Formation of the Enterprise Strategy based on the Industry Life Cycle

Abstract

The article considered the process of forming an enterprise strategy in the following stages: analysis of the external and internal environment of an enterprise, formation of a system of enterprise goals, assessment of alternative development strategies and the choice of one of them, implementation of the chosen strategy, and adjustment of the strategy. It is proposed to analyze the external environment in accordance with the concept of the industry life cycle. The concept of the life cycle of the industry, in particular the main stages of development of the industry and the criteria that are the basis for their identification, has been investigated. It is proposed to use the scientific developments of Porter and use the following characteristics as criteria: behavior of buyers of products (services), changes in goods, the nature of competitive relations in the market, profits of enterprises in the industry and marketing activities. Accordingly, it is proposed to highlight the stages of the industry development: implementation, growth, maturity, decline. Alternative strategies of enterprise development at various stages of the industry life cycle are considered: the strategy for realizing the advantages of the pioneer, the strategy of change response, the strategy of change management, the strategy of stabilization, the strategy of reduction, the strategy for finding segments of steady demand, as well as the strategy of the "last time". The main characteristics of these strategies are studied. The analysis of the life cycle of the agricultural industry in Ukraine has been carried out and it has been established that according to most of the characteristics it is at the stage of maturity. The industry has established relationships between producers and business consumers, enterprises receive average profits and specialize in the production of certain types of agricultural products of sufficiently high quality, and there are processes of gradual ousting of competitors from the market. It is proposed to agricultural enterprises as a possible strategy to implement a stabilization strategy that best suits the conditions of the external environment.

Business strategy of for-profit-oriented sports enterprises in Hungary

“…On the other hand, many scientific pieces of research detailed the main types of strategies for enterprise environment [16], such as macro-, immediate and internal environment [16]. Zhikhareva and Saveleva [17] described the selection of optimal strategic elements in the planning, Karpenko et al [18] emphasised the stages of strategy formation, while the topology of enterprise strategies was introduced by Barnard [19] and was connected to the number of levels and the development of the host country. Thompson and Strickland [21] proposed the primary strategy formation stages as defining ground rules, setting the major aims and targets, and describing the strategic development and the way of the execution.…”

“…Enterprises must be able to act immediately to sudden changes in the external environment and to adapt to these changes rapidly. Besides the formation of the mission goals and the selection of the appropriate strategic elements, the enterprises should also gradually monitor and evaluate the entire strategic development process, which consists of the following stages [18]: a) analysis of the outside and inside factors of the business operation b) development of a set of business goals c) evaluation of several other development possibilities d) selection and application of the strategy e) modification of the strategy Consequently, strategic management explicitly investigates the connection between the operating context of large and well-established companies and their market environment. However, small enterprises must also know the available business direction and opportunities.…”

Metody monitorowania makro- i mikrootoczenia przedsiębiorstwa

“…Przedsiębiorstwa wchodzące na rynek w tym czasie mogą wykorzystać efekt skali oraz stabilizować jakość swoich produktów. Jednocześnie istniejące już firmy muszą dostosowywać swoje strategie, aby sprostać nowym wyzwaniom i możliwościom (Karpenko i in., 2021).…”

“…spadek dochodów i płynności finansowej -firmy mogą doświadczać obniżenia przychodów i zysków, co prowadzi do problemów z płynnością finansową i zarządzaniem kosztami (Fudaliński, 2002); -zwiększona konkurencja -w obliczu ograniczonego wzrostu rynku firmy konkurują o udziały rynkowe, często prowadząc do intensywnej walki cenowej (Fudaliński, 2002); -redukcja aktywów i inwestycji -firmy często decydują się na sprzedaż ak-tywów i ograniczają inwestycje, koncentrując się na bardziej rentownych segmentach rynku (Fudaliński, 2002); -adaptacyjne strategie biznesowe -w tej fazie firmy muszą dostosowywać swoje strategie, co może obejmować restrukturyzację, poszukiwanie nisz rynkowych, dywersyfikację lub wycofanie się z branży (Karpenko i in., 2021); -zmiany w strukturze rynku -może dojść do wycofania się niektórych firm z sektora, co prowadzi do zmian strukturalnych na rynku; firmy pozostające w branży często koncentrują się na obsłudze rynku w ograniczonym zakresie (Fudaliński, 2002).…”

The main aspects of choosing the enterprises' operating strategy

“…DOI: 10.14807/ijmp.v12i6.1758 The study of the content of the first stage of the proposed model allows us to emphasize that the process of forming an operational strategy is impossible without the development of corporate strategy. It is necessary to determine the stage of the life cycle of the industry to form a corporate strategy (Karpenko et al, 2021). Depending on the stage of the life cycle of the industry (introduction, growth, maturity or decline); certain changes take place in it, in particular in sales volumes, consumer behaviour, marketing activities, state of production, etc.…”