Economical sciences/6. Marketing and management
Oleg Kondratenko
Kremenchug State Polytechnic University
Strategic prospects of the competitiveness development
of industrial products
in the international market
Under
the circumstances of market economy the competitiveness of products comes
forward as the major constituent of industrial policy. Thus internal
characteristics of company have a greater influence on market success, than of
particular branch parameters. To attain the necessary level of competitiveness,
there must be complete correspondence of products with market terms and
requirements of customers. Special attention to the processes of creation of
value chains, basis of forming and management of competitiveness is performed
in researches of such authors as M. Porter, B. Mittal, J.N. Sheth, B. Andersen and M. Oklander
[1].
Industrial
products must own the set of not only technical, aesthetical, ergonomic, other
quality properties, but also should be according to the commercial terms of
selling (price, terms and channels of supplies, service, prestige of company,
advertising). An increase of products competitiveness is the most difficult
task for every industrial manufacturer. The feature of this problem is its cyclicality (fig. 1).
Fig. 1 - Causal relationships
between the factors of falling of sales volume
There is close interconnection between unprofitability and
market share of enterprise: profitability rises as far as growing of the market
share. It means that competitive advantages, stipulating the market success of
a company, simultaneous increase of volumes of sales, in one’s turn increase
the profitability of activity of the company. The special attention during
development of strategies of competitiveness should be attended to build-up of
competitive advantages (it is preferable prevailing). A quality management
should be carried out during preparation and fulfillment of trucks production.
The system of quality must take into account the features of company; provide
minimization of charges on development of products and its introduction. In the
same time, a competitiveness of products is only separate part in the complex
of aims of enterprise besides of its own possibilities and market activity.
The
intensity of competition by quality passes to the level of additional service
maintenance, the principle changes of technology of innovative production and
management, popularity of brand, accurate choice of distribution channels,
non-standard approaches in the design and differentiation of industrial
products [2].
Today
the overseas trucks manufacturers, such as Mercedes, MAN, Scania, and Volvo
have prestige and deserve loyalty of buyers. The trucks have very high quality,
and price by psychological and economic reason is a second-rate factor for
end-users.
The
second important way in the strategy of competitiveness is achievement of
economic advantages above competitors through the decreasing of cost of
production, sales, transportation of products, increase of efficiency of
research and development, and advertising, marketing activity in whole. Select the
followings ways in decline of trucks prime cost according to the level of their
requirements in investment resources:
1. Improvement of production and labor settings:
expansion of specialization and cooperation, operation management progress,
cutback of a transport, workshop and all-factory charges, material-supply
development, growth of the labor productivity.
2. Localization of production that relative independence
from external suppliers of raw material, parts and components, search of
alternative sources of supplies.
3. Differentiation of products, change of its
nomenclature and assortment and the results will be reduction of relative
permanent charges and total quality upgrading.
4. Increase of technical level of production:
introduction of new technologies, front-line experience, mechanization and
automation of production, new types of raw material and spare parts, change of
design and technical characteristics of trucks.
During basing and
selling of variants of investment-innovative development of products of HC
„AvtoKrAZ”, the leading Ukrainian manufacturer and supplier of heavy-duty
trucks and special-purpose vehicles, it follows to spare the special attention
to the improvement of those characteristics of KrAZ trucks which yield to the competitors. This is possible to develop the modern
models which would save the traditional advantages (payload capacity, engine
power etc.) and possess of advantages of competitors analogues. There is
required to concentrate attention on own market positions among other brands which
are in the same product category, and on the overseas markets of those
countries where KrAZ trucks are needed mostly. These are mainly the developing
countries of the CIS, Africa and Asia.
The research of effective strategy can differ from a typical industry
values. As a rule, enterprises examine own industry through the prism of the
generally accepted groups (for example, heavy-duty trucks, economic models),
identical spectrum of the products and services offered by industry. That company
will be able to overcome generally accepted approaches, so it is needed to
examine all possible alternatives [3].
Probably
this is a subject of the actions for new strategic logic – innovation of
values. Instead of concentration of all efforts on a struggle against
competitors, enterprise should make a bounce in a value for the customers
opening the new market segment overcoming competitors one. The innovation of
value is attained only when a company combines an innovation with such aspects
as practicality, total price and charges control. Similar approaches need
creative thoughts, enable economy growing and considerable increase of income
(it’s called “blue ocean strategy”).
HC
„AvtoKrAZ”, which is characterized by high level of co-operation of production
and risk of investments, should displace strategic reference point from
existent competitors on alternative variants and creative potential, adaptive
flexibility to the changes of external business environment. As a result the
company will avoid a competition creating extra demand on new innovative
products among the customers.
References:
1. Mittal B., Sheth J.N. Value space: Winning the
Battle for Market Leadership. – McGraw-Hill Companies, 2001.
2. Ìèøèí Â.Ì.
Óïðàâëåíèå êà÷åñòâîì. – Ì.: Þíèòè-Äàíà, 2000. – 303 ñ.
3. Øèíêàðåíêî È.
Îò àëîãî îêåàíà ê ãîëóáîìó // Ýêñïåðò. – 2006. – ¹12. – Ñ.22.