Hold of the competitive advantages of dairy enterprises at the local level

Andrei Andreev ()
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Andrei Andreev: Russian Presidential Academy of National Economy and Public Administration

Published Papers from Russian Presidential Academy of National Economy and Public Administration

Abstract: Local (municipal and district) level is represented by the largest number of dairy companies to whom there is a problem retaining competitive advantage. Empirical analysis. The article proves that the dairy plant of this type can offer a combination of competitive advantages, appropriate conditions as the territory of the dislocation, and the presence of specific resources. To analyze the influence of the conditions of location dairy enterprise introduced the concept of «double effect of access» by which the detected difference in the effect of competitive forces – farms, suppliers and consumers. Multidirectional vector of these forces allows us to determine the influence of factors of heterogeneity and sluggishness of the local market to choose from a combination of competitive advantages. Empirical analysis of the dairy enterprises at this level showed that the best adaptation achieves enterprise operating in a deficit of raw milk and a large market sales, rather than vice versa. This company creates the optimal mechanism of transaction management with farms, suppliers and activities focuses on a combination of competitive advantages – the saturation range and low cost. Results. Dairy plant with a rich nomenclature usually develops broad functional abilities, looking for ways to isolate the power advantages, uses a strategy of «narrow differentiation», reaching on a background of rivals high economic results.

Keywords: effect of double access; combination of competitive advantages; specific resources; competitive strategy (search for similar items in EconPapers)
Date: 2014
Note: Published in "Izvestiya Saratovskogo universiteta. New series",
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