic measures to ensure competitiveness of companies and industries given the limited investment budget

Keywords

competition, enterprise competitiveness, assessment of enterprise competitiveness, dynamic method of assessing enterprise competitiveness