Mikhail Delyagin in his work “World Crisis” describes the basic principles theories of global competition. This is competition in the era of globalization, conducted under the dominance of world monopolies, in unifying markets not only by economic methods. It is harsh and all-encompassing and leads to the degradation of the weakest participants. In international relations, “friendship exists between peoples, but competition dominates between societies and countries.” Global competition is becoming intercivilizational in nature.

In the long term, global instability will increase. Expansion is an integral feature of a market economy: development goals dominate over the goals of maintaining the status quo. The United States had a strategic goal in World War II - provide free access to the national economy to new markets through the destruction of political barriers and decolonization. The new economic order created conditions for global competition, where American monopolies won.

When forecasting the economic development of Russia and other Eastern European countries, mainly internal factors and resources are taken into account. The influence of the global economic, political and information environment is ignored or poorly taken into account, which turns traditional forecasting into a dangerous tool of complacency.

At the beginning of the 20th century, the world economy achieved exceptionally high integration, for which political management systems were not ready. As a result of the elimination of internal barriers in markets, competition between developed countries intensified, which was one of the reasons for the outbreak of World War II.

After the war, economic growth was achieved by further overcoming the segmentation of the world market until the end of the Cold War ended it completely. However, the new integration primarily in the information services market has given rise to new insurmountable problems and a new wave of segmentation between successful and undeveloped countries - between the rich “golden billion” and the poor.

The growth in the efficiency of information technology has led to the classic “crisis of overproduction” of information services and structural crisis of the world economy. The combined investments (in each other) of the United States, the European Union, Japan and other member countries of the Organization for Economic Cooperation and Development (Paris Club) account for 95% of total foreign direct investment. Such self-isolation deprives them of new markets. There is “information overproduction” in conditions of unexpectedly increased limited capacity of global information markets. The West's dependence on the rest of the world is limited primarily to energy and labor resources. Among the latter, preference is given to intellectual resources and resources to compensate for the demographic crisis.

The expansion of global markets is constrained by poverty and sociocultural barriers in developing countries. Technologies of propaganda and even information processing are not always perceived under a different civilizational paradigm. Limitation of the sales market leads to a reduction in the flow of resources for the further progress of Western information technologies. This in turn gives rise to internal problems and partial marginalization of the middle class in developed countries, where the social security system, especially in the United States, is ultimately oriented towards the stock market. The crisis of the “digital divide” between rich and poor countries can be overcome by qualitatively reducing the cost and simplifying the dominant technologies.

Global competition is conducted by heterogeneous actors pursuing disparate goals and operating in different ways.

Numerous non-governmental and non-economic organizations have become active and influential participants in global competition, including:

• world civilizations;
• transnational corporations;
• non-governmental organizations;
• individual regions;
• religious organizations;
• environmental movement;
• anti-globalization movement;
• criminal organizations;
• criminal business;
• intelligence services, etc.

However, their activities in most cases are interconnected with government policy. The American administration purposefully created non-governmental organizations for the development of democracy and “civil society” as outposts of its influence in certain regions of the world.

The division of humanity along civilizational lines is becoming an important factor in international competition.(“sociocultural barriers”). The disappearance of the bipolar system destroyed the force field created by the confrontation between socialism and capitalism, and released new globally significant civilizational initiatives. The Islamic and Chinese civilizations that carry a powerful social charge stand out here. As a result, international competition is rapidly acquiring the character of intercivilizational competition. Its participants are divided deeper than the peoples of one civilization. Not only do they pursue different goals with different methods, but they also cannot always understand other values. Global competition between world civilizations manifested in the spread of the financial and economic expansion of the West, religious (Islamic) expansion and ethnic expansion of Greater China (taking into account the global community of the Chinese diaspora). Moreover, in our opinion, these expansions occur in different planes of the multidimensional communication space of the Earth.

Each of the three great civilizations, penetrating into the other, does not enrich, but undermines its foundations. Perhaps Islam will become an “icebreaker” for China in relation to the West, similar to the Stalinist Soviet Union, which fulfilled this role for the Roosevelt United States in relation to the old European colonial empires (Great Britain and France).

For global competition, in addition to the civilizational triad of West-Islam-China, not only economic competition, but ideological demarcation between Europe and the USA. American society is focused primarily on ensuring competitiveness, while old Europe strives to live according to historically established humane principles that provide comfort. This condemns it to collaboration in relation to the expansion of Islamic radicalism, as in the past in the face of the “Soviet threat.” However, conflict avoidance may save Europe from being drawn into large-scale destructive conflicts.

The world is experiencing tougher competition due to deteriorating market conditions. Competition in sales markets is complemented by intense competition in resource markets (material, financial and human). In the 1990s, the West experienced a period of rapid and complacent prosperity at the expense of the resources of the defeated “socialist camp.” An additional factor in prosperity was the release of the resources of developed countries, diverted in the past to ensure national security, and their transfer for consumption. This reorientation slowed technological progress.

The rapid economic integration of the era of globalization has made global competition not only pervasive, but also turned it into its own opposite. From a tool for stimulating inefficient economies, it has turned into a weapon for their mass destruction. Increasing global competition could lead to the physical elimination of most of humanity engaged in “inefficient” production from the point of view of Western criteria.

Regional communities are becoming subjects of global competition. The division of the global market into a system of regional markets will contribute to the development of less efficient national economies due to a decrease in the intensity of competition. Moreover, the weaker the economy of a particular region, the less effective regionalization will be. Regional economic integration can be successful if there is a strong global competitor. The subjects of global competition are individual regions that have more significant resources and effective management than their country as a whole, for example, the state of California (USA) or Shanghai (PRC).

As a result of globalization, the slogan “Get rich!” ceased to be an effective market mechanism for human development. In global competition, a competitor can be defeated with the help of information technologies for the formation of public consciousness; this will be discussed in Chapter 4.

Soon main subjects of global competition there will be the USA and China. Former contenders for leadership in this fight have dropped out of the race. The 1990s were almost completely lost for Japan and Eastern Europe. The Japanese economy, which made an economic breakthrough based on the model of “catch-up development” and borrowing Western technologies, was unable to create its own technological principles, which closed its path to the highest level of the world technological pyramid. This is especially true for Southeast Asia, which is completely technologically dependent on highly developed countries. The region has exhausted the potential of the industrial model of “catch-up development”, as a new information era has arrived, requiring new approaches and development resources.

Muslim civilization is, along with the West and China, the third main participant in the competition of civilizations. According to Delyagin, the demographic factor will not allow this civilization to suffer final defeat, but resource (technological) insufficiency will not allow it to win.

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Features of international competition

1. The concept of international competition

International competition) - competition between resident companies of different countries in national and world markets.

Successful business conduct by a company in an international (global) competitive environment presupposes, first of all, its ability and ability to adapt to the requirements of this environment and benefit from it in accordance with its goals and objectives.

These skills and abilities constitute core competencies companies.

Competence-the ability to correctly apply knowledge and skills (know-how) to solve specific problems in given specific situations.

Key competencies of the company:

competence in developing and implementing effective competitive strategies;

ability to carry out constant innovations and perform all functions at a high quality level;

the ability to create, maintain and develop responsible, partnership-based, trusting relationships with its stakeholders (suppliers, consumers, investors, local communities, authorities).

The specified key competencies of the company, together with other factors of its competitiveness, constitute competitive advantages.

WITH system of international competitive advantages of the companyconsists of the following main elements:

"intra-company" key competitiveness factors (key competencies);

the company’s ability to apply its key competitive advantages globally (in the space of cross-country business interaction);

competitive advantages of locating various elements of a company's business in different countries and regions of the world.

The successful implementation of this system of international competitive advantages is manifested in the corresponding stable position of the company in world markets. This position amounts to international competitiveness of the company.

Specific ways for a company to practically transform its system of international competitive advantages into a corresponding sustainable competitive position in world markets are international competitive strategies of the company.

