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Viktoriia Nekhai, Yuliia Voloshchuk, Larisa Satyr, Kateryna Voloshchuk y Oleg Kravets
Production of engineering products as an element of social growth in the global world: legal
factor of development
Dierences in the relative cost of labor, energy and other resources lead
to countries having dierent technologies, and this also aects the denition
of business... Dening the company’s driving force means identifying the
key aspects of the strategies on which attention will be focused. However,
this does not necessarily imply disdain for other aspects. Concentrating
major eorts on technology or product oerings does not mean that the
ability to meet market needs or identify key target segments can be ignored.
Rather, it allows you to determine priorities when allocating management
eorts and when evaluating new projects (Douglas and Craig, 1985).
Researcher Researcher David Buisson notes:
Trade in standardized goods is the largest business in the world, and every
year its volume continues to grow. 70% of the 125 most important sectors of the
world economy receive more than half of their export revenues from the sale of
primary products. The ever-changing situation, ever-increasing competition and
the increase in the number of large multinational companies aect the nature
of global product markets, while the role of marketing as one of the aspects of
business activity is increasing (Baker, 2002: 577).
The author points to competition as a force that aects the development
of enterprises, but one should not forget that it can lead to the disappearance
of an enterprise, and sometimes an industry.
Such a threat exists, obviously, for many branches of the economy of
Ukraine. For example, for the country’s agricultural machinery industry,
a situation has arisen when foreign-made machinery enters the country’s
market in large quantities. The purchasing power of domestic agricultural
producers is low, so the market oers used foreign machinery.
At the same time, domestic factories for the production of agricultural
machinery, components and repair kits for it produce products that are quite
aordable in terms of price indicators, but improper sales organization is
noted and, as a result, preferences on the side of foreign models.
Jean-Jacques Lambin points out the driving forces behind
competitiveness management in an industry:
A rm’s ability to gain a competitive advantage in its base market depends not
only on the direct competition it faces, but also on other forces such as potential
market entrants, substitute goods, buyers and suppliers. The rst two forces are
threats, and the other two are indirect, depending on their ability to dictate their
demands. The company’s prot potential in the commodity market is determined
by the complex inuence of all ve forces (Lambin, 2006: 303).
With this statement, Jean-Jacques Lambin indicates that the
development of enterprises under the conditions of dierentiation of
production solves such social issues as providing consumers with more
unique goods, those that have a greater value for consumption, and needs
are satised most fully. In addition, the degree of awareness of novelties
increases, which generates new requests.