ORGANIZATIONAL PRINCIPLES OF FORMATION OF STRATEGIES FOR INCREASING THE COMPETITIVENESS OF AGRICULTURAL ENTERPRISES

Abstract

The article examines the organizational principles of forming strategies to increase the competitiveness of agricultural enterprises. The algorithm for choosing the basic strategy depending on the life cycle of the object in the market is analyzed. The classification of competitive strategies is proposed, the implementation of which involves the differentiation of strategies to ensure competitive relations, strategies for the formation of competitive advantages and strategies for competitive behavior, diversified in the study on the level of innovation maturity and levels of mechanisms. Alternative options for choosing competitive strategies based on a combination of market and production strategies are proposed, the key points of which are: strengthening market positions, maintaining market positions, entering a new market, innovative production development, extensive production development, production reduction. The choice and justification of strategies are proposed to be carried out according to the criteria of strategic alternatives selection, classified by types of basic strategies (survival, stabilization, growth). It is established that in addition to the life cycle stage, the choice of overall strategy is influenced by internal factors that characterize the current business situation based on the calculation of economic indicators, and identify weaknesses that can be minimized or destroyed by timely strategic decisions. It is emphasized that the strategic portfolio of the agricultural enterprise to ensure long-term competitive advantage will include a basic overall corporate strategy, chosen on the basis of competitive behavior strategy and detailing its functional strategies in the organization of production processes, marketing, investment financing, personnel management and others. In a market economy, the strategy of competitiveness is associated with all other major activities of the organization: marketing, financial activities, human resources, and others. In addition, the production strategy is interdependent with many factors of the external environment of the organization. Thus, the level of production significantly affects the competitive position of the firm, and market factors, in turn, affect the content and characteristics of production strategies. Keywords: competitiveness, competitive strategies, strategies to increase competitiveness, agricultural enterprises