The Process of Formation of a Competitive Foreign Economic Strategy of a Metallurgical Enterprise

Abstract

The article is aimed at forming a competitive foreign economic strategy of a metallurgical enterprise on the basis of activities of the PJSC «Interpipe NTRP». In the times of crisis, the use of reasonable strategic approaches to providing competitive advantage in both the domestic and foreign markets gains a special importance. Strategic management allows neutralizing the action of negative influence of the external environment. Both general scientific and special methods of the system-structured analysis and synthesis were used to distinguish external and internal environmental factors affecting the activities of PJSC «Interpipe NTRP»; formation of strategic alternatives together with trend analysis; forecasts of export of ferrous metal scrap, profitability, gross profit of industrial enterprise. According to the results of the review of literature, factors influencing the achievement of the strategic goal are singled out and the number of internal environment indexes is expanded. The authors’ own definition of the category of «competitive economic strategy» category is presented as follows: this is the long-term plan for implementing the foreign economic activity, being one of the development alternatives for ensuring competitive advantages in the future, which are formed taking into account the impacts of external and internal environment. The analytical research on activities of the leading metallurgical enterprise has allowed to determine that the improvement of financial performance indicators is possible only through rigorous control over liabilities and loans. The authors propose to use competitive strategies according to M. Porter due to their validity and convenience. Prospects for further research in this direction are the search and analysis of prospective markets for metallurgical products in the implementation of the competitive strategy of foreign economic activity.

Keywords

• competitive foreign economic strategy
• strategic planning
• strategic management
• internal and external environment
• differentiation
• foreign economic activity