Theoretical aspects of formation of the commercial production competitiveness

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Visnyk LNAU: Economics of AIC 2020 №27: 39-43

Theoretical aspects of formation of the commercial production competitiveness

Kashuba Yu., PhD,
Brukh O., PhD
Bernatska I., PhD
Perih H.
Lviv National Agrarian University

https://doi.org/10.31734/economics2020.27.039

Annotation

Nowadays, business is based on market relations. The central concept that expresses the essence of market relations is competition. Until the 1990s in Ukraine, the study of competition and competitiveness problem was not done due to the lack of necessity. However today, in the conditions of the current economic system and fierce competition, that issue has become very relevant. Consideration of the essence of enterprise competitiveness is important both for the economy of the country as a whole and for individual producers, because it is a key aspect of a high and permanent profit, as well as a guarantee of the enterprise life, its economic security and stable development. Understanding this, domestic producers set the following goal, particularly meeting the needs that exist at the market, maximizing profits and increasing sales, expanding the share of domestic and foreign markets, ensuring the required level of quality and price of produced products, the introduction of new technological processes and equipment modernization.

In the context of Ukraine's transition to the open market economy, the fight for the consumer in the domestic and foreign markets requires creating and producing truly competitive goods. In this connection, there is a problem of finding economically rational levels of goods competitiveness and the costs of their achieving.

At the competitive market, performance of any business unit is a subject to double control. External control is carried out by competitors, not directly, but through qualitative results of market activity. The objective evaluation of this activity is ultimately made by the buyers (consumers).

Competition is the most efficient and cheapest method of economic control that is unmatched. This kind of control costs the society minimal costs, it not only creates the conditions for providing the buyer with the goods of the required quality, but also facilitates the implementation of this within a certain time. It is an important dynamic force that constantly pushes the manufacturer to reduce production costs and lower the prices, expand production and sales, fight for the buyer, and improve product quality.

Key words

competition, competitiveness, product competitiveness, consumer demand, product range, method of competitiveness, comparative assessment, product-standard

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