I.Ya.Mendela

Precarpathian National University named after V.Stefanyk

Strategy of Purposeful Increase Due to the Development of New Goods

          More and more new goods appear at the modern developed markets and the time of the so-called innovative cycles or the time of novelty’s working out and its bringing to the market is being shortened. If an enterprise is aimed at strategical stability it should take part in this “innovative race”.

         At the present time most of home enterprises are not ready for active participation in the innovative struggle. Under present-day conditions of the Ukrainian market the industry found itself in the situation when the innovative activity that is aimed at the strengthening of competitiveness of the enterprise is accompanied by large complications. The home economy’s remaining largely behind the industrial well-developed countries is observed according to the tempos of the scientific and technological progress. Total expenses on scientific and technological workings out have decreased in six for the last three years; the number of workers of the scientific and technological sphere of Ukraine has gone down in two. The tendency of decrease in financing of SRRCW (scientific-research and research-constructive workings out) to the level of developing countries exists in Ukraine. It can cause the irreversible processes of disintegration of the scientific and technological complex of the country just in the nearest future. Home scientific and technological potential is often found to be not able to meet the needs of the development of the national economy with its own efforts that makes Ukrainian businessmen buy modern techniques and technologies abroad.

         When an enterprise faces the problem of goods exchange that existed earlier it is foreseen that the enterprise is working out something improved or quite new. The conditions of pursuing such a strategy are as follows: firstly, consumer’s potential readiness to change old into new; secondly, availability of a good subdivision of SRRCW; thirdly, accessibility to the sufficient volume of resources.

        The notion “new goods” has a few meanings that point at the level of novelty. Three varieties of innovative strategy exist. They are: modification, imitation and innovation.

         When the enterprise decides to make any innovation three variants of the situation development that influence the choice of innovative strategy are taken into consideration that can be explained by the curve of the life cycle of the market:

·        Unformed markets;

·        Young markets;

·        Growing markets;

·        Stable (old) markets;

·        Disappearing markets. 

         All the market situations are characterized by the tempo of sale (demand) change and the strength of competitiveness.

         A very small number of enterprises practically create new markets by their new goods. Innovative processes are a feature of a high-developed economic system, as the expenses on the creation of the new may be heavy and the result – not understandable, since there had been no experience in the work with novelty by this moment. But then in case of success the enterprise gains a large competitive advantage.

         Most of enterprises that do not pretend to the role of discoverers choose the way of imitation of good products. When the enterprise-innovator does the hardest work, brings the novelty to the market the increase in sales takes place. Herewith, the increase in sales has different tempos. At first it is small and there are not many imitators at this stage, but at the large tempo of the increase in the market a number of followers is growing larger and larger quickly. The attractiveness of imitation strategy for the enterprise consists in the fact that the risks of failures are decreasing at the market. Such a strategy is convenient also because it doesn’t need a lot of resources (at least, in comparison with the enterprise-innovator) and the decrease in expenses on SRRCW allows the imitator to reduce the production costs and to ensure a competitive advantage for himself at the same time.

         There are goods that are at the level of maturity in assortment of practically any enterprise. It means that the goods have been offered for sale for quite a long time, the experience of their sale is gained, the demand has saturated and even the tendency of its decrease is outlined.  A lot of substitutes and imitators of the goods appear at such markets and there is always a large competitiveness exists. Under such circumstances it is necessary to make a decision about the modification of goods. The improvement of goods quality and the modification of goods have much in common, but the main difference consists in the fact that, in spite of the quality improvement that means the improvement and development of the existing qualities, the question is the first innovative stage – modification, that is the change of characteristics of the goods. The difference between the development and the change of characteristics can be clearly presented when considering these two processes from the consumer’s point of view and the need that is being met.

         What offered way of innovation will be chosen by an enterprise depends not only on the state of demand, but also on the level of development of the division of SRRCW, availability of the qualified staff and organizational structure where creative groups can be formed.