Since in the functioning system of international business the leading place belongs to companies doing business in a competitive global environment of intercountry interaction, it is advisable to consider and evaluate the features of international competition using the concepts: “international competitive advantages of the company”, “international competitiveness of the company”, “international competitive strategies of the company "

This approach to the analysis of international competition is mainly embodied in the works of M. Porter, the world's leading expert on the problems of international competition. In the further presentation of the material on this topic, we will rely on the main ideas, theoretical and methodological approaches of this researcher.

2. Competitiveness, competitive advantages, competitive strategies of the company

The concept of a company's competitiveness.Presenting competition as a characteristic external environment in which an economic entity/firm operates allows us to consider competitiveness as the ability of this economic entity/firm to successfully operate and maintain itself in the economic environment.

2.1 The industry as a group of competitors and M. Porter’s five competitive forces

M. Porter considers the market environment of the industry in which the economic entity/firm operates as the interdependence and interdependence of five competitive forces.

In any sector of the economy - no matter national or global - the essence of competition for a company is expressed by five forces:

) the threat of new competitors appearing in the industry,

) the ability of buyers to bargain (to achieve lower prices)

) the ability of suppliers to bargain (to achieve higher prices for their products)

) the threat of substitute products and services appearing on the market

) the degree of rivalry between existing competitors in the industry. .

Consequently, the intensity of competition experienced by an economic entity/firm in any industry is determined by the impact of the five main competitive forces on it.

As a result, the competitiveness of a firm/company is its ability to successfully withstand the pressure of the five competitive forces. However, a company's competitiveness does not arise by chance as a result of its exposure to the five competitive forces of competition.

It is a consequence of the company's implementation competitive strategiesaimed at creating and maintaining certain competitive advantages.

“The goal of a competitive strategy for an enterprise operating in any industry,” emphasizes M. Porter, “is to find a position in this industry in which the company can best defend itself against the action of competitive forces or influence them beneficially.” for myself" . .

Thus, it is the competitive advantages formed as a result of the successful implementation of competitive strategies that determine the company’s position in the industry. It is this position that protects the company from the influence of the five competitive forces, which ensures its competitiveness.

Fig. 1 Typical competitive strategies. Source:

Typical competitive strategies of a company as ways of positioning it in the industry.

M. Porter identified three typical competitive strategies, the implementation of which leads to the formation of corresponding competitive advantages for the company:

• achieving leadership in cost minimization;
• differentiation;
• concentration (focusing)
• Each competitive strategy of M. Porter is aimed at creating a certain competitive advantage.
• 1st strategy- achieving leadership in cost minimization - creates a competitive advantage in the form of low costs, which reflect the company's ability to develop, produce and sell a comparable product at lower costs than competitors.
• 2nd strategy- differentiation - creates a competitive advantage in the form of the ability to provide the buyer with unique and greater value in the form of new product quality, special consumer properties or after-sales service.
• 3rd strategy-concentration-, in turn, includes two options - focusing on costs and focused differentiation. According to M. Porter, these strategies are three highly viable approaches to counteracting competitive forces. Moreover, according to M. Porter, “...it is difficult, but still possible to gain a competitive advantage based on lower costs and differentiation.” However, those who solve this difficult problem by developing and successfully implementing various combinations of these standard strategies gain a long-term competitive advantage.
• 2.2 “Value creation chain” - the source of a company’s competitiveness
• The practical implementation of competitive strategies and their translation into corresponding competitive advantages is ensured and supported a system of interconnected main and auxiliary activities, which form the company's value chain.(Fig.2).

Fig.2. Value chain

• Primary activitiesrelate to the physical creation of a product, its marketing and delivery to consumers, and after-sales support and service. Secondary or supporting activitiesprovide the factors of production and infrastructure that make primary activities possible. competitive cluster value porter
• The value chain ensures the practical maintenance of the company's competitive advantagesin the following ways:
• Firstly, thanks to better organization and execution of individual activities that make up the value chain compared to competitors.
• Secondly, by organizing a system of connections between the activities of the value chain and carefully managing it.
• Third, due to the organization of a system of connections not only between the activities of the value chain within the company, but also with the value chains of suppliers, distribution channels, buyers, which, together with the company’s value chain, form value system.
• Considering the value chain as a system of main and auxiliary activities that provides competitive advantages, we should highlight two of them: key functions for realizing the company's competitiveness, it:
• - Firstly, materializes (structurally supports) the unique position that the company has occupied in the market, in the process of implementing the corresponding competitive strategy;
• - Secondly, orients the process of creating competitive advantages towards the company obtaining positional profit;
• - Thirdly,supports the process of creating and transforming competitive advantages into positional profit (added value).
• -fourthly,is a conductor of constant innovative development of the company and its business.
• Thanks to the value chain, a direct relationship is established between the generated competitive advantage and positional profit. Positional profit is greater if the competitive advantage formed on the basis of the value chain is unique and cannot be copied by competitors in the short term, and vice versa.

2.3 Constant innovation is the source of a company’s long-term competitiveness

• A). Types of innovation activities and long-term competitiveness of the company.
• The long-term success of a company in the market is determined by the presence of such competitive advantages that cannot be copied by competitors in the short term.
• Permanent innovative development of the company-according to M. Porter - is the source of the formation and maintenance of its long-term competitive advantages.
• Innovative development is ensured by a whole set of constantly ongoing innovative processes ( types of innovative activities):
• -development of a new product or qualitative change in an existing product;
• -development of new methods of production and distribution (warehouse, delivery and sales) of the product;
• -development of new sales markets;
• -development of new sources of supply of raw materials and other factors of production;
• -development of new forms of personnel work, including methods of recruitment, evaluation, and movement of personnel;
• -introduction of new management methods and standards;
• -changes in management structures;
• -implementation of new or changed strategic company guidelines;
• -implementation of new sources (schemes) for obtaining financial resources;
• -implementation of new methods of accounting and use of financial resources;
• -implementation of new forms (methods) of interaction with “actors” of the environment - suppliers, consumers, competitors, owners, local authorities, government agencies, and other “centers of influence”.
• These types of innovation activities must continually impact value chain(i.e. on the system of main and auxiliary business activities of the company, which maintains its competitiveness). There is a constant and significant impact of innovative activities on the value chain - the company maintains and develops its competitive advantages over the long term and therefore has long-term competitiveness. There is no such impact, and there is no long-term competitiveness.
• Long-term competitiveness- competitiveness based on long-term competitive advantages.
• Long-term competitive advantage:
• - sustainable competitive advantage over time;
• - a competitive advantage that cannot be copied in the short term.
• B). The main direction of innovative development, ensuring the company’s long-term competitive advantage is transition from low-order competitive advantages (use of cheap natural resources and labor) to high-order competitive advantages.

C). Main competitive advantages of a high order:

• 1). Unique technologies and developments - the embodiment of relevant types of innovative activities;
• 2). Intangible assets
• - copyright;
• - patents for inventions, industrial designs, utility models;
• - know-how;
• - trademarks and service marks;
• - brand names;
• - reputation of the company.
• D).Factors providing high-order competitive advantages:
• specific and unique knowledge, outstanding skills and abilities of the company’s managers and personnel;
• appropriate technical and information equipment;
• proprietary innovative and socio-cultural infrastructure;
• responsible and trusting relationships with clients, suppliers, investors, and local communities;

Long-term and intensive investment in: production capacity; in specialized personnel training; R&D; marketing; in building trusting relationships with the company’s environment and reputation.

3.The theory of international competition by M. Porter

M. Porter's theory of international competition is based on two principles: the industry principle and the location principle. Implementing the first principle means applying the concept of the five industry competitive forces, the value chain, to the field of international business. And the implementation of the second principle is embodied in his concept of a “diamond” of competitive country determinants.

3.1 Application of the concept of competitive forces and firm competitiveness to the field of international business

The globalization of international business is manifested in the fact that there is a transition from national industries to global sectors of the economy. This transition gives international competition a global character.

A).Main features and examples of global industries.

