Effective Competitive Strategy Research Articles

A comparative analysis of social media engagement of brand local fashion in Indonesia

The fashion industry significantly contributes to Indonesia's creative economy, accounting for 17% of the GDP in 2020. With the advent of digital technology and the resurgence of local brands, the sector has seen substantial growth, especially in e-commerce where fashion remains the top-selling category. The increased competition among local brands necessitates effective competitive strategies, particularly through social media, which has seen a dramatic rise in users, reaching 191.4 million in 2023. This research focuses on analyzing the Instagram accounts of the top 5 local fashion brands in Indonesia, as identified by the Fluenshion survey. Using qualitative case study methods and secondary data from Analisa.io, the study evaluates the social media strategies of these brands over a one-year period (2022-2023). The findings reveal varying levels of engagement and strategy effectiveness among the brands, with recommendations emphasizing the importance of content type, posting frequency, and interactive social media use to enhance brand engagement.

Assessing Competitive Strategies in UK Manufacturing SMEs

In this comprehensive study, we delve into an exhaustive examination of effective competitive strategies tailored for small to medium-sized enterprises (SMEs). The principal objective of this research centers on scrutinizing the strategic orientation of UK Manufacturing SMEs. Conducting an extensive literature review, we critically evaluated Porter's framework and identified several gaps in its applicability. Notably, critiques assert that the model inadequately captures the intricate nature of strategic behavior within real organizations and fails to provide a fully accurate representation of strategy-performance relationships. Empirical research further highlights the model's limitations, indicating its inability to facilitate the desirable combination of competitive strategies by firms. To address the outlined objectives, we employed a semi-structured questionnaire in our investigation. The ensuing analysis involved the application of factor and cluster analysis to identify strategic variables currently employed by SMEs in the manufacturing domain. Our data analysis revealed a divergence from the adoption of Porter's single generic strategies. Instead, the findings supported the utilization of mixed strategies that integrate elements from both differentiation and low-cost strategies. Significantly, these hybrid approaches were found to be associated with enhanced firm performance. This study contributes valuable insights into the nuanced landscape of competitive strategies within the UK SMEs, shedding light on the dynamic interplay between strategic choices and firm performance.

Innovative models of enterprise activities in global value chains

Methods. The research is based on the use of such general scientific methods as: logical and historical – to study the historical conditions of the development of the world economy, which influenced the change of scientific ideas about the nature of the innovation process; general and specific – to establish the specifics of theoretical innovation models; analysis and synthesis – to highlight the advantages and disadvantages of open innovations. Results. The evolution of scientists’ views on the nature of innovation processes is traced in the article. Five dominant theoretical models of innovation are characterized, namely: «technological push», «market involvement», «combination of technological capabilities and market needs», «integrated innovation process», «chain» and «open innovation». The relationship between changes in the economic system of society and the development of scientific ideas about the nature of innovation processes has been established. Specific features of the open innovation model are singled out and directions of its application in the organization of innovative activities of enterprises joining global value chains are demonstrated. The advantages and disadvantages of the model of open innovation in global value chains are demonstrated. Novelty. The scientific novelty of the research results lies in the determination of the possibilities of using various types of open innovations existing at the current stage in global value creation chains, for which their ranking was carried out based on the combination of the value of the level of innovation inclusion in the global value creation chain and the purpose of the enterprise’s activity. Practical value. The results of the study reveal the variability of theoretical ideas about the innovation process depending on the transformations of economic systems, and therefore allow enterprises to choose more effective competitive strategies for their development.

