Formation of the enterprise strategy based on the industry life cycle
Keywords:
Enterprise Strategy, the Concept of the Life Cycle of the Industry, the Agricultural Industry of UkraineAbstract
The article considered the process of forming an enterprise strategy in the following stages: analysis of the external and internal environment of an enterprise, formation of a system of enterprise goals, assessment of alternative development strategies and the choice of one of them, implementation of the chosen strategy, and adjustment of the strategy. It is proposed to analyze the external environment in accordance with the concept of the industry life cycle. The concept of the life cycle of the industry, in particular the main stages of development of the industry and the criteria that are the basis for their identification, has been investigated. It is proposed to use the scientific developments of Porter and use the following characteristics as criteria: behavior of buyers of products (services), changes in goods, the nature of competitive relations in the market, profits of enterprises in the industry and marketing activities. Accordingly, it is proposed to highlight the stages of the industry development: implementation, growth, maturity, decline. Alternative strategies of enterprise development at various stages of the industry life cycle are considered: the strategy for realizing the advantages of the pioneer, the strategy of change response, the strategy of change management, the strategy of stabilization, the strategy of reduction, the strategy for finding segments of steady demand, as well as the strategy of the "last time". The main characteristics of these strategies are studied. The analysis of the life cycle of the agricultural industry in Ukraine has been carried out and it has been established that according to most of the characteristics it is at the stage of maturity. The industry has established relationships between producers and business consumers, enterprises receive average profits and specialize in the production of certain types of agricultural products of sufficiently high quality, and there are processes of gradual ousting of competitors from the market. It is proposed to agricultural enterprises as a possible strategy to implement a stabilization strategy that best suits the conditions of the external environment.
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Copyright (c) 2021 Ph.D. Yuliia Karpenko, Dr. Inna Kuznetsova, Dr. Alla Chykurkova, Ph.D. Kateryna Vitaliyivna Nakonechna, Ph.D. Oleksandr Hridin, Ph.D. Maryana Matveyeva
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