In the space of cross-country business interaction, the intensity and nature of the activity of M. Porter’s five competitive forces, which describe the competitive structure of the industry, find their manifestation in various forms of industry international competition.

The forms of international competition vary significantly across industries. By degree of globalization of forms of international industry competitionall industries can be ranked from the lowest - "multidomestic"to the highest - global.

"Multi-national"the form is, as it were, a set of industries of the same type (each within its own country), and competition in each country or a small group of countries, in fact, proceeds independently.

ABOUT distinctive features of the competitive structure of a multi-national industry :

competition between resident and non-resident firms in each individual country or small group of countries occurs in a closed manner and independently of other countries;

a company's competitive advantages in one country have little effect on its competitive position in the same industry in another country.

For example: many types of trade, food production, wholesale trade, life insurance, savings banks, simple hardware manufacturing.

In a global industry competition is on a truly global basis, i.e. competing companies:

use competitive advantages gained in the home country in other countries;

combine the advantages achieved in their home country with those they have achieved through their presence in other countries, such as economies of scale, the ability to serve customers in many countries, or a reputation that can be established in another country;

rely on the benefits arising from their activities around the world.

Global competition takes place in such industries as the production of civil aircraft, televisions, semiconductor devices, copying equipment, household appliances, cars and watches, and mobile phones. In a global industry, intra-industry competition is intensifying, which is becoming international and global in nature: firms, willy-nilly, have to compete in the international market in order to gain or not lose a competitive advantage in the most important segments of the industry.

The globalization of industries especially intensified after the Second World War. Currently, many industries are in a state of transition from a “multi-national” to a global form, so the development global competitive strategiesvery important for firms in many countries.

B). Global competitive strategy is a way for a firm to achieve competitive advantage in a global industry .

Global competitive strategy - a competitive strategy in which a firm:

sells its products and conducts its business in many countries;

applies a unified approach to achieve sustainable competitive advantages.

A unified approach contained and implemented by a global strategything is,

Firstly,When developing a strategy, the main issue becomes the placement of different parts of the value chain (main and auxiliary activities) in the space of cross-country business interaction and ensuring its operation so that the company's goods can be sold and business done around the world.

Secondly,the practical implementation of the global strategy certainly means the use of two distinctly complementary methods,with the help of which a company can achieve a competitive advantage or compensate for various disadvantages due to conditions in a particular country.

First method -business configuration: The most advantageous location of various types of core and supporting activities of the value chain in different countries to best serve the global market, extract and realize competitive advantages.

Second method - coordinationglobally distributed parts of the company's business, i.e. coordination (coordination) by a global company of the activities of its branches scattered around the world and other departments.

For example, the location of the parts of the value chain directly related to the buyer (marketing, product distribution and after-sales service) is usually tied to the location of the buyer. In addition, the location of other activities may be tied to the location of the buyer due to high transportation costs or the need for close interaction with the buyer. On the contrary, activities such as production and supply of raw materials, components, semi-finished products, etc., as well as auxiliary activities (development or acquisition of technology, R&D, etc.) can be located regardless of the location of the client - such activities can be performed where whatever.

IN). Configuration and coordination are the main methods of global strategy.

When implementing configurationsyou need to answer the question: In which and how many countries is each value chain activity performed?

For example, should Ford produce cars at one large plant in the United States or build additional plants in Western Europe and Russia?

Coordinationrequires an answer to the question: How are dispersed activities (i.e., activities carried out in different countries) coordinated?For example, do different countries use the same brand and sales tactics, or does each branch use a different brand and tactics tailored to local conditions?

The answer to the first question allows you to define and implement a specific configuration type.The practical answer to the second question comes down to the implementation of such aspects of global coordinationbetween elements of the selected business configuration in the intercountry (global) space, as an exchange of information; distribution of rights and responsibilities between departments; coordination of the efforts of the company's divisions within the framework of the transnational corporate governance system.

There are two main type of business configuration: concentration of activities and dispersal of activities.The main motive and basis for a company to choose one or another type of configuration is the opportunity to obtain sustainable competitive advantages and neutralize disadvantages from the conditions of the home country and the host country.

First view configurationsmeans the concentration of a significant part of the main and auxiliary activities of the value chain in any one country with the subsequent export of finished products or parts abroad.

The main reasons for the concentration of activities are:

large economies of scale when performing a particular type of activity;

the effect of a sharp drop in production costs as a new product is developed, due to which it is profitable to produce products at one plant;

placing related activities in the same location to facilitate their coordination.

A focused, or export-based, business configuration is typical for industries such as aircraft manufacturing, heavy engineering, and the production of structural materials.

Second type of configurationmeans dispersing the main and supporting activities of the value chain across different countries and regions of the world. The main tool for the practical implementation of dispersal is foreign direct investment, which is a distinctive feature of this type of business configuration.

The main reasons for the dispersal of activities are:

significant differences in local needs in different countries

establishing close contacts with clients through the development of marketing and service departments in various countries;

a response to pressure from governments of countries pursuing strict protectionist policies;

the opportunity to accumulate valuable experience and develop key competencies through analysis and exchange of information from different parts of the world by placing their branches and divisions in them.

Dispersed business configurations involving large foreign direct investments are common in industries such as consumer packaged goods, passenger car manufacturing and distribution, medical care, telecommunications, and many service industries.

D). The system of global competitive advantage of the company.

A global firm, implementing its global strategy by methods of configuration and coordination, discovers and actively uses two main specific sources of its competitive advantage:

accommodation activitiesacross different countries;

company structure, supporting its activities around the world.

Competitive advantages from location of activitieslies in the ability of a global firm to distribute different types of activities between countries depending on where it is preferable to carry out one or another type.

At the same time, the main reasons for locating a particular type of activity in a particular country are:

lower cost of production factors;

favorable conditions for conducting R&D;

gaining access to specialized skills and unique competencies available in these countries;

developing relationships with key clients.

In addition, competitive advantages based on locating activities in a particular country come either from the firm's home country or from other (host) countries in which the firm operates.

A global firm, firstly, seeks to use the advantages obtained in the home country to penetrate foreign markets in host countries, and secondly, it uses the advantages obtained from performing certain types of activities abroad to enhance advantages or compensate for disadvantages in home country. Thanks to this cross-application of benefits from the home country and from the host countries competitive advantage from placementis significantly strengthened and is becoming global.

Competitive advantages based on firm structure, i.e. on the system of organizing the implementation of various activities of the value chain around the world, stem from the total volume of trade of the firm, the speed of absorption of technologies and products at all the enterprises of the firm around the world, the ability of the firm to coordinate activities “at home” and abroad and are not dependent on location.

Any company embarking on the path of international business to achieve success in global competition and ensure sustainable competitiveness must rely on a system of global competitive advantage.

However, the company needs to create such a system.

FirstlyThe company must achieve a certain competitive advantage in its home country, sufficient to enter foreign markets.

Secondly,Our firm must learn to create and take advantage of the location and structure of its business throughout the world.

Third,it must be able to combine the advantages achieved at home with the advantages of locating certain activities in other countries and of the firm's system of operations throughout the world.

As a result, these two additional advantages of the outside world, in combination with those achieved “at home,” make the latter more resilient, and at the same time compensate for the disadvantages of the situation in the home country.

Thus, the advantages of different sources are mutually reinforcing and form a system of global competitive advantage of the company.

Conclusion:The combination of advantages created by configuration and coordination methods from:

conditions in the home country;

from locating certain types of activities abroad;

from the system of organizing the world activity (structure) of the company forms a system of global competitive advantage of the company, ensuring the sustainable international (global) competitiveness of the latter.

3.2 Determinants of competitive advantage of countries and regions

A). Determinants of M. Porter’s “national diamond”

Today, the globalization of competition has become a generally accepted fact, focusing on the benefits of firm structure and locating operations in other countries.

However, the competitive advantages of firms stemming from conditions in the home country ( cradle of the company ) are important for the formation of a system of global competitive advantage and sustainable international competitiveness of a company in a given country for several reasons.