The role of competitive potential in security development of auto transport enterprises

Methods. The main methods used in the work are analysis and synthesis. With their help, the role and value of competitive potential in the management system were determined (general theoretical principles, determinants of competitive potential formation and its role in ensuring the development of the motor vehicle enterprise). The methods of generalization and system analysis made it possible to determine the system of principles on which the competitive potential in the enterprise management system should be based. Results. Based on the study of approaches to determining the essential content of the concept of «competitive potential», the article examines the views of domestic scientists on the factors of formation and increase of competitive potential in the context of enterprise management. It was determined that it is aimed at solving the problems of the functioning and development of the enterprise by ensuring the growth of its competitive advantages. It is shown that the formation of the company’s potential should take into account the specific characteristics of the industry and the chosen development model. The principles of formation and requirements for individual components of the competitive potential of the motor vehicle enterprise are proposed. Novelty. It has been proven that the competitive potential of a motor transport enterprise will contribute to the formation of its positive image among counterparties (partners, consumers, potential employees, etc.), as one that actively develops and implements creative ideas and is open to the perception of new things. The importance of implementing competitive potential monitoring at enterprises has been demonstrated, which will provide the management with information about the state and possible ways of the most effective use of potential over time, and will also make it possible to determine both the ways and the possibilities of implementing an effective competitive strategy. This will create prerequisites for the company to achieve a high level of development of competitive potential. Practical value. The results of the study make it possible to determine the role of competitive potential in ensuring the economic development of the motor vehicle enterprise, as well as to single out the main tasks and principles of the formation of competitive potential.

Competitive Strategies and Approaches Among Electronics Companies

With the development and progress of time, the purchasing power of individuals for electronic products is increasing, leading to intensified competition among electronic product companies. This paper analyses the competition between two graphics card developers and producers in the context of increasing consumer purchasing power. It considers the effects of their competition on the market through the examination of their respective strategies and reactions. The study aims to provide valuable insights into competition methodologies for electronic product companies in the future. Electronics firms can improve their competitiveness by implementing effective competitive strategies. It is important to understand how and when to employ these methods to achieve the desired results. In order to do so, firms should adopt a clear and logical approach that incorporates causal connections between different strategies. It is also crucial to use precise, objective language, avoiding biased or ornamental language. In addition, adhering to conventional structures, formats, and grammatical correctness is key, as well as maintaining a formal register. By following these principles, firms can attain a significant advantage over their competitors.

Проблеми вибору та реалізації стратегії конкурентоспроможності у контексті забезпечення розвитку ТОВ «УА.КОНСАЛТИНГ» на європейських ринках

The article examines and studies the essence of competitiveness and the choice of an effective com-petitive strategy in various literary sources, scientific studies, and current regulations. According to the literature, all authors emphasize that for an enterprise to operate effectively in a competitive industry, it is necessary to have its own competitiveness strategy, which is formed as an action plan for obtaining a sus-tainable competitive position. Moreover, there are many types of competitive strategies, from which an enterprise can choose the most optimal one according to its capabilities and resources. In today's highly competitive global business environment, achieving and maintaining competitive-ness is a top priority for businesses seeking to enter new markets. This article provides an overview of the specifics of selecting and implementing effective competitive strategies in the context of ensuring the de-velopment of an enterprise in European markets. The authors also analyze the company's activities in various areas. First, was analyzed the general management system of the enterprise, its organizational structure, and characterized each management function used at the enterprise. Based on analysis of the company's activities, the problems of choosing and implementing competitiveness strategies were investigated, and the two most important ones that need to be addressed were identified. Using a full analysis, the article not only identifies these challenges, but also proposes strategic ideas and plans to overcome them. It delves into the development of systematic approaches to solving existing problems related to the choice and implementation of the strategy. Strategies may include market segmen-tation, product adaptation, market entry, etc., each of which is tailored to the unique characteristics of European markets. In addition, the authors discuss in detail the methods and techniques for the effective implementation of the selected strategies. They explore issues such as resource sharing and strategic coordination, which are crucial for the successful implementation of competitiveness strategies. It is vital to ensure that the chosen strategies are aligned with the company's core competencies and long-term goals, which will allow the company to create a sustainable competitive advantage in European markets.

