Экономические науки/2. Внешнеэкономическая деятельность

Fourth year student in International Economics Program, Basavro Denis

Alfred Nobel University, Dnipropetrovsk, Ukraine

PhD in Pedagogy, Galyna Miasoid

Alfred Nobel University, Dnipropetrovsk, Ukraine

Prioritization of increasing competitive ability

of enterprise on world market

Structure of international and national market has been changed. Modern market has special peculiarities, and main of them is its involvement in process of globalization. In world economy competiveness means ability to take most profitable position in constantly changing marketing sphere that is forming under influence of factors that does not belong to national economy.

In first place in term of globalization come such factors of growing competitiveness, as labor force, relevant to requirements of the international labor market, innovations, corresponding quality system compliance with international standards on the enterprise, continuous improvement of products sold on the domestic market by domestic producers and the expansion of their activities on the international market.

In a market economy, it is clear that improving the competitiveness of enterprises (same for the national economy as a whole) is a necessary for the country's integration into the global economy.

Competitiveness is based on quality, speed of decision making, technical advantage, service and differentiation of product. Main determinant of competitiveness is to define the national sector, level of enterprise, and how enterprise is going to increase productivity and capacity. Changing conditions of production and organization, just like changing of market situation require new conceptions of productiveness.

There are two kinds of competitive advantage:

1) Lower expenditures – means ability of enterprise to develop, produce and sell similar products, but with lower expenditures than competitors have.

2) Differentiation of goods – means ability of satisfying the customer with higher valuation of product through its quality.

In term of deep structural changes international and national markets main task of enterprise lies in searching of its niche in strict condition of competitiveness on international market. For this, enterprise (acting in global economy) has to count peculiarities of modern market. In global economy first place takes such factors of increasing competitiveness of enterprise as:

· Operating with innovation politics, which define possibility of enterprise to be a competitor not only on local market, but also on international.

· Presence of well-qualified labour resources, corresponding to requirements of international market of labour.

· Flexible system of control over quality on enterprise.

· Constant improvement of quality of goods and services proposed on inner and outer markets.

Enterprise with global strategies also should consider cultural, social, political, technological, ecological and juridical features of market of every country.

Companies with small share on the market have to develop strict strategy and concentrate their forces on one particular competitive niche, even if it has very small part on the market.

Companies that have big market share can realize successful entrepreneur activity, as a result of advantage by combined cost and focus strategy.

Government institutions and enterprises have to complete complex policy, aimed on creation of innovational competitive advantage through:

· Adaptation of finance and credit instruments for innovation stimulation

· Advancement of system of quality standard

· Cooperation of state structure, business and universities in process of elaboration and technology transfer

Realization of competitive advantage can be achieved due to:

· Making ecologically clean technologies and search of ways for decreasing manufacturing cost

· Growth of expenditure for raising the level of employee’s skills, retraining and training staff

· Creation of science intensive production

In my opinion, companies should concentrate on functional innovations (testing new forms of organizational activities, new technologies, complete usage of economic factors, methods of evaluation and control of quality), because system innovation require much more expenditure and much more time. So the best result will be achieved due to optimal combination of general potential and functional innovations.

Steady growth of competitiveness of enterprise can be supplied only by condition of long-term, continuous and progressive improvement of all determinants of competitiveness.

Literature:

1. Porter. M. International competition; 2010

2. Kendrick J. W. Improving company productivity; Handb. with case studies/ Kendrick J. W. in collab. with the Amer. productivity center. – Baltimore; London: Johns Hopkins univ. press, 1984.