Firstly,The home country, with its unique, specific features of the economy, culture, population, infrastructure, management, national values, history, is a platform for the company’s global strategy, aimed at combining the advantages achieved in the country with those that provide a strong position for the company in the world.

Secondly,the presence in the home country of constantly maintained favorable (or unfavorable) conditions and corresponding incentives for generating a powerful flow of innovative processes plays a decisive role in achieving international competitiveness, both for firms and their home country itself.

A country's competitive advantage at the international level is determined by a certain set of determinants - “national diamond” by M. Porter ((Diagram 1). It includes four key groups of country characteristics that form the environment in which local firms compete and develop competitive advantages that influence their international success:

· Factor parameters, that is, those specific resources (natural, labor, technological and investment, infrastructure, etc.) that are needed for successful competition in a given industry.

· Demand parametersthat is, what is the demand in the domestic market for the products or services offered by a given industry (its volume, structure and nature of growth, as well as mechanisms for transferring preferences of the domestic market to the markets of other countries).

· Related and supporting industries,that is, the presence or absence of related and supporting industries in the country that are competitive in the international market.

· Firm strategy, structure and competition,that is, what are the conditions in the country that determine the process of creating company management systems, and what is the nature of competition in the domestic market.

There are two additional variables that significantly influence the situation in the country:

· Random events.

· Public policy.

Random in the context under consideration are events that have little to do with the conditions for the development of the country's economy, and which often neither firms nor the government can influence. The most important events of this kind include invention, major technological shifts (breakthroughs), sharp changes in resource prices (for example, an oil shock), surges in global and local demand, political decisions of local and foreign governments, wars and other force majeure circumstances. Random events can change the positions of rival firms. They can negate the advantage of old competitors and create the potential for new firms that can replace old ones once they achieve the required level of competitiveness in new, changed conditions. The state, according to Porter, should play the role of a kind of catalyst for competitiveness. The state, through its policies, can influence all four components of the national diamond, but this influence can be both positive and negative. Therefore, it is extremely important to clearly formulate public policy priorities. General recommendations are: encouraging all kinds of development, increasing competition in the domestic market, stimulating the production of innovations.

Recognition of the significant role and importance of “country” conditions (determinants) shaping the competitiveness of companies is reflected in regularly published ratings of the global competitiveness of countries by various authoritative international organizations. For example, the World Economic Forum's Global Competitiveness Report uses two approaches to analyzing competitiveness.

First approachfocuses on the competitiveness of economic growth of national economies (this approach was developed by J. Sachs and A. Warner and supplemented by J. MacArthur). The main task of the calculated economic growth competitiveness index (Growth Competitiveness Index - GCI)consists of assessing the capabilities of national economies to achieve sustainable development and is based on taking into account three groups of variables :

Technology development;

development of public institutions; And

dynamics of the macroeconomic environment (characteristics of the external environment of national economies in the medium term - 5 years). indicators to measure the ability of public institutions, market structures and economic policies to maintain high current levels of GDP per capita based on the effective use of computers

Second approach, based on the “national diamond”, was proposed by M. Porter. Microeconomic Competitiveness Index (Microeconomic Competitiveness Index - MICI)uses microeconomic niami of production factors and capabilities existing in a given country. MICItakes into account two groups of variables:

the degree of competitiveness of the company and the quality of their competitive strategies;

quality of the business environment (the external environment for companies to do business in a given country).

B).Factors of regional (local) competitive advantages.

In the context of globalization, the economy of any country is competitive to the extent that its regions steadily and dynamically develop their attractiveness and their competitive advantages. In this regard, the role of the region as a location for competitive economic entities is significantly strengthened.

Regional competitivenessrepresents the productivity (efficiency) of using regional resources in comparison with other regions, which is manifested in its development as the location of the most competitive economic entities and in the value of the gross regional product (GRP) per capita.

The main factors of a region’s competitiveness can be identified and assessed using modified regional (local) “diamond” model of M. Porter,including: factors of production of a certain quantity, quality and specialization; a sophisticated, demanding local consumer and unusual local demand that can be served globally; local competitive suppliers and related industries; a local business environment that encourages investment, continuous improvement, innovation and strong local competition. (Scheme 2).

Factors of productionpresented in Diagram 2 , To increase their productivity, they must constantly improve in three areas: efficiency, quality and level of specialization.

The Context of Firm Strategy and Rivalrydepends , Firstly,from: rules, incentives and norms governing the type and intensity of local competition. Secondly,from the existing investment climate, determined by: the structure of the tax system; corporate governance system; labor market policies aimed at developing incentives for the workforce; effective legislation in the field of intellectual property and other areas regulating business in the region. Third,from regional, national policies to changing the nature of local competition: from competition based on low wages and cheap labor to competition based on innovation and the constant development of the key competencies of firms, their managers and personnel. Local demand conditions depend Firstly, from the presence or emergence of sophisticated, demanding and even finicky local consumers who are able to put pressure on firms to develop insight into existing and future needs. Secondly, from the presence of factors that force firms to move from counterfeit, low-quality products and services to competition based on product differentiation and offering unique consumer values.

Factors of local competitive advantages

IN). Clusters and competitive advantages of the region.

In the process of business globalization and increased international competition, the regional processes we have considered (increasing the impact of regional resource potential; creating demand conditions that stimulate the competitiveness of local producers; creating conditions for innovation and improving the quality of strategies and competition of firms operating in the region) find their substantive embodiment in the formation clustersinterconnected firms, organizations, institutions, main, related and supporting industries.

« Clustersare geographically concentrated groups of interrelated companies, specialized suppliers, service providers, firms in related industries, and related organizations (for example, universities, standardization agencies, and trade associations) in certain areas, competing but together with that, and leading joint work.”

Clusters take different forms depending on their depth and complexity, but in most cases they consist of the following basic elements:

Firstly, cluster core, composed of leading finished product company(ies); suppliers of specialized production factors, components, machines, and services; key financial institutions and firms in related industries.

Secondly,firms working with distribution channels or consumers; companies producing by-products; specialized infrastructure providers; governmental and non-governmental organizations providing special training, education, information, research, and technical support.

Third, power structures that have a significant impact on the functioning and development of the cluster.

Fourthly,chambers of commerce and industry, industry associations and other joint private sector structures supporting cluster members.

The internal structure of the cluster has network nature,those. is a system of direct and indirect trusting relationships between cluster participants. The system of business and socio-economic networks of the cluster makes it possible to significantly reduce the costs of production and distribution of important commercial, managerial and technological information between its participants. In addition, the cluster configuration of the regional economy, which has a network basis, creates a whole set of additional regional competitive advantages.

Firstly,more effective interaction of the four sides of the “diamond” is ensured, leading to a higher level of regional attractiveness and competitiveness.

Secondly,complementarity between industries and sectors is developing; the dissemination of technologies, skills, and information between cluster participants is accelerating; the degree of understanding of the requirements of customers, consumers, and clients for the products and services of firms and organizations in the region is increasing.

Third,provides the opportunity to conduct a constructive and effective dialogue between: related companies and their suppliers; government and business; science and business; universities and business.

Fourthly,economic policy focuses on increasing regional attractiveness and competitiveness. (Slide 6, Topic Section 2: Specific situations and additional materials).

Fifthly,the special tasks and functions of government and business in improving clusters are clearly defined (Slides 7 and 8, Section Topic 2: Additional materials of the Educational and Practical Edition).

This set of additional regional competitive advantages provides: increasing the productivity of firms and organizations included in the cluster; building and developing the ability to innovate and thus improve productivity; stimulating the creation of new businesses that support innovation and expand the boundaries of the cluster. (Slide 5, Section Topic 2: Additional materials of the Educational and Practical Edition).

4. Prospects for the formation of clusters in the Tyumen region

The Tyumen region has long been included in the global economy and is under pressure from the forces of global competition. In these conditions, in relation to our region, the task of forming a knowledge-intensive, competitive, economically, socially and environmentally effective cluster for the production, processing and transportation of hydrocarbons becomes particularly relevant.