Strategi Wisata Edukasi Kampung Lele Dalam Persaingan Industri Wisata Halal Kediri (Tinjauan Porter Five Force dan Pondasi Rancang Bangun Ekonomi Islam)

Competition in the halal tourism industry in Indonesia is currently busy. The needs of the Muslim community in the halal industry, recreational areas include aspects that must be considered. In addition to meeting the needs of the Muslim community, halal tourism also encourages economic growth. An effective competitive strategy will create the advantages of a tourist spot with its competitors. This study aims to examine the competitive strategies carried out by a tour in Kediri Regency which is developing quite well including during the pandemic. Tourism in Kediri has several strategies in competing with fellow tourism industries. So it is very relevant when reviewed in the Porter Five Force Approach which is a method of strength in competition among industries. In addition, as a form of competition in the halal industry, the basic values of Islamic economics become the foundation of Islamic economic design to become the basis for the economic and business activities of Muslim communities. The results of this study explain that the competitive strategy of Wisata Edukasi Kampung Lele Kediri through the Porter Five Force approach has realized five aspects of strength which include strategies to face new competitors, strategies to face substitute products, bargaining power strategies for buyers, bargaining power strategies for suppliers, and facing similar industry competition. Based on the design foundation, the basic values of Islamic economics such as tawhid, adl', nubuwwah, khilafah, and ma'ad have been well realized by Wisata Edukasi Kampung Lele Kediri.

Development of competitive strategies by enterprises in the globalization of market

The subject of the study is the process of formation and implementation of competitive strategies of enterprises in the conditions of globalization of markets. The purpose of the article is to study the relationship between the globalization of markets and the development of competitive strategies of enterprises, as well as to provide recommendations to enterprises on the development of effective competitive strategies that take into account global trends and the peculiarities of local markets. The methodological basis of the article can be various research approaches and methods, depending on the specific orientation. The methods of economic analysis are used, in particular, comparative analysis of various competitive strategies, SWOT analysis, Porter's analysis, and others. Also used are methods of sociological research, in particular surveys of various groups of stakeholders, or methods of practical experience, including case studies of successful enterprises and their strategies. Results of the article. It has been established that in the conditions of globalization of markets, enterprises must develop competitive strategies that take into account the trends of global market development and the peculiarities of competition in different regions of the world. The main factors influencing the development of competitive strategies of enterprises in the conditions of globalization of markets are identified, in particular: changes in the political, economic, socio-cultural and technological environment, the growth of competition, changes in consumer requirements, the strengthening of the influence of regulatory bodies, etc. The main strategies that can be applied by enterprises in the conditions of globalization of markets, such as: differentiation strategies, cost reduction strategies, focusing strategies and combined strategies, are studied. It was found that the success of the company's competitive strategy in the conditions of globalization of markets depends on several factors, in particular: choosing the right strategy, effective management of resources, adaptation to local conditions and interaction with partners. Recommendations are given on the development and implementation of competitive strategies of enterprises in the conditions of globalization of markets, in particular: analyze trends in the development of the global market. An additional result is the identification of key factors that influence the formation and implementation of competitive strategies of enterprises in the conditions of globalization of markets. This enables enterprises to more effectively adapt to changing market conditions and develop their strategies based on the analysis of these factors. Field of application of results. The recommendations for the development of competitive strategies that have been formulated can be used by enterprises of various sizes and industries that wish to compete in international markets. In particular, the research can be useful for managers who are responsible for the development of company strategies, as well as for researchers and teachers who deal with problems of competitiveness of enterprises. Conclusions. The development of competitive strategies of enterprises in the conditions of globalization of markets is an important factor in their success and preservation of competitiveness. Effective selection and implementation of strategies requires a deep analysis of external and internal environmental factors, a thorough study of the competitive field, and the use of modern strategic management tools.

