Strategies to Diversify International Activity of Ukrainian Metallurgical Enterprises

Abstract

The article is focused on researching and developing strategies for the diversification of international activities for enterprises in the Ukrainian metallurgical industry. It is emphasized that the metallurgical industry is of strategic importance to the economy of Ukraine, as it is a net exporter, generates numerous job opportunities, contributes significantly to the country's GDP, and attracts foreign capital investments. Various international diversification strategies are proposed, including diversification of sales geography, diversification of production, and diversification of the product portfolio. A comparative analysis is conducted to determine the advantages and disadvantages of each strategy, to identify the most relevant approach for specific enterprises. The comparative analysis revealed that diversification of international activity is the most effective strategy for minimizing risks and maintaining the profitability of companies. Three diversification strategies for the international activities of Ukrainian metallurgical enterprises are proposed, which include diversification of sales geography, diversification of production, and diversification of the product portfolio. Recommendations and measures for implementing each of the proposed international diversification strategies are presented. It is determined that, given the current war conditions, the priorities for metallurgical enterprises in developing strategies for international activities are the optimization of supply chains, including the creation of joint ventures with neighboring countries, providing conditions for the creation of high-value-added products, improving production capacities, and taking into account the factor of decarbonization to reduce the impact of the Carbon border adjustment payment.