A special role in the practical solution of this problem is called upon to play the Project for the creation of a Technology and Innovation Park in Tyumen - the main core of the West Siberian Innovation Center for Oil and Gas. The park will specialize in innovations for the oil and gas sector, including all elements of the technological chain: exploration, production, transportation, storage and refining of oil and gas. His competence also includes new technologies for construction, energy, housing and communal services, and other industries. According to the project [for more details, see: 19], proposed on a competitive basis by the Moscow company “Pro-Invest Spetsproekt”, the technology park will be developed on two sites: the building of the regional Youth Palace “Geologist”; plot near Lake Alebashevo.

At the first stage of creating a technology park, the Government of the Tyumen Region allocates a building (ODM “Geologist”) with an area of ​​14 thousand sq.m. in the center of Tyumen The building is planned to house: Information center, Business incubator, Training center, Conference center. The second stage of creating a technology park involves the allocation of a land plot with an area of ​​75 hectares, located in close proximity to the city center, in the area of ​​Lake Alebashevo. On this territory it is planned to locate: Business center, Experimental and production center, Production facilities, Demonstration and testing site and other departments. The creation of a technology park in Tyumen is taking place within the framework of the state program “Creation of technology parks in the field of high technologies in the Russian Federation” and the corresponding order of the Government of the Russian Federation No. 328-r dated March 10, 2006, which provides for the provision of financial support from the federal budget. Expected investments in the creation of the Tyumen Technopark are 7.5 billion rubles. In 2006, work is being carried out at the expense of the regional budget (work on the reconstruction of the Geologist building, which is planned to be completed by the beginning of 2007, and to accommodate the first residents in the spring), in 2007 funds should be allocated from the Federal budget. For the construction of the complex’s infrastructure and its development, funds from private investors and anchor residents will be attracted. The anchor residents of the technology park will be large Russian and foreign companies, such as Lukoil and Schlumberge. Partners are Tyumen State Oil and Gas University, Tyumen State University, Tyumen State University of Architecture and Civil Engineering. As of July 2006, the pool of main project participants (residents) is more than 40 companies, and the number of investment projects for the business incubator is more than 60. Among the main expected strategic results of the Tyumen Technopark, the project developers include: ensuring energy security and sustainable development of Russia; increasing Russia's competitiveness in the technology market for the oil and gas sector; diversification of the economy of the Tyumen region; growth of innovative activity in the Tyumen region (increase in R&D funding, number of patents received, technologies created). [see: 19]. Ultimately, it can be assumed that as the project for the formation of the “West Siberian Innovation Center for Oil and Gas” and its main core, the Tyumen Technology and Innovation Park, is implemented, the formation of a competitive, integrated into the global economy of one of the world’s largest oil and gas cluster.

In the last five years, attention has increased to the Polar Urals, its large deposits of iron ores, chromium, phosphorites, barites, non-ferrous metal ores, gems, precious and rare earth metals. Their industrial development can become the basis for the formation of a new all-Russian and world-wide cluster, the contours of which are visible in the comprehensive document “Ural Industrial-Ural Polar” developed by the Administration of the Yamal-Nenets Autonomous Okrug, OJSC Siberian Scientific Analytical Center, together with OJSC Russian Railways, which justifies the development of a network of railways and automobiles. roads, energy, telecommunication systems. Thanks to the new transport, energy and telecommunications network, the economy of the Arctic Yamal and the Far North will be connected with the industry of the Greater Urals. This will allow the formation of a new cluster based on mineral deposits, forest resources of the Yamal-Nenets Autonomous Okrug, Khanty-Mansi Autonomous Okrug as a resource base for the development of specialized industries in the Middle and Southern Urals, adjacent industrial regions of the Siberian and Volga Federal Districts. In addition, the Polar Urals will give impetus to the development of the engineering complex of the Urals, housing construction in the south of the Tyumen region, educational, scientific, innovation and service centers in Tyumen and Yekaterinburg.

Thus, at present, in the territory of the Tyumen region, with the direct participation of the Governments of the Tyumen region, Khanty-Mansi Autonomous Okrug, Yamalo-Nenets Autonomous Okrug, relying on the support of the Federal authorities, the process of forming powerful clusters of all-Russian and global significance in the oil and gas, energy, timber processing, transport sectors of the economy is underway, preparations are beginning to the development of fields in the Polar Urals, the Yamal Peninsula and the coastal shelf of the Arctic Ocean. All these actions by federal and regional authorities require enormous efforts and are ultimately aimed at ensuring the international competitiveness of the Russian economy. However, regional authorities are interested not only in placing competitive, but also socially and environmentally effective clusters on their territory that provide a high quality of life for the population living in cities and other settlements in the region. The process of forming powerful clusters of all-Russian and global significance dictates its own logic of development to the territorial structure of business and without the creation of an appropriate regional management structure will not give the population of the region the expected results; it will work for itself and for other all-Russian and global subjects of the socio-economic and political space.

Therefore, achieving regional development goals requires a high level of development of small and medium-sized businesses. This development is vital to ensure that the results and benefits of cluster development maximize the competitiveness of local enterprises and the quality of life of the region's population. Small and medium-sized businesses are able, by interacting with large businesses within clusters, to absorb financial flows, know-how, technological and management innovations circulating within the clusters for the territory. In addition, on the basis of these resources, small and medium-sized businesses are able to create growth points for new, regional, diversified businesses. In contrast to the regional oil and gas cluster we considered, it seems possible to identify a second direction for the formation of clusters in the Tyumen region, based on the predominant use of the potential of individual local territories.

As an example of such a local territory, consider the south of the Tyumen region. The leading place in the economy of the South of the Tyumen region is occupied by mechanical engineering, electric power, the food industry, higher educational institutions, research academic and industry centers, and an extensive network of trade and service structures. There are important production facilities in the petrochemical, medical, light and wood processing industries. According to the range of individual types of products, the region’s share in the all-Russian output is: 35-40% of domestic production of batteries, 15-20% of medical syringes and 60-70% of disposable needles, 7-9% of woolen fabrics, about 15% of liquefied hydrocarbon gases. In the mechanical engineering complex, among the mass homogeneous types of products, the production of batteries, woodworking machines and tractor trailers, and certain types of equipment for the oil and gas industry stand out.

In the industry of the South of the Tyumen region there are about 2000 enterprises of all forms of ownership, including more than 200 large, economically significant business entities. The largest enterprises of the industrial complex are the power plants Tyumenenergo, Tyumenneftegaz - a subsidiary of the Tyumen Oil Company, the Tobolsk Petrochemical Complex, the Tyumen Battery Plant, OJSC Tyumen Motor Builders, the Ishim Machine-Building Plant, the Zavodoukovsky Machine-Building Plant, the Krosno Textile Corporation, DOK "Red October", furniture factory "Zarechye", Tyumen plant of medical equipment and instruments. The main economic potential of the industrial complex is concentrated in the cities of Tyumen (50% of total production volume) and Tobolsk (16-18%), 3-5% each produced in Uvatsky, Tyumensky, Zavodoukovsky districts, the cities of Ishim, Yalutorovsk. The main directions of increasing the economic potential of the South of the region are associated with the development of industry.