A PLS-SEM APPROACH TO ENTERPRISE RISK MANAGEMENT AND PERFORMANCE OF SMEs IN GHANA

The purpose of this study is three-fold. First, examine the effect of ERM on the operational and financial performances; second, the effect of competitive advantage on operational and financial performances; and third, explore the mediating roles of competitive advantage and financial literacy on the relationship between ERM and the operational and financial performances of SMEs in Ghana. Sampling 8,384 SMEs purposively, the analytical framework was based on SMART PLS-SEM. The empirical results reveal that ERM just as competitive advantage are positive determinants of financial and operational performances of SMEs. Financial literacy does not mediate the relationship between ERM and financial performance, although it partially mediates the relationship between ERM and operational performance just as competitive advantage partially mediates ERM and financial performance. Competitive advantage mediates between ERM and operational performance of SMEs in Ghana. Therefore, effective ERM practices and competitive advantage strategies are necessary conditions for the long-run sustainability of Ghanaian SMEs by way of improved financial and operational performances, given that the key officers are financial literate.

Формування конкурентоспроможної стратегії підприємства у воєнний час

The article discusses the key aspects of competitiveness of enterprises in the context of the military conflict with Russia, which has left a significant mark on the economic landscape of Ukraine. The results of the analysis indicate serious destruction of the country’s economy, especially given the impact of the war on various sectors of the economic management. Measuring the competitiveness of enterprises can be represented by three main indicators: market efficiency, innovation potential, and intangible assets. The consequences of the war, which is still going on, have determined the risks and challenges that have become decisive factors for business. The destruction of economic infrastructure, supply chain disruptions, and geopolitical changes have become key factors driving the need for strategic transformations to ensure survival and overcome the wartime challenges. The article emphasizes the need for active adaptation of enterprises during the wartime: rapid response to changes in the business environment, search for alternative markets and suppliers, investments in new technologies. These strategies become crucial for maintaining and increasing competitiveness during the wartime. Opportunities to expand markets, change suppliers and resources can reduce the vulnerability of economic entities. In times of uncertainty, it is important to invest in innovative technologies and approaches. This not only helps to stay competitive, but also creates new opportunities for growth in a challenging environment. An important element of long-term success is the development and implementation of strategic risk management plans. This involves identifying and minimizing potential threats, as well as being prepared to respond effectively to unforeseen circumstances. The conditions of war require businesses to actively cooperate and join forces. On the basis of the carried out analysis, the key stages of formation of an effective competitive strategy of enterprise have been proposed. These steps will not only contribute to the survival of companies during the wartime, but will also open up new opportunities for sustainable development and increased competitiveness in the long run.

THE MAIN PRINCIPLES AND STAGES OF THE COMPETITIVE STRATEGY FORMATION OF AN INDUSTRIAL ENTERPRISE

The article examines the theoretical and practical tasks of the competitive strategy formation of an industrial enterprise. The task of the competitive strategy of an industrial enterprise is highlighted. In accordance with the defined tasks, the requirements that need to be taken into account in the formation of a competitive strategy are described. Different approaches to the process of competitive strategy formation are analyzed. The study of specialized literature made it possible to single out the following basic principles of competitive strategy formation. In order to increase the effectiveness of the competitive strategy implementation, the formation process should be closely related to its implementation, during which the identified deviations become the objects of adjustments. It should be noted that the process of the competitive strategy formation of an industrial enterprise should be characterized by complexity and completeness. In the work, the sequence of the process approach stages to the competitive strategy formation of an industrial enterprise is highlighted. The basis of the process approach to competitive strategy formation is the general strategy of the enterprise, which is a comprehensive plan of the industrial enterprise’s activity, which ensures the realization of its mission and goals and is mainly focused on increasing long-term efficiency. Actually, the concept is a complex of certain provisions that are connected by the main idea and aimed at achieving a specific goal. Despite the peculiarities of the competitive strategy formation process of an industrial enterprise, most approaches are united by a common goal - creating greater value for consumers and other interested parties compared to competitors. The formation of an effective competitive strategy is a complex and multifaceted process, a necessary prerequisite for achieving the sustainable functioning of the enterprise, and it has an undeniable practical value. Implementation of a competitive strategy taking into account the market situation, timely analysis, response to deviations from target guidelines and reaction to external and internal changes will allow the enterprise to form and strengthen its competitive advantages and market position.

