Abstract
In whatever industry the company operates, it will always be affected by competition. This influence is a very good motivator for improving business processes and introducing innovative technologies at the enterprise. System integration market is one of important elements of Ukrainian information technology industry, ensuring the implementation of modern IT solutions to increase efficiency of enterprises and meet needs of Ukrainian citizens. Since the level of competition in the industry has a direct relationship with the rate of profit and investment potential of the industry, the analysis of competitive environment of the industry plays a leading role in the development of company’s strategy in the market. The article examines the competitive environment of the system integration market of Ukraine. A detailed analysis of factors of competition in the industry has been made in the article according to the methodology of M. Porter’s five forces of competition. The analysis includes detailed description of bargaining power of suppliers and buyers, threat of new entrants and substitutes as well as rivalry among existing competitors specified for the system integration market of Ukraine. Local market and industry trends as well as market players behavior has been taken into account. As a result, the model of competition in the system integration market of Ukraine has been formed. According to the results of research, the model of competition in the system integration market of Ukraine is characterized by significant bargaining power of buyers and suppliers, a medium level threat of new entrants, a low level threat of substitute products and services, and a high level rivalry among existing competitors in the market. Based on results of the analysis of competitive forces in the industry, companies have the opportunity to shape their market strategy, taking into account the position of the company in relation to the sources of each competitive force. Results of the study can be used to analyze the state and development trends of the system integration market of Ukraine and to develop strategies of market players.
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