According to the Concept of Economic Development of the Tyumen Region (without autonomous okrugs) until 2010, developed by the Department of Economics of the Administration of the Tyumen Region, the most promising types of industrial activity in the region include:

petrochemical industry, which ensures increased efficiency in the use of light hydrocarbon raw materials and the production of a wide range of products for domestic consumption and supply of liquefied hydrocarbon gases and additives to environmentally friendly gasoline to the world market;

deep processing of wood with the production of high-quality boards with various coatings, furniture, European standard plywood, planed materials;

industries for which there is a material base, production and sales experience (medical, instrument making, pharmaceutical);

processing of agricultural raw materials, expanding the range of food products and improving their quality;

• mechanical engineering, focused on the production of products for the oil and gas industry, automotive industry, and consumer market.
• The economic potential of the south of the Tyumen region can be significantly enhanced if we take into account the possibilities of combining industry and agriculture with such elements as the system of universities and colleges; academic and industry research and design organizations; an extensive network of trade and service structures.
• Based on the above, for the south of the Tyumen region, the contours of two clusters can be presented in the most general form.
• The first cluster is associated with the provision of medical services, production of medicines and medical equipment
• 1). Healthcare
• Hospital service(Hospitals, hospitals; Specialized medical centers - Cardiac Center, Regional Oncology Center; "Krepysh" - regional children's rehabilitation center, Gastroenterological Service Center; clinics; sanatoriums, dispensaries - "Siberia", "Taraskul").
• Medical equipment(Tyumen Plant of Medical Equipment and Instruments).
• Production of medicines.(Federal State Unitary Enterprise "Tyumen Chemical and Pharmaceutical Plant")
• Developed pharmacy service network
• 2). Creation and transfer of new knowledge
• Universities (Tyumen State Medical Academy, Tyumen State University ) Ssuza(Medical Lyceum of Tyumen )
• Research organizations (Research Institute of Clinical and Preventive Cardiology SB RAS, Tyumen Research Institute of Regional Infectious Pathology)
• Arrays of new knowledge (Dissertation research, methods of prevention, diagnosis and treatment).
• Consulting services
• 3). Information Technology.
• Software
• Telecommunications
• Networking(teleconferences, seminars, diagnostics, information about medications, modern techniques).

4). Associations of commodity producers and businessmen.

A). Tyumen Chamber of Commerce and Industry.

B). Association of Mechanical Engineers of the Tyumen Region.

IN). JSC "Tyumen International Fair"

5). Administration of the Tyumen region

A). Department of Health

B). Department of Industry, Investment and State Support of Entrepreneurship.

B). Department of Strategic Development.

Possible synergistic effects of this cluster include the following:

A).The intersection and close interaction of 1) and 2) blocks can stimulate the development of medical research at a qualitatively new level.

B). The intersection and close interaction of 1) and 3) blocks will ensure high-quality processing and transmission of medical information and create incentives for the development of software for medicine.

IN). The intersection and close interaction of 2) and 3) blocks will ensure the transition of medical education to a qualitatively new level.

The second possible cluster is the forestry and woodworking industry cluster

Forestry (Municipal Unitary Enterprise "Zelenstroy", Municipal Unitary Enterprise "Lesparkhoz", Ishimsky Forestry Enterprise, Tobolsk Forestry Enterprise, Forestry Enterprise "Yalutorovsky", etc.)

Vertical of timber and wood harvesting and processing

A.) Harvesting and transportation of timber(OJSC LP "Turtas"; LLC "Tyumen Forestry Company"; LLC "LP Varvara";)

B). Lumber, sawing, drying and storage services(LLC PKF "Siblesprom"; LLC "Tyumen Forestry Company"; JSC JV "Kedr"; LLC "Lesozavod"; JSC DOK "Red October".)

IN). Building materials and finished houses- window and door blocks, cement particle board and products made from it, three-layer house-building panels, building parts, houses, profile parts, carpentry, (OJSC Sibzhilstroy; Corporation People's House; CJSC JV Kedr.)

G). Wood products- particle boards, laminated chipboards, carpentry, plywood (OJSC Tyumen Plywood Mill; Krasny Oktyabr DOK; People's House Corporation.)

D). Wooden furniture - cabinet furniture, upholstered furniture, office furniture, sofas, beds, armchairs, tables, stools. (LLC "Zarechye"; OJSC DOK "Red October"; Corporation "People's House"; LLC "Inflex"; OJSC "Tobolsk Furniture Factory"; CJSC Sibpromtsentr "Furniture Factory"; Ishim Furniture Factory "Venus")

Equipment for sawmills and woodworking.

A). Sawmill equipment: band saw machine, machine for sharpening band saw teeth, band saw L-5200, 4020, 3570, manufacturing and repair. (JSC "Tyumen Engine Builders")

B). Woodworking machinery(OJSC "Tyumen Machine Tool Plant")

Education and research.

A). Tyumen State Agricultural Academy

B) Forestry College.

IN). JSC "NIIPlesdrev"

5.Associations of commodity producers and businessmen.

A). Association of furniture manufacturing enterprises in the Tyumen region.

B). Tyumen Chamber of Commerce and Industry.

IN). Association of Mechanical Engineers of the Tyumen Region.

G). OJSC "Tyumen International Fair"

6.Administration of the Tyumen region

A). Department of Industry, Investment and State Support of Entrepreneurship.

B). Strategic Development Department .

Literature

1. Porter M. International competition: Transl. from English Ed. And with a foreword by V.D. Shchetinina. - M.: International relations, 2003. Ch.2-4; 11,12.

Porter M. Competition: Transl. from English: Textbook - M.: Williams Publishing House, 2011. pp. 31-84; 205-278; 314-353.

Griffin R., Pastey M. International business, 4th ed./Trans. from English Ed. A.G. Medvedev.-SPb.: Peter, 2006. Chapter 2,

In essence and in content, competition in world markets is no different from the competition that takes place in national markets. But it has a number of significant features. For the most part, these features are due to factors that influence the formation of competitive advantages, but do not operate in national markets. The combination of these factors and the causes that give rise to them is presented in Figure 9.2.

But there are differences of a fundamental nature. The most obvious of them is that competitive rivalry in world markets ceases to be territorially limited. The competitive conditions of the national market are subject to the conditions of global competition. The universality of the action of competition lies in the unifying power of world prices, which become a universal criterion for assessing the achievements of competitors. This means that rivals experience mutual pressure even when they are not physically in contact with each other. As a result, not only global interdependence is formed, but also global consciousness.

Another consequence of global competition is the reduction of opportunities for extracting monopoly profits. By creating equally tense conditions for rivals, it undermines the monopoly position of competitors, and at the same time the possibility of extracting monopoly profits. In this sense, global competition is a factor that contributes to the tendency of the average rate of profit to decrease. In principle, participation in competition in world markets undermines the vital capacity of each participant, pitting them against world-class rivals. This principle manifests itself differently for different types of firms. For a large company, entering the world market is an opportunity to take advantage of the social division of labor. The development of transnational connections contributes to the growth of its innovative activity, and participation in the fight against strong rivals contributes to the accumulation of competitive advantages and strengthening of competitiveness. And since all economic entities, without exception, are involved in the sphere of global competition, it turns into a club for those who have world-class advantages. This means that competition in world markets acts as an instrument of economic exploitation of non-monopoly capital. Consequently, while supporting the downward trend of the average rate of profit, on the one hand, global competition is a factor counteracting this, on the other.

Rice. 9.2.

The distinctive feature of global competition is that it deprives competitors of choice, including them in its orbit against their desire. Competitors must prepare themselves for it in advance. But they must understand that entering world markets, which initially serves as a means of protection from competition, subsequently turns into a reason for its aggravation. Over time, there are no undeveloped territories left in it, no niches free from competition. The global form of competition is the highest and the last stage of development (expansion) of the competitive system.

Global competition requires institutionalization: the development of rules and bodies to regulate it. The need for this is not a consequence of an understanding of the need to streamline the conduct of competition and, especially, not a desire to establish “fair” conditions of competition. The need for it is due to the need to resolve the internal contradiction that lies in global competition. One of the manifestations of this contradiction is that the sphere of economic relations into which economic entities enter outgrows the framework of national legal systems. The activities of participants in global competition, for example, transnational corporations, have a strong impact on the state of national economies, but go far beyond their boundaries, weakening state control over them. There is a need to create universal, supranational legal norms regulating the activities of global capital, which is currently being implemented in the activities of the World Trade Organization (WTO).

