ANALYSIS OF THE COMPETITIVE MARKET SITUATION FOR SHAPING THE STRATEGIC DEVELOPMENT VECTOR OF THE ENTERPRISE
During the war, enterprises providing services for the repair of electrical equipment found themselves in conditions of uncertainty and instability. Therefore, these enterprises should clearly define their strategic development vector depending on their size, geographical location, and specializat...
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Alfred Nobel University
2025-01-01
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| Series: | Academy Review |
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| Online Access: | https://acadrev.duan.edu.ua/images/PDF/2025/1/16.pdf |
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| author | Iryna V. Taranenko Volodymyr S. Naumenko Valentyna M. Shevchenko Svitlana S. Yaremenko |
| author_facet | Iryna V. Taranenko Volodymyr S. Naumenko Valentyna M. Shevchenko Svitlana S. Yaremenko |
| author_sort | Iryna V. Taranenko |
| collection | DOAJ |
| description | During the war, enterprises providing services for the repair of electrical equipment found
themselves in conditions of uncertainty and instability. Therefore, these enterprises should clearly define
their strategic development vector depending on their size, geographical location, and specialization,
taking into account the competitive situation in the market.
The article examines the main dynamics of the Ukrainian market for electrical equipment repair
services for the period from 2016 to 2022. The study’s results showed that, before the start of the
full-scale war, the market experienced steady growth and profitability due to the fact that demand for
electrical equipment repair services came from all enterprises using electrical equipment, as well as
organizations and households. In 2022, under the influence of the full-scale invasion, the number of
enterprises, the volume of products sold, and the profitability of operational activities significantly
decreased.
The results of the market analysis of industrial electrical equipment repair services in the
Dnipropetrovsk region, using the Herfindahl-Hirschman index, indicated a low market concentration.
The industry competition analysis, using M. Porter’s 5 forces model, showed that barriers to entry into
the industry are low, with service differentiation being more typical of medium-sized enterprises. Small
and, especially, micro-enterprises provide more standardized services.
Taking into account the identified features and trends in the development of the electrical equipment
repair market, as well as the competitive situation, which is characterized by low concentration, a large
number of enterprises providing similar but not identical services, and low barriers to entry – leading
to significant free entry into the industry for other firms—it is concluded that monopolistic competition
exists in the market.
Based on the results of the analysis, the following main strategic development vectors for
domestic enterprises operating in the electrical industrial equipment repair market were determined:
expanding their presence and service implementation in the region; entering other regions within the
country; mastering new types of electrical equipment repair; and entering the foreign market. The
choice of specific development vectors is substantiated depending on the time horizon, size, and market
opportunities of a specific enterprise. |
| format | Article |
| id | doaj-art-3d6d008dd5c24b6d9f0955e6b0e843bb |
| institution | Kabale University |
| issn | 3041-2137 3041-2145 |
| language | deu |
| publishDate | 2025-01-01 |
| publisher | Alfred Nobel University |
| record_format | Article |
| series | Academy Review |