Optimal competitive capacity strategies: Evidence from the container shipping market

For nearly two decades, ocean carriers have been locked in an arms race for capacity, which has led to huge losses for many and even bankruptcy for some. We investigate the nature of this investment race by studying a long-term capacity investment problem in a duopoly under demand uncertainty. In our model, two firms make sequential capacity decisions, responding to each other’s current and future capacity. We consider two types of strategies which differ in terms of how a firm considers the opponent’s future capacity in its own strategy: a proactive strategy where the firm assumes that the opponent will respond using a certain strategy, or a reactive strategy where the firm assumes that the opponent’s future capacity remains unchanged. In the proactive case, we allow the firm to have different assumptions on the opponent’s strategy, representing different amounts of information the firm has on the opponent. For each type of strategies, we derive the firm’s optimal decisions on both the timing and size of capacity adjustments, specified by an array of intervals for the optimal capacity in a given capacity space in each period. Using detailed data from the container shipping market (2000–2015), we illustrate how to plan competitive capacity investments, following our model. By comparing the optimal decisions specified by our model with the reality, we show that the realized capacity decisions of the leading carriers, which were often questioned as irrational, are close to optimal, assuming these carriers follow proactive strategies. By revealing the underlying structures of different strategies, that is, the stayput intervals, we show how a specific strategy brings value to firms under competition. Based on our results, we provide practical guidelines to carriers and firms which operate in a similar competitive market for implementing an effective competitive capacity strategy.

The Determinants of the Attractiveness of an Industry: An Extension of The Porter’s Five-Forces Framework

In this paper, I review and provide a more extensive theoretical grounding for Porter’s five-forces model for the determination of the attractiveness of an industry. I argue that the model is incomplete given its implicit assumptions about a firm’s financing activities in implementing its competitive strategy. I would suggest that an absolute paradigm for the determination of the attractiveness of an industry must take into consideration the industry’s optimal capital structure as well as the tendency for the power of providers of debt capital to vary across industries and to be crucial in the formation of industry profitability. Therefore, I propose an extended model for the determination of the potential profit of an industry, incorporating the industry’s optimal capital structure and the power of lenders. The pivotal connotation of this extended model is that the efforts of firm managers in formulating effective competitive strategies or in establishing a strategic position must not only consider ways of dealing with the bargaining power of buyers, the threat of entry, the negotiating power of suppliers, industry rivalry, and the threat of substitutes but must also account for the profit-contributory roles of both the optimal structure of the capital with which those strategies must be implemented and the power of lenders in setting constraints on the utilization of the firm’s capital, culminating in the proposition of a seven-structure paradigm for the determination of the attractiveness of an industry.

Formation of the competitive strategy of the enterprise in conditions of the knowledge economy: theoretical approach

It is noted that in modern economic conditions, the success of any enterprise largely depends on its competitive position. Sustainable competitiveness allows enterprises not only to win in the market struggle, but also to take timely measures to respond to changes in the external environment. An effective competitive strategy allows you to get a unique product, the price, quality and properties of which will meet the needs of consumers. The purpose of the paper is to substantiate the theoretical provisions regarding the formation of the competitive strategy of the enterprise. The methodological basis of the research is the scientific works of the classics of economic science, the works and publications of leading scientists and specialists who investigate the issue of forming a competitive strategy of the enterprise. In the research process, such methods as analysis, synthesis, comparison, descriptive-analytical, system-structural were used. It is emphasized that the achievement of strategic commercial goals and the ability to function effectively for a long time are the basis of competitiveness, which for the enterprise, due to its unique properties, surpasses the existing one on the market and is more attractive for consumers in a certain segment of the economy in the long term. The formed competitive strategy for the enterprise has appropriate properties and acts consistently and systematically. It solves a whole range of tasks focused on researching the environment, market segments, competitors' activities, and the company's capabilities. All of them make it possible to implement such a competitive strategy that will allow the enterprise to remain flexible and at the same time have a high level of financial stability, solvency, ensure its high cost, efficiency of production processes and product quality, which, in turn, will allow it to be competitive on the relevant market.

