Academic journal article Asian Social Science

Methodology of Competitive Positioning of Types of Economic Activities of the Territory

Academic journal article Asian Social Science

Methodology of Competitive Positioning of Types of Economic Activities of the Territory

Article excerpt

Abstract

The article comprises methodological approach to positioning and assessment of competitive advantages of profile types of economic activity of the territory on the basis of matrix model. Matrix competitive positioning is based on two integral indicators - competitive advantages of factors of production and the attractiveness of the industry market. The authors propose to identify the most important sector for the regional economy based on the analysis of the coefficients of localization and concentration, as well as the structure of the industrial structure and trends of change in the case of the Republic of Tatarstan.

Keywords: region's economic area, regional competition, regional competitive advantages, competitive positioning, economic activities, industrial enterprise's resource potential, economic area "growth points"

(ProQuest: ... denotes formulae omitted.)

1. Introduction

An essential stage of a territory's competitiveness research is comparative competitor analysis by certain aspects which allows to identify the competitive position of a territory and to assess the level of its competitiveness in industry markets. With this in view competitive positioning determines the attractiveness of industry markets (in terms of development dynamics, competitive intensity, the level of concentration and localization, administrative burden etc.) and identifies the main competitors. Its practicality consists in the fact that comparative analysis estimates the importance of various competitive advantages for each industrial market, possibility and ability to operate them and management efficiency in competitive advantages development and their influence on the competitive position of a territory (Safiullin, Elshin, Prygunova, & Galyavov, 2013; Safiullin, Safiullin, Ermolaeva, & Noskova, 2013).

Thus, the necessity of competitive positioning is caused by the following factors:

- Adequate estimation of the efficiency of competitive interaction and the current position in each industrial market;

- Comparative analysis of present competitive position against that of competitors, determination of potential and real competitors;

- Revealing objective-subjective, stable-unstable, short-term-sustainable competitive advantages;

- Determination of strategic and operational problems in competitiveness increase and competitive advantages development;

- The targeted character of administrative influence including development of competitive advantages and possibilities, resistance to external threats.

Specialized books on strategic management may suggest various approaches to the definition of competitive positions. Many concepts universally present a competitive position as a relative category reflecting the level of competitiveness of an entity in industry. In the context of the approach considered in the present research competitive position is suggested to be determined as position of a kind of economic activity of a territory fixed for a certain point of time against that of competitors estimated by a limited set of quantitative and qualitative parameters. Accordingly positioning is the process of identification of competitive position of economic activities of a territory against that of competitors. An active competitive position is formed by implementation of a structural policy during which an efficient control of territorial competitive advantages is brought about. The latter changes the level of competitiveness in industrial market and determines the subsequent competitive actions.

2. Method

One of the most widespread methods of competitive positioning are matrix models.

Nowadays there are various modifications of matrix models: BCG, GE/McKinsey, Arthur DLittle, Shell, Abell-Hammond, Hofer-Shendel models, etc. The criteria of competitive positions in such models are competitiveness - appeal of a market or a branch (GE/McKinsey, Shell, Abell-Hammond models), a relative competitive position - a stage of the market development (Hoffer-Shendel model), relative position in the market - life cycle stages (Arthur DLittle model). …

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