SWOT-ANALYSIS OF THE AUTOMOTIVE INDUSTRY IN UKRAINE

Abstract

The paper seeks to explore the issues of the automotive industry development given its strategic importance to Ukrainian machinery manufacturing sector. Currently, Ukraine's automotive industry challenges special attention, since in response to strong negative effects from multiple socioeconomic and global political environment factors, there has been a significant decrease in the number of automobile companies. Car manufacturers who managed to survive in the national automotive industry market suffer from a wide range of various problems of industrial, staff, managerial, innovation, investment, financial, strategic or market nature. It is assumed that functioning of Ukrainian car manufacturing companies in the current dynamic realia claims for building their new development strategies. However, effective strategic planning is associated with proper understanding of the strengths and weaknesses of the domestic automakers and the opportunities and threats for their successful performance. From this perspective, there is a growing need for an integrated assessment of all external and internal environment impact factors to identify the opportunities and prospects of automotive industry in Ukraine. The purpose of this paper is to carry out a SWOT analysis of Ukraine’s automotive industry. To attain the above objectives, the following research methods have been employed: the method of analysis and synthesis – to identify the strengths and weaknesses of the Ukrainian automotive industry as well as the opportunities and threats for their successful functioning; the system approach – to construct the variations of "strengths – opportunities", "weaknesses – opportunities", "strengths – threats", "weaknesses – threats" of the SWOT matrix of the Ukrainian automotive industry. The results of the integrated assessment of the competitiveness of Ukrainian automotive companies revealed their strengths and weaknesses along with identifying opportunities and threats to ensure successful performance of the domestic automotive companies. The specific pathways to implement the "maxi – maxi", "maxi – mini", "mini – maxi" and "mini – mini" strategies at the enterprises of the automotive industry in Ukraine have been developed. The outcomes of the SWOT analysis might lay the basis for building effective strategies to boost the national car manufacturing and ultimately contribute to the overall government strategy for enhancing Ukraine's automotive industry in the frameworks of the harmonization approach.