Another manifestation of this inconsistency is the asymmetry of the principles applied to participants in global competition in national and world markets. All participants in global competition demand equal conditions for access to markets, while at the same time striving to create more favorable conditions for themselves in domestic markets. Each of them advocates freedom of competition in those areas where it has advantages, and seeks to limit it where advantages lie on the side of rivals. Therefore, globalization is not a compromise between a “closed” and an “open” society, as is often proclaimed, but the struggle for the opportunity to impose competitive conditions that are advantageous to others. The WTO is an institution designed to put this principle into practice.

1.1. Theoretical foundations of international competitiveness

1.2. Management of international competitiveness of an enterprise

1.3. Literature

The era of globalization and geo-economic stratification of the world has caused increased competition in the world market. International competitiveness has become one of the most complex phenomena of modern economic life and has become over the past decades one of the most important problems of economic science and practice.

The modern market environment is developing very dynamically and many countries and enterprises find themselves unprepared for civilized competition. This also applies to a certain extent to Ukraine, whose competitive position in the world market has sharply weakened. However, for Ukraine, increasing the competitiveness of domestic producers and the national economy as a whole is of fundamental importance, since only then will it be able to take its rightful place in the international division of labor, integrate into the world economy, accelerate the market transformation of the economy and improve the standard of living and well-being of the population.

Theoretical foundations of international competitiveness

Competitiveness, in particular international, is closely related to such an economic phenomenon as competition.

Competition (lat. Sopsigege- I encounter) is economic rivalry and the struggle between firms (competitors) for the most favorable conditions for the production and sale of their products.

Competitor - is a natural or legal person or group of persons who are competitors.

The theory of competition was summarized by Adam Smith in his work An Inquiry into the Nature and Causes of the Wealth of Nations (1776). A certain contribution to the development of A. Smith's theory of competition was made by D. Ricardo, J. Keynes, K. R. McConnell, S. L. Brew, M. Porter and others.

Competition is an objective economic law of developed commodity production. It is a dynamic phenomenon, it is compared to a landscape that is constantly changing and in which new products and services, new production processes, new market segments, and new marketing paths are constantly appearing.

Item competition is a product or service.

An object competition is the buyer and consumer.

Subjects competition - these are enterprises, industries, regions and countries.

Depending on the nature of competition, they distinguish between perfect and monopolistic competition, oligopolies and monopolies (Table 1.1).

Perfect (pure, complete) competition assumes the presence of a large number of sellers and buyers in the market. Sellers offer standardized products of the same quality. The share of each company in the market is insignificant and none of the companies can dictate their terms and prices to the consumer. There is no control over prices; the price is set by the market itself based on supply and demand. Demand is very elastic (elasticity of demand (price) is a change in the quantity demanded for a particular product depending on changes in its price. There is demand elastic in price, if a price change of 1% entails a change in demand of more than 1%. There is demand inelastic in price, if a 1% change in price entails a change in demand of less than 1%), there are no non-price methods of competition. There are no barriers to entry into the industry - neither legislative, nor technological, nor financial.

Table 1.1

Characteristics of various forms of markets

Parameters (signs of markets)	Forms of markets
	Perfect or pure competition	Monopolistic competition	Oligopoly	Monopoly
Number of manufacturers		Many, but the product of each of them has significant differences
The Power of Competition	Very high			Absent
Market shares				Whole market
Market access	Open	Complicated	Complicated	Blocked
Pricing policy	Based on the law of supply and demand	Based on demand and competitive ability	Determined by demand and competitiveness	Determined by the manufacturer (seller)
The role of quality in competition	Very high	Very high		Determined by the situation
			Very high	Determined by the situation
Manufacturer profit margin (estimated)	Minor
Resource efficiency	Very high

Perfect competition does not depend on government intervention or monopolies. It is the most favorable for consumers, since manufacturers try to attract them with low prices.

In real life, perfect competition is quite rare.

Monopolistic competition occurs when there are a large number of enterprises on the market that sell differentiated products (product differentiation- is the selection of a company’s products from the total mass of competing products using certain advantages (price, quality, packaging, trademark, etc.). For example, “Coca-Cola,” Pepsi-Cola, and “Sprite” may be sold at the same price, but different consumer groups give their benefits to different drinks). The firm can control price, but the range of this control is narrow. Non-price methods of competition are used, barriers to entry into the industry are insignificant.

Oligopoly - this is a market with a limited number of large sellers who concentrate the supply of a given product in their hands. An oligopoly exists when the number of firms in the market is so small that each of them, changing pricing and other policies, is forced to take into account the reaction of competitors, that is, depends on them. The range of price control is determined by the level of consistency in the actions of enterprises; non-price competition predominates. The obstacles to starting a business are great.

Vivid examples of oligopolistic markets in Ukraine are brewing (88% of products are produced by four large enterprises), margarine production (85 - 90% of the total amount of margarine products are produced by: JSC "Kiev Margarine Plant", JSC "Kharkiv Fat Plant", JSC "Lvov Fat Plant"). In the tobacco market, more than 90% of the total volume of products is produced by such giants as Phi-Lipp Morris, JT International, British American Tobacco and Reemtsma.

In an oligopolistic market, there may be collusion among oligopolists. It can take the following forms: cartel, gentleman's agreement, ring, pool.

Cartel is a formal written agreement on price and market shares with the goal of maximizing overall profits.

Gentleman's agreement- this is a type of informal oral agreement on a joint line of business (including price and market shares).

Boxing ring- this is an agreement between several entrepreneurs to purchase a certain product in a certain region with the aim of concentrating it in the hands of the ring and reselling it at monopoly high prices. In the US, such agreements are usually called "corner".

Pool- is an association of several entrepreneurs in the field of trading, exchange, patent and other activities in order to distribute total expenses, income and profits. The income goes first to the general fund, and then is distributed in a predetermined proportion.

Monopoly is a market in which there is only one enterprise producing unique products. His product has no substitutes and the consumer has no alternative. He can either buy the product from the monopolist or not buy it at all. A monopolist firm sets and controls prices in the market. She is a "price maker" - "price supplier". Demand in a monopoly market is inelastic; entry into the industry is blocked for other firms.

The Ukrainian market is characterized by a high degree of monopolization. The Antimonopoly Committee of Ukraine has set a monopolization target of 10-12% of GDP, but its actual value is currently 40%. The national markets for metallurgical, engineering, chemical, alcohol and alcoholic beverages products are monopolized. For example, the enterprise of the mining and metallurgical complex SJSC "Ukrrudprom" produces 70% of the marketable products of the mining and processing industry, the same amount of iron ore concentrate and over 50% of iron ore tangles. The largest metallurgical enterprises "Krivorozhstal", "Azovstal", "Zaporozhstal" and "Mariupol Iron and Steel Works" have a full production cycle and are monopolists in certain types or grades of products.

In the market for the purchase of agricultural products, a monopoly position is occupied by “Bread of Ukraine” and “Ukrkonservmoloko”.

There are also natural monopolies. In Ukraine, the activities of such monopolies are regulated by the Law of Ukraine “On Natural Monopolies” dated April 10, 2000. No. 1 682-III. Article 1 of this Law notes that a natural monopoly is a state of a commodity market in which satisfying demand in this market is more efficient in the absence of competition due to technological features of production (due to a significant reduction in production costs per unit of goods as production volumes increase) , and goods (services) produced by subjects of natural monopolies cannot be replaced in consumption by other goods (services), and therefore demand in a given product market is less dependent on changes in prices for these goods (services) than demand for other goods (services).

In Ukraine, natural monopolies dominate the markets of electricity, communications, transport, and housing and communal services. Natural monopolists are: Ukrzaliznytsia, Ukrtelekom, Ukrtransnafta, Ukrtransgaz, Ukrenergo and others.

