УДК: 65.012:338.512

DOI: https://doi.org/10.36887/2415-8453-2021-1-3

Anna M. OREL
Doctor of Economics, Professor, Professor of the Department of Organization of Production, Business and Management,
Kharkiv Petro Vasylenko National Technical University of Agriculture
Liu KHAOLIN
Candidate of Educational and Scientific Degree Doctor of Philosophy, Kharkiv Petro Vasylenko National Technical University of Agriculture

JEL classification: M31, I20

Abstract

Introduction. To ensure success in fierce competition, where integration and globalization processes complicate and increase the degree of tension, the company must have the appropriate properties to produce and sell competitive products. A systematic understanding of these multiple properties is embodied in the economic concept of “competitive potential”, effective management of which allows to ensure a high level of performance of the entity. Assessing the level of competitive potential allows not only to create a basis for the selection and implementation of effective competitive strategies in many markets, but also to predict the direction of strategic development of the enterprise.

The purpose of the article is to determine the level of the functional component of the competitive potential of agribusiness entities of different sizes and to develop recommendations for improving its local components.

Results. In order to determine the level of the functional component of competitive potential, its local components were determined, which include personnel, innovation, marketing, production, organizational and managerial and financial. For each of the selected local potentials, a set of quantitative indicators was proposed, which allows to establish their level and the general level of the functional component. As a result of frequency analysis, a generally low level of the functional component was found. To obtain more homogeneous aggregates, the total number of enterprises was divided into 3 groups depending on the size criterion defined at the legislative level. In the group of medium-sized enterprises there are only enterprises with a high and very high level. A significant share of small enterprises is characterized by medium and low levels, and among micro-enterprises is dominated by extremely low levels. The results show an increase in competitive potential depending on the scale of economic activity, which allows us to consider clustering and vertical integration strategies as the most promising for agribusiness entities in order to improve their level of competitive potential.

Keywords: assessment, potential, competitive potential, local potentials, functional component of competitive potential, agribusiness entities.

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The article was received 10.12.2020