Akademičnij Oglâd (Jul 2024)
COMPETITIVE BUSINESS STRATEGIES OF EU ENTERPRISES IN THE CONDITIONS OF ECONOMIC INSTABILITY
Abstract
In the context of global economic instability, which was intensified by the COVID-19 pandemic and the full-scale russian invasion of Ukraine, companies are paying more attention to internal factors, that can ensure long-term economic development and competitiveness. One of the most important business capabilities that determine a firm’s ability to develop effectively, is the competitive business strategy. Therefore, the priority task is to develop a strategy that aligns with the goals, available resources, and external environmental conditions. The study of the choice and implementation of competitive business strategies by EU enterprises was carried out on the basis of Community Innovation Survey results. The authors analyzed the significance of competitive business strategies for EU enterprises, taking into account their innovation status (innovative-active or non-innovative-active) and the size of the enterprises (large, medium, and small). It was found that innovative-active enterprises actively implement business strategies in their activities. The study showed that the most required strategies by innovative active enterprises, regardless of their size, are those focused on high quality, satisfying established customer groups, improving existing goods or services, reaching out to new customer groups. It can be assumed that such business strategies allow the enterprises to best strengthen and effectively use competitive advantage. In turn, the low price strategy is in little demand, and the share of enterprises that choose it, is constantly decreasing. For non-innovative-active enterprises, the demand for business strategies depends on the size. Large and medium-sized non-innovative-active enterprises mainly choose strategies of high quality and customer orientation. While for small non-innovative-active enterprises, the importance of all business strategies is lower. In particular, high quality and customer orientation strategies are moderately required. Relatively smaller non-innovative-active enterprises choose the low-price strategy, compared to other groups of enterprises. A study of the changes that have occurred in recent years showed an increase in the share of innovative-active enterprises for which customer-oriented business strategies were highly significant. Additionally, the share of enterprises for which the high-quality strategy is of high importance has also increased. Conversely, the share of enterprises for which the low-price strategy is highly important has decreased. Determining the features of the choice of competitive business strategies by enterprises in EU countries, depending on their innovative status and size, creates a basis for further adaptation of their experience to the conditions of entrepreneurial activity in Ukraine. This adaptation can be implemented by domestic enterprises in their activities both at the current stage and during the period of post-war recovery.
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