Enhancing the role of dynamic capabilities of the coal companies under the conditions of sharp price fluctuations at the international markets

Abstract

In recent years, international coal markets have been facing a trend of a growing number of sharp price fluctuations during a year. This can be regarded as the evidence for the increasing intensity of market competition as well as for the growing number and significance of the external environment factors affecting the world coal market. Actually, the coal market players have to operate in the conditions of unstable prices and external limitations that in their turn require searching for new sales markets, changing logistics routes, product lines, production and technological processes, etc. It results in the increasing significance of dynamic capabilities of coal companies – organizational capabilities on changing the portfolio of resource and capabilities in response to the changing competition at the market. In the conditions of growing volatility of coal markets the adaptation capabilities of a company become a basis for its economic effectiveness and competitiveness as well as for the viability as a whole as it allows to accelerate the process of making decisions about the necessary transformations and evaluate the risks, and are crucial for the implementation of new projects. Any activities on the evaluation and development of dynamic capabilities are possible only inside a company. This task should be solved at the strategic level of decision-making alongside with identifying the company’s individual priorities for development of organizational capabilities lying in the basis of dynamic capabilities of a company.The article deal with the author’s definition of the basic categories of dynamic capabilities implemented for the coal industry. The definition presents the priorities for operation in the current conditions and the capability to transform and accept new business-models, develop analytical capabilities and skills of acquisition and alliances with other companies.