Support for competitive capacity of the products of domestic poultry enterprises

Abstract

The articles is devoted to the study of competitive advantages of the enterprises of poultry industry, particularly formation of their key competences. The research considers internal and external competences of the branch enterprises, as well as factors necessary to be concerned in the process of their determination. The work sets a system of indices for appropriate assessment of the competitive capacity of poultry breeding products.

Results of the study confirm that large enterprises have better opportunities to develop key competences and thus, they are more competitive. A high level of income secures a set of competitive advantages for large enterprises, particularly a personal trademark, an opportunity to make aggressive communicative policy due to external advertising, formation of a wide representative and distributive network, appropriate marketing investigations. The opportunity to reinvest profit, as well as advantages of specialization and concentration of production supply conditions for introduction of innovations and reduction of production costs due to application of innovative technologies, whereas high financial stability and liquidity, mobility and adaptability of management attract investors. Large enterprises are leaders in the industry and set prices at the market, considering expenses for production of the enterprise (not the branch). 

Under such conditions, smaller enterprises are more sensitive to pricing policy, and in case they have no their personal trademark and distributive network, they lose consumers. In contrast, a competitive advantage of small enterprises is in the opportunity to produce organic products. Raise of their competitive capacity is possible due to development of an efficient mechanism of state support, namely supply of cheap and long-term credits for technical re-equipment.  

The important directions for support of competitive advantages suggest formation of a price competitive capacity by means of efficient use of resources, intensification of production processes, and introduction of innovations. Conditions of competitive capacity by product’s quality expect conformity to technological and ecological requirements to production processes. Satisfaction of consumers’ needs and expansion of the market can be achieved by deeper processing of the products of poultry breeding, in particular processing for non-food use, product-line expansion, and creation of a trademark.