Financial and security capitalization of innovative business in management accounting of international projects of effective marketing and logistics competitive strategy of enterprises

Financial and security capitalization of innovative business in management accounting of international projects of effective marketing and logistics competitive strategy of enterprises

Aggressive or not aggressive: the different role of ego-network dynamics and density in the international network

PurposeThis study aims to explore the effect of competitive aggressiveness on firm performance and the moderating effect of firm 2019s ego-network structures in the international coopetition network.Design/methodology/approachFrom the perspective of strong cooperation of the global automobile industry in recent years, this study uses the global automobile firms in Factiva database as samples to test hypotheses using the least squares dummy variable (LSDV) model.FindingsThis study finds that there is different relationship between the number and variety of competitive actions and firm performance. In addition, ego-network structures have different coefficients for the number and variety of competitive actions.Originality/valueThe conclusions provide theoretical support and policy suggestions for firms to develop effective competitive strategies according to ego-network structures in the international coopetition network.

კონკურენტუნარიანობის სტრატეგიის თავისებურებები ბიზნესში

The competitive strategy of a business depends on the introduction of modern management practices. According to competitive strategy, businesses can be classified as market leaders, challengers, followers, and market niches, and the key aspects of their competition are analyzed. It is noted that the competition strategies are difficult to implement and require a considerable amount of resources. To develop an effective competitive strategy, we need to get the most information about our competition. We need to continuously monitor our products/services, pricing dynamics, key incentive channels with competitors' similar products, identify competitive advantages or disadvantages. Some market players react only to certain types of offensive action from the opponent and ignore all others. Some respond quickly and sharply to all competitors' actions. Some companies make such strategic actions that it is very difficult to calculate and guess their plans. Competitors in some areas may act harmoniously, while they in other areas can be in constant competition. Knowledge of future reactions gives rivals the keys to deciding how to act - to attack or defend their positions. Considering the examples of successful companies around the world, there is no universal model of competitive strategy for a particular business. Each firm must individually select the strategy that suits it, based on its goals, challenges, and opportunities. Keywords: Business, Competition, Strategy, Management. JEL Codes: M10, M20, M21

THE ROLE OF RESOURCE POTENTIAL IN THE FORMATION OF COMPETITIVE STRATEGIES OF UKRAINIAN AGRICULTURAL ENTERPRISES

The tasks of formation of competitive strategies of agrarian enterprises and increase of their competitiveness are the main factors of development in market conditions. The activity of agricultural enterprises is connected with competition and the need to form competitive advantages, the nature of which depends on the resource potential of economic entities. One of the most important problems of development of domestic enterprises of agrarian sector is the low level of efficiency of using their resource potential. That is why the aim of the article is to analyze and evaluate the effectiveness of resource potential of agricultural enterprises for determining the scope of their further competitive struggle and the formation of competitive strategies. Methodology. Theoretical and methodological basis of the study consisted of the works of domestic and foreign scientists on the use of resource potential of agrarian enterprises. The complexity and focus of the study ensured the use of a systematic approach as a methodological basis. The following methods were used in the study: statistical method (in determining the production of gross agricultural output), correlation and regression analysis (to identify the relationship between gross output of agricultural enterprises and the use of various types of their resources); abstract-logical method (in formulating conclusions). As a result of the study the components of the resource potential of agrarian enterprises were determined, its characteristics were given and the dynamics during 2016-2020 were analyzed. The factors on which the efficiency of the use of resource potential by enterprises of the agrarian sector and the main reasons for the loss of resources in agricultural production were determined. The most influential components of the resource potential of agricultural enterprises and their combinations were identified through the development of correlation and regression model. The main approaches to choosing a competitive strategy of agrarian companies based on the evaluation of their resources were determined. The algorithm of formation of competitive strategies of enterprises in the agricultural sector, taking into account the resource potential, and identified its main stages. Practical relevance. The implementation of the results of the study will ensure the formation of effective competitive strategies of enterprises in the agricultural sector to improve their competitiveness. Scientific novelty. The analysis and evaluation of the resource potential of agrarian enterprises is proposed to carry out with the help of correlation and regression analysis, which allows to determine the degree of dependence of production on the use of different types of resources and their combinations and the possibility of forming competitive strategies of agrarian enterprises, taking into account the impact of these resources.