| spelling | doaj-art-3d6d008dd5c24b6d9f0955e6b0e843bb2025-01-17T06:47:27ZdeuAlfred Nobel UniversityAcademy Review3041-21373041-21452025-01-0116221122610.32342/3041-2137-2025-1-62-15ANALYSIS OF THE COMPETITIVE MARKET SITUATION FOR SHAPING THE STRATEGIC DEVELOPMENT VECTOR OF THE ENTERPRISEIryna V. Taranenko0Volodymyr S. Naumenko1Valentyna M. Shevchenko2Svitlana S. Yaremenko3Alfred Nobel UniversityAlfred Nobel UniversityAlfred Nobel UniversityAlfred Nobel UniversityDuring the war, enterprises providing services for the repair of electrical equipment found themselves in conditions of uncertainty and instability. Therefore, these enterprises should clearly define their strategic development vector depending on their size, geographical location, and specialization, taking into account the competitive situation in the market. The article examines the main dynamics of the Ukrainian market for electrical equipment repair services for the period from 2016 to 2022. The study’s results showed that, before the start of the full-scale war, the market experienced steady growth and profitability due to the fact that demand for electrical equipment repair services came from all enterprises using electrical equipment, as well as organizations and households. In 2022, under the influence of the full-scale invasion, the number of enterprises, the volume of products sold, and the profitability of operational activities significantly decreased. The results of the market analysis of industrial electrical equipment repair services in the Dnipropetrovsk region, using the Herfindahl-Hirschman index, indicated a low market concentration. The industry competition analysis, using M. Porter’s 5 forces model, showed that barriers to entry into the industry are low, with service differentiation being more typical of medium-sized enterprises. Small and, especially, micro-enterprises provide more standardized services. Taking into account the identified features and trends in the development of the electrical equipment repair market, as well as the competitive situation, which is characterized by low concentration, a large number of enterprises providing similar but not identical services, and low barriers to entry – leading to significant free entry into the industry for other firms—it is concluded that monopolistic competition exists in the market. Based on the results of the analysis, the following main strategic development vectors for domestic enterprises operating in the electrical industrial equipment repair market were determined: expanding their presence and service implementation in the region; entering other regions within the country; mastering new types of electrical equipment repair; and entering the foreign market. The choice of specific development vectors is substantiated depending on the time horizon, size, and market opportunities of a specific enterprise.https://acadrev.duan.edu.ua/images/PDF/2025/1/16.pdfmonopolistic competitioncompetitive situation on the marketelectrical equipment repair servicesmarket concentrationstrategic vector of development |
| spellingShingle | Iryna V. Taranenko Volodymyr S. Naumenko Valentyna M. Shevchenko Svitlana S. Yaremenko ANALYSIS OF THE COMPETITIVE MARKET SITUATION FOR SHAPING THE STRATEGIC DEVELOPMENT VECTOR OF THE ENTERPRISE Academy Review monopolistic competition competitive situation on the market electrical equipment repair services market concentration strategic vector of development |
| title | ANALYSIS OF THE COMPETITIVE MARKET SITUATION FOR SHAPING THE STRATEGIC DEVELOPMENT VECTOR OF THE ENTERPRISE |
| title_full | ANALYSIS OF THE COMPETITIVE MARKET SITUATION FOR SHAPING THE STRATEGIC DEVELOPMENT VECTOR OF THE ENTERPRISE |
| title_fullStr | ANALYSIS OF THE COMPETITIVE MARKET SITUATION FOR SHAPING THE STRATEGIC DEVELOPMENT VECTOR OF THE ENTERPRISE |
| title_full_unstemmed | ANALYSIS OF THE COMPETITIVE MARKET SITUATION FOR SHAPING THE STRATEGIC DEVELOPMENT VECTOR OF THE ENTERPRISE |
| title_short | ANALYSIS OF THE COMPETITIVE MARKET SITUATION FOR SHAPING THE STRATEGIC DEVELOPMENT VECTOR OF THE ENTERPRISE |
| title_sort | analysis of the competitive market situation for shaping the strategic development vector of the enterprise |
| topic | monopolistic competition competitive situation on the market electrical equipment repair services market concentration strategic vector of development |
| url | https://acadrev.duan.edu.ua/images/PDF/2025/1/16.pdf |
| work_keys_str_mv | AT irynavtaranenko analysisofthecompetitivemarketsituationforshapingthestrategicdevelopmentvectoroftheenterprise AT volodymyrsnaumenko analysisofthecompetitivemarketsituationforshapingthestrategicdevelopmentvectoroftheenterprise AT valentynamshevchenko analysisofthecompetitivemarketsituationforshapingthestrategicdevelopmentvectoroftheenterprise AT svitlanasyaremenko analysisofthecompetitivemarketsituationforshapingthestrategicdevelopmentvectoroftheenterprise |