BUILDING COMPETITIVE STRATEGIES: METHODOLOGICAL ASPECTS

Abstract

The article provides insights into the problem of selecting an effective company competitive strategy in modern market realia. It is proved that company development policy must rely on the implementation of science-based management decisions in every functional area of business which take into consideration a range of impact factors of both external and internal environment. The study findings reveal that by using its opportunities efficiently and preventing threats, an enterprise can reduce its financial costs to implement relevant marketing strategies. Particular emphasis is placed on the need to keep track of competitors’ behaviour and mindful selection and implementation of sound competitive strategies aimed at achieving greater economic benefits and boosting the number of loyal customers. The research objective is to provide theoretical substantiation and enhance the methodological support for choosing a competitive strategy with due regard to company opportunities and capacity along with its market security. The proposed methodological approach to building a competitive strategy assumes identification of company position in the matrix, the positioning criteria for which are its market security and the selected priority component of the company competitive advantage. The choice of priority component should be based on the analysis of competitive advantages by each of their structural elements. Using the matrix for selecting competitive strategies involves the analysis of alternatives to the company long-term marketing strategy within each quadrant and allows for bottleneck detection in business operations.