Academic journal article European Research Studies

Methodology of Formation and Realization of Competitive Strategy of Machine Building Enterprises

Academic journal article European Research Studies

Methodology of Formation and Realization of Competitive Strategy of Machine Building Enterprises

Article excerpt

JEL Classification: 0 400, 0 430

Introduction

At present, actuality of development of competitive strategy of enterprise is obvious. Competitive strategy is a highly effective market tool for increase of competitiveness of enterprise. The main goal of competitive strategy is formation of competitive advantages, methods, and means for conduct of competitive struggle, which would allow enterprise to function in the market in long term and in a stable basis [Egorova, A.O., Kuznetsov, V.P. 2014].

Issues of theory of competition, strategic management, and planning are covered in works of many Russian and foreign scientists/specialists: G.L. Azoeva, D. Aacker, R. Akoff, F. Analois, I. Ansoff, K. Bowman, O.S. Vikhanskiy, A.L. Gaponenko, J. Johnson, A T. Zuba, R. Kaplan, B. Karloff, K. Keller, D. Kollis, F Contler, G.B. Kleiner, J.-J. Labmen, Y.N. Lapygin, Y.A. Malenkov, V.D. Markov, M. Meskon, G. Mintsberg, V.N. Parakhin, A.N. Petrov, M. Porter, Y.B. Rubina, N.A. Savelyeva, A. Tompson, J. Trout, L.R. Tuktarov, R.A. Fatkhutdinov, V.l. Shilkov, etc.

The purpose of the research is specification of the motion "competitive strategy of enterprise" and study of methodology of development and realization of enterprise's strategy in highly competitive market environment. In order to achieve the set purpose, the authors have solved the following tasks: 1) approaches of Russian and foreign scientists to the notion "competitive strategy" are studied; 2) opinions of leading scientists and specialists on the process of formation of enterprise's competitive strategy are viewed.

Theoretical foundations of research

Despite thorough theoretical elaboration of the issues of formation and realization of competitive strategy of enterprises, the practical aspects of this problem are not studied. That's why there is a need for scientific research of the issues of methodological provision of development and realization of competitive strategy according to peculiarities of functioning of enterprises in competitive environment. Methodology of research

In the process of the research, the following general scientific methods were used: induction and deduction, analysis and synthesis, classification and grouping, as well as special methods: situational, comparative, and economic & statistical analysis, expert & analytical and strategic analysis.

1. Specification of the notion "competitive strategy of enterprise"

Theorists and practitioners of strategic management offer several approaches to the notion of competitive strategy [Egorova, A.O., Kuznetsov, V.P. 2014].

Founder of strategic management, I. Ansoff, distinguishes two interconnected strategies: portfolio and competitive. Competitive strategy determines various approaches, with the help of which company acts in each strategic sphere.

According to N.I. Gerchikova, competitive strategy is aimed at reduction of production costs, individualization, and increase of product quality, as well as using segmentation for determining new sectors of activities in specific markets.

M. Porter, the Professor of Harvard Business School, states that competitive strategy supposes such positioning of business that will allow increasing its potential to maximum, which will distinguish it from rivals.

N.A. Savelyeva states that competitive strategies should provide achievement of stable competitive advantages for enterprise. Competitive advantages occupy a central role in the process of formation of competitive strategies.

According to V.l. Shilkov, competitive strategy determines approaches, with the help of which enterprise will act in each strategic sphere. The author considers that if company is involved in one type of business, competitive strategy is a part of corporate strategic planning. If organization includes several strategic departments, each of them develops own targeted strategy. …

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