COMPETITIVE STRATEGIES IN RETAIL INDUSTRY: DEVELOPMENT AND IMPLEMENTATION IN CONDITIONS OF MODEST ECONOMIC GROWTH

Abstract

Urgency of the research. In the conditions of slow economic growth followed by decrease of buyers’ purchasing power the problem of competitive strategies development and their implementation assumes a particular importance. Target setting. Cost leadership as a competitive strategy provides industry leaders with more favorable competitive position in the realities of Ukraine. For a number of companies following the differentiation strategy, it is necessary to identify a set of decisive competitive advantages that would be different from pricing methods and represent value for the consumers. Actual scientific researches and issues analysis. As a development of classic foreign theoretical works on strategic planning of M. Porter, Ph. Kotler, D. Cravens and M. McDonald, the problem of strategies’ development is studied by such Ukrainian scientists as Bay S. I., Karakay Yu. V., Shershnova Z. Ye. Artemenko L. P. and others. The problem of retail market development is studied by such scientist as Mazaraki A. A., Didkivska L. I., Tochylii V. O., P’iatnytska G.T. and others. Uninvestigated parts of general matters defining. Available quantitative and qualitative features of non-price factors that determine customer-buying process do not take into account the specificity of the Ukrainian consumer market. The research objective. To identify priority areas for strategic marketing analysis that would take into account the current state of the industry and market. To explore and define the features of the development of competitive strategies, their disadvantages and advantages in the conditions of high degree of uncertainty and variability of the business environment. The statement of basic materials. In the conditions of modest economic growth low price remains the most important competitive advantage factor in FMCG retail market. Larger market shares and the continuing growth of leading companies by expanding are indicators of the competitive strength of companies following cost leadership strategy. Market re-partition and increasing intensity of competition between existing firms are observed. Conclusions. A proper study of consumer preferences with regard to alternative retail channels and non-price factors of competitive strategies will ensure the improvement of enterprises’ competitiveness in the industry.