Economical science /10. Enterprise economics

Candidate of economical science Gorelova N. S.

Kostanay economical engineering university named after M.Dulatov

Analysis of competitive position 

 

The analysis of enterprise competitive positions in the market assumes to exam its strengths and weaknesses, as well as those factors that impact on the ratio of buyers to the company and, as a result, changes in sales share in a particular product market.

To measure competitive ability of Kostanay branch LLT«Paradiz»    t is necessary to make a comparative analysis of competitive ability factors . Assessment of   LLP «Paradise» company and its competitors opportunities will conduct the following main factors:

- price (large bottle volume 18,9 l.);

- quality of feed water;

- product differentiation;

- maintenance services (water delivery, guarantee and servicing of drinking devises ).

Factors that were mentioned above we will estimate on a ten-ball scale and indicators are  represented in table 1.

Consumer and producer price per large bottle of water   (18,9 l.)
presented in figure 1. The highest price quotation observed in LLP «Kometa»: the consumer price of the one large bottle of «Calipso» water  volume 18.9 liters is 700 tenge, the consumer  price for schools and kindergartens - 550 tenge. LLP «Golden Rill Group offers water «Crystal» 500 tenge per bottle (consumer price) and 450 tenge (producer  price). The price of water «Tassay» of LLP «UNIX» 500 tenge.       

 

 

Figure 1 Price quotation for a large bottle of water, tenge   

 

 

Price quote of  LLP «Odak» is 400 tenge for large water «Umai».

 

 

Table 1

Comparative analysis of competitive ability factor of LLP «Paradz» company and    its major competitors

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LLP  «Khustalnaya» water

LLP «Kometa»

«Calipso» water

LLP«Unix»

  «Tassay» water

LLp «Odak»

«Umai» water

1. Price

8

10

8

7

2. Quality of feed water

6

9

8

6

3. Product differentiation

9

6

7

4

4. Maintenance service

8

7

5

4

 

Competitive ability polygon is the most convenient way comparative evaluation. The method is good that is quite clear and gives the chance to compare the enterprises or goods, services. It represents display   in the drawing provisions of the compared elements for each indicator. Polygon competitive ability is based on characteristics that are represented as vectors pointing in different directions from one point [1]. If come equally to capability assessment of some firms’ competitive opportunities, putting schemes at each other, it is possible to highlight strengths and weaknesses of one enterprise in relation to another.   In the research performance of comparative analysis on basis of  such factors as price, quality of feed water, product differentiation, maintenance service we can build competitive ability polygon of Kostanay branch of LLP «Paradiz» company (figure 2).

As can be seen from figure 2  Kostanay branch of LLP «Paradiz» company. Company has sufficient competitive advantage over competitors in the field of maintenance service. This is due to the fact that the company has a daily working call centre and sanitizes the equipment and the warranty service dispensers and pumps.

Also LLP is a leader in the degree of product differentiation. There are water with various mineral complexes in assortment:

 

 

 

Figure2 Competitive ability polygon 

-                 Drinking table water «crystal» with selenium;

-                 Drinking table water «crystal» with  calcium, magnesium, potassium;

-                 Drinking table water «crystal» iodized;

-                  Drinking table water «crystal» with fluoride ion

There is  «Khystalnaya»water with iodine and fluorine for children in assortment Kostanay branch of LLP   «Paradiz».

 

 When compare the price quote can be notices that the company’s price are at the intermediate level. Consumer price of one large bottle water  «cristal» for 200 tenge , or 29% lower than water   «Calipso», but higher that   «Umai» - 100 tenge, or 20 %.

Government coming in contact with the branch of LLP  «Paradiz» company in Kostanay as well as with other organizations, monitor their activity  on the observance of regulations. Health and safety regulations, the fire worthiness regulation controlled. Cooperating  with government the organization makes tax contributions to the state budget. The main payments on taxes makes income tax, a social expenditure and pension contributions (table 2).

 Table 2

 Tax payments of Paradiz Company LLP branch in the city of Kostanay, tenge

Kind of tax

2010 year

2011 year

2012 year

tenge

%

tenge

%

tege

%

Income duty

17613

23,0

121027

22

194486

24,9

 Social expenditure

15666

20,4

132714

24,2

182553

23,3

Pension contributions

43517

56,6

294676

53,8

405718

51,8

The whole

76796

100

548417

100

782757

100

For analyzed period the payment increased in all kind of taxes, it tells about sales volume, working staff growth, and the growth of the organization in general.  The main volume of allocations constitute pension contributions, they make up more than half of all deductions in all three investigated period [2-3].

 

References:

1. Brass A.A. Management: Science and practice of constructive management: textbook/A.A. Brass. – Mn.:Sovrem.shk., 2006. – 192 P.
 2. Theory of system management: Textbook/edited amended by P.V. Zhuravlev, R.S.Segedova, V.G. Yanchevskogo.-M: Publishing house   «Examination», 2002.- 512 P.
3. Lafta J.. K. Management. The textbook. -M: unincorporated business Grigoryan A.F., 2002.-
264 P.