Gviniashvili T. Z., Chaus N. Yu.
Oles Gonchar Dnipropetrovsk National University (Ukraine)
THE INFLUENCE OF POSSIBLE
COMPETITIVE ADVANTAGES IN PROFIT
Nowadays it is no secret that profit depends on the competitive advantage of a company. One reason is the high competition and in fact a very small part of companies monopolies that would keep most of the market in the same hands.
Competition and regulation of its competent at this stage is very important for Ukraine, because the more competition, the lower price of goods or services. Profits of companies fall, because a quality product can not be cheap (in most cases), and switching to cheaper raw materials and thus the production of goods with lower costs could lead to loss of confidence in the brand.
The study of the impact of competitive advantage and their comparison with a profit was investigated by such foreign and domestic scholars as M. Porter [2], I. Ansoff [1], S. G. Svetunkov [3], R. Mynyter, A. A. Litvinov and many others. However, changing conditions of life in times of crisis led to the relevance of the topic.
According to the traditional concept of the theory of the enterprise and the theory of markets, profit maximization is the main purpose of the enterprise. Therefore, the company should choose a policy to increase production and thereby achieve maximum profit in each period sales [3, р.127].
One way to achieve an increase in profits is a competitive advantage. We offer to share them on the benefits and advantages of actually good. The main benefit is a recognition, i.e a brand trusted by consumers, so that can attract new customers by competent marketing policy. Quality is the main thing. However, in times of crisis it is as important as the price.
We offer the following advantages over conventional classification of competitors, economic, organizational, technical, technological, resource and quality. The most difficult is to improve quality – a benefit in all contracts, plans, projects, research skills of employees. These competitive advantages are achieved through systematic organization, competent leadership, staff motivation and intellectual efforts of all parts of the production of goods or services. But they recovered well, as are special and difficult copied.
Also, it is important to reflect competitive advantages in product, price, quality, low cost and losses. That is, they should be evaluated economic indicators: high market share, sales, high profitability and any benefits should be implemented in the new enterprise performance should lead to new, more better the company.
The composition of advantages in the modern Ukraine is primarily geographical location (this is due to military operations and the high cost of fuel), brand recognition (people tend to trust a proven brand), various innovations (commodity and technology) and low cost [2, р.148].
Here is an example of modern competitive advantages of foreign companies. Innovations in most explicit example of IT-companies, as the lead in the industry and profit are those who are setting the pace of innovation and technology. The company Apple – the most striking example of a company that has achieved leadership in the IT market through the use of innovation as a sustainable competitive advantage. As for the popularity of the brand is a worldwide recognition, fame and respect for the brand allowed Coca-Cola Company to maintain its market share and dominate the market for many years. High quality product and quality service has always been strong competitive advantage goods. The company IKEA has gained a firm foothold in the market because unable to provide the highest quality product at a low price. The strategy of low prices and its ability to maintain, strengthen and develop the retail chain ATB has provided leadership and high level of capitalization in Ukraine.
Also we would like to offer a differentiated marketing strategy which is used in modern Ukraine. This strategy concentrates on the company that produces various kinds of other goods that are different from competitors' products and have something unique in terms of consumers. An example may be unique packaging (outer originality), special materials, it is possible to work on. This allows different groups to meet the demand of customers and thus gain more market segment.
For some companies, of course, not possible for one reason or another application of differentiated marketing, in this case, we offer a concentrated marketing strategy. It implies that the company is focusing on one or more of the few market segments and offers products per the needs of these groups of customers. Leadership in a particular segment achieved through lower costs and prices of goods or uniqueness, or both together. This strategy is suitable companies that won the love of customers through one or more products and recognizable brand [1, р.192].
Thus, even in difficult times for the national economy and national production may find ways to increase competitive advantage and preserve market share, as well as her increase. To fulfill this mission should conduct a competent strategic policies in force well trained technicians.
The list of references:
1. Ansoff I. Strategic Management: St. from English / I. Ansoff. – M. : Economics, 1989. – 420 p.
2. Porter M. Competitive Strategy: Methodology industries and competitors / M. Porter; tr. from English. – 3rd ed. – M. : Alpina Business Books, 2007. – 453 p.
3. Svetunkov C. R. Competition and business solutions / C. R. Svetunkov, A. A. Litvinov. – Ulyanovsk Publisher «Corporation Technology advancement», 2000. – 256 p.