Abstract

The article is devoted to revealing the theoretical essence of the category of “competition”. The authors stress on the importance of studying the problem of competitiveness management because it is a necessary condition to achieve farms’ profitability in the future. Competitiveness is a prerequisite for future farm profitability. Competitiveness management is focused on strategic changes in farming environment. The dynamic external environment of farms’ operation requires their fast response to make operative decisions, continuous development and correction of tactic and strategic plans. It is noted that increase of the level of competitiveness is an element of general management of farms. Moreover, management of farms’ competitiveness should be not just a key goal of farmers, but the task of regional and national development. The process should result in maintenance of high living standards of rural residents, creation of favorable conditions for comfortable living on rural area, moderation and decrease of disproportion in the levels of social-economic development of rural territories. The research outlines the integrated complex of the external and internal factors’ impact on the level of farms’ competitiveness. In terms of management, impact of each factor sets tasks for managers. It is substantiated that competitiveness depends on the degree of farms’ innovative development. The authors identify main structural elements of the systems of farms’ competitiveness management. Specificity of the farms’ competitiveness management is determined by the character and volume of production; specialization and opportunity of production diversification. Inconformity of actual and expected levels of farms’ competitiveness forces the need of a managerial decision or managerial impact to bring the actual conditions to the expected ones. It is determined that a key task of the farms’ competitiveness management is to maintain permanent long-lasting rise of competitive advantages in the changeable conditions of external environment. The result of this process should be ensuring high living standards of rural residents, creating favorable conditions for comfortable living in rural areas, reducing disparities in the levels of socio-economic development of rural areas.

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