Bìznes Inform (Sep 2019)
https://www.business-inform.net/export_pdf/business-inform-2019-9_0-pages-308_313.pdf
Abstract
The article is aimed at developing a mechanism for estimating the competitive position of enterprise, which would provide comprehensive objective diagnosis of the industry market factors and the enterprise’s potential. An improved modification of the SPACE analysis method has been developed. When diagnosing the status of enterprise, its financial strength and competitive advantages are considered. In the process of estimating the near environment, the stability and attractiveness of the industry are analyzed. Financial strength, as a complex concept, provides for an estimation of the solvency of enterprise, its financial independence and performance. The competitiveness of enterprise is determined by its competitive market advantages and the efficiency of use of resources. Sets of local indicators for each estimation direction of the enterprise and the external environment are substantiated, including the original, non-widely used ones («performance ratio», «wage competitiveness ratio»). The calculation of integral estimates of the enterprise’s financial strength, its competitiveness, attractiveness and stability of the industry is proposed. A matrix has been developed to interpret the results of analysis and to select a vector of strategic development. This mechanism will ensure an informed decision-making as to the choice of strategy due to: ability to quantify each factor; integrated assessment of the financial strength and competitiveness of enterprise, attractiveness and stability of industry; the recommendations provided in the SPACE analysis matrix. Prospects for further research are to develop methodical approaches to quantifying the individual environmental factors and their impact on the enterprise’s strategy.
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