Competitive Advantages of Effective Relationships of Business Entities as a Basis for Economic Development of Ukraine

Butenko Nataliia V. () and Tereshchenko Olena L. ()
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Butenko Nataliia V.: Taras Shevchenko National University of Kyiv
Tereshchenko Olena L.: PrJSC Insurance Company PZU Ukraine

The Problems of Economy, 2016, issue 4, 176_182

Abstract: The aim of the article is to determine the transformation of sense of relationships between business entities in the national economy as well as basic ideas and principles of forming competitive advantages of effective relationships. The objective preconditions for the transition from the confrontation strategy to relationships as a basis of interaction of business entities in the structure of the national economy are analyzed. It is determined that the weakening of the antagonistic dominant of competitive relations and the growing importance of a constructive component of partnership has become a background of the desire of business entities to establish effective relationships. The attention is focused on the trends of the cooperation and integration approach to competitive behavior, which is manifested in such forms of competitive interactions as coordination, constructive interaction and competitive collaboration in order to achieve individual and common goals of competitive relationships of the entities. The competitive advantages based on establishing long-term and effective relationships are considered. The peculiarities in the formation of the system of relationships in the insurance market are justified, in particular the causes hindering the development of relationships in the sphere of security are determined, the main partners — entities in the system of relationships in the insurance market are identified, the levels of relationships management in the insurance market are determined. Among the advantages of the use of effective relationships in the field of insurance are the following: improving the company’s image, attracting new customers, additional sales of insurance services, limiting the access of competitors’ offers, more efficient use of the advertising budget, improving the efficiency of the development of new insurance products and services, increasing the profits and value of brands, improving relations with investors.

Keywords: relationships; business entities; partnerships; competitive advantages; level of relationships (search for similar items in EconPapers)
Date: 2016
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