Adopt Effective Competitive Strategies in Response to Environmental Challenges for National Public Broadcasting Corporation in Developing Countries: A Participatory Approach

One of the challenges presented by a dynamic environment is increased competition. External environmental changes have a significant impact on the survival and success of an organisation. To survive the volatile, unpredictable and highly competitive business environment, it is necessary for an organisation to understand the underlying sources of competitive pressure in its industry in order to formulate appropriate effective strategies to respond to the competitive forces. The study sought to determine how environmental factors affected the competitiveness of the Zambia National Broadcasting Corporation and propose effective competitive strategies to employ. The study was conducted within Lusaka at ZNBC and its key stakeholders. The study utilized a mixed methods research methodology. Questionnaires were used as a research instrument for collecting data from Senior, Middle and Supervisory management roles. Systematic, purposive and snowball sampling techniques were used to select a sample size of 135 respondents. The questionnaires were distributed to 135 people and 111 questionnaires were returned. The data collected using the questionnaire was analyzed using descriptive analysis and inferential statistics (Regression). Inferential statistics was used to determine the relationships between the variables. Seven hypotheses were accepted as they showed a statistically significant relationship between the variables of which they had a p-value of ≤0.05.

ЗАБЕЗПЕЧЕННЯ СТІЙКОСТІ ЕКОНОМІЧНОЇ СИСТЕМИ ЯК ЧИННИК СТАЛОГО РОЗВИТКУ ПІДПРИЄМСТВ ЗАЛІЗНИЧНОГО ТРАНСПОРТУ

Currently, in an unstable economic situation for each company to ensure sustainable operation. A significant proportion of enterprises focus on achieving sustainability and stability and achieve the outlined objectives through effective management in the implementation of an effective competitive development strategy. The problem of sustainable development of railway transport enterprises is relevant both in terms of forming effective mechanisms for ensuring the stability of the country's economy, and as a factor in adapting to global challenges. After all, transport, including rail, is the foundation of the modern economy. The functioning and development of all sectors of the economy, enterprises, their associations and complexes depend on its activities. One of the main forms of struggle for survival, an effective mechanism for selection and regulation in a market economy is competition. Competition is the competition between economic, market actors for markets in order to obtain the greatest profits. State intervention in the economy under conditions when the system is balanced and the structure of the economy – rational, becomes redundant. But within a real, not an idealized free market, when a person is confronted with reality, when state control is weakened, the economic system can be transferred from a state of resilience to instability, leading to imperfect competition. Unfortunately, a real market economic system can be stable for a long period of time only if the state intervenes in the economy. Thus, in the conditions of instability of development of global economic processes and directions of economic development the question of maintenance of stability of economic system remains the urgency. This leads to the need for the state to create economic incentives for all market participants in order to ensure their sustainability. Continuous and comprehensive optimization of business processes, improving the principles of management of structural units of the industry, focusing on improving the efficiency of transport production and maintaining competitiveness in the long run are among the main areas of sustainability of railway transport enterprises; implementation of the transition to innovative railway transport while maintaining the unity of management in all parts of the transportation process; maintaining competitiveness compared to other market participants; development and implementation of new organizational and technological solutions, etc.