Species competition on other grounds are (Fig. 1.1):

a) by region:

o intra-industry- competition between firms in the same industry;

o intersectoral- competition between firms from different industries;

b) by the method and nature of satisfying consumer demand:

o subject- competition between analogue products that satisfy identical needs, but differ in price and quality level (for example, between mobile phones with the same functions, but different prices and designs)

o species- competition between analogue products that satisfy identical needs, but differ in some essential parameter (for example, between computers with different amounts of RAM);

o functional- competition between different goods that satisfy identical needs, that is, interchangeable (for example, you can quench your thirst with mineral water, juices, beer, etc.);

c) compliance with the law:

o conscientious- competition in accordance with legal norms;

o dishonest- competition in violation of the law;

d) compliance with business ethics:

o useful(“well-behaved” competitors) - competition according to the rules established in the industry;

o useless- (competitors - “destroyers”) - competition in violation of the rules established in the industry.

The existence of good competitors can provide certain strategic advantages and is even necessary for the firm. Such competitors may:

Bear the overall burden of costs associated with market development;

Contribute to increasing aggregate market demand;

Disseminate new technologies;

Serve less attractive market segments;

Promote deeper product specialization. Competitors - "destroyers" are trying to buy up the share

market, often take unjustified risks, destabilizing the entire industry.

In foreign literature, there is such a concept as “Maverick” - non-traditional competitor. This is a competitor who has just entered the market and does not pay attention to the established rules of the game and sets them for himself. All traditional methods of putting pressure on such competitors are ineffective. Examples of competitors of Maverick are Apple, IKEA, etc.

Types competitors:

o straight- these are firms offering the same products to the same categories of consumers;

o commodity- these are companies offering the same products to different categories of consumers;

o indirect- these are companies offering different products to the same categories of consumers;

o implicit (hidden)- These are companies that offer different products to different categories of consumers.

Functions competition are:

o regulating- realized through the interaction of supply and demand;

o location- distribution of resources and benefits according to the criterion of maximum return and efficient use of production capabilities;

o adaptive (stimulating)- forcing manufacturers to introduce innovations;

o controlling- compliance by market entities with uniform rules and norms of competitive behavior.

Methods competition are:

o price- this is competition through prices, primarily by reducing them in order to stimulate demand;

o non-price- This is competition through the distinctive features of the product. It can be carried out by improving product quality, improving sales methods, expanding the scope of after-sales service, increasing the warranty period, using advertising, providing consumer loans, and the like.

Competition can take place at the following levels:

- Local- in a group, department, organization, etc.;

- Regional- in the region, city, region, etc.;

- National- in the country;

- International or transnational- in several countries;

- Global- on a global scale.

International competition - this is a form of competition between global market entities that arises in the process of their cross-border interaction.

The most important feature of international competition is its specific economic, political, legislative environment and special sociocultural background. The modern world market is qualitatively and quantitatively different from domestic national markets. In particular, the legal framework for the functioning of national markets is of a legislative nature. There are no laws for the functioning and regulation of the world market. International law is not legislative, but precedent and conciliatory in nature. Despite vigorous efforts, a system of international economic law and global norms and a culture of market behavior have not yet been created.

Currently, the basis for the survival of the vast majority of market entities is not servicing national and regional markets, but the global market, not limited by national borders. The globalization of the world economy has led to the emergence of global competition.

Global competition - this is a form of competition between global market entities in which they develop, produce and sell their goods and services around the world. It arises when a company decides to maximize profits using global sources of its formation.

In global competition, prices and competitive conditions of different markets are closely intertwined, so the competitive position of a company in one country is inextricably linked with its position in other countries.

Now global competition is developing under the influence of the following main trends: reducing differences between countries, the emergence of new large-scale markets, free movement of technologies, aggressive competition of companies in newly industrialized countries, and the like.

Obstacles to global competition include: transportation and warehousing costs, different product needs in different countries, insufficient demand in the global market, sensitivity to time delays, different marketing challenges, rapid changes in technology, government obstacles, etc. similar.

Features of competition in global industries are:

o complexity for analysis and strategy formation(in general, information about foreign companies is more difficult to obtain than about domestic ones)

o difference in production costs(in some countries the level of production costs is low due to cheap labor, unique natural resources, favorable legislation)

o fluctuations in exchange rates;

o the company's relationship with local governments(Local governments use numerous mechanisms that can hinder the activities of global firms).

Global competition develops primarily in global industries. Global industry is an industry in which a firm's competitive position in one country greatly influences its competitive position in other countries. In conditions of multinational competition, firms fight for leadership in the national market; in global industries, firms fight for world dominance.

Global competition currently exists in the following areas: civil aircraft, commercial aviation, consumer electronics, automobiles, watches, copiers, telecommunications equipment, tires, pharmaceuticals, fast food, etc.

Factors of globalization of competition can be internal and external. To the main factors of globalization of competition relate:

o expansion of business scale;

o technological leadership in the industry;

o increasing operational efficiency.

To the main external factors of globalization of competition relate:

o liberalization of world economic life;

o cross-country differences in the cost of production factors, investment opportunities, innovative development, tax systems;

o the increasing impact of business scale economies;

o technological advances in the transportation industry and downstream transportation costs.

The implications of globalization for competition are mixed. On the one hand, the world economy is being monopolized by transnational corporations, and on the other hand, the competitive forces of society are becoming more active. The power of local monopolies is weakened by international companies expanding into national markets. Experts come to the conclusion that currently competition is intensifying in both national and international and global markets.

There are a number factors influencing competition, namely:

o market size (the larger the market, the stronger the competitors);

o barriers to entry or exit from the market;

o market growth rates;

o level of standardization of goods;

o rapid updating of the product range, etc.

The level of competition is measured using the following indicators: concentration coefficient, Lind index, Herfind-la-Hirschman index, Bain coefficient, Tobin coefficient, Papandreou coefficient, Weintraub index, Lerner index (for more details see Kuzmin A.E., Gorbal N.I. Managing the international competitiveness of an enterprise: Textbook. - Lvov: Kompakt-LV, 2005. - 304 pp., pp. 18-22). Let's list some of them.

Concentration factor shows the percentage of sales of a certain number of enterprises from the total number. The concentration level for the four largest companies (0 and 4) is often used:

If the coefficient value approaches 1 (100%), then the market is characterized by a significant degree of monopolization, and if it approaches zero, then it can be considered competitive.

Herfindahl-Hirschman index characterizes not the market share controlled by a few largest companies, but the distribution of market power between all subjects of a certain market:

As market concentration spreads, the Herfindahl-Hirschman index increases, reaching a maximum value of 10,000 for a monopoly. A market in which 100 peer companies operate will have a coefficient value of 100, and a market in which 10 peer companies operate will have a coefficient value of 1000.

Tobin's coefficient evaluates the market value of a firm compared to the replacement cost of its assets:

Where R- the market value of the company's assets (measured by the market price of its shares);

WITH- replacement cost of the company's assets.

A ratio value greater than 1 is considered to indicate the existence or expectation of economic profit. It was revealed that enterprises with a high value of q, as a rule, have unique factors of production and produce unique goods, that is, they are characterized by monopoly rent. Enterprises with a low coefficient operate in competitive industries.

Lerner index - one of the tools for assessing monopoly power in the market:

The index value can vary from 0 to 1. The higher the index value, the greater the monopoly power of the enterprise.

Competition as an economic phenomenon has a number of advantages and disadvantages. Main advantages of competition are:

Introduction of new equipment, technologies, innovations;

Reducing prices for products and increasing their quality;

Expansion of product range;

Increased labor productivity;

Saving resources - material, human, financial;

Improvement of production management;

Development of information systems in companies;

Advanced training and retraining of workers. The experience of developed countries shows that competition, if it

properly directed, can activate not only the economy, but also most social processes in society. Thanks to its advantages, competition can serve not only the interests of individual market participants, but also society as a whole.

Main disadvantages of competition are:

Ruin of a significant number of small, medium and even some large producers;

Unemployment - through the displacement of some market participants by others;

Diversion of significant funds for non-productive needs, for example, advertising;

Distribution of income without taking into account ethical aspects;

Financial speculation and fraud;

Abuse of economic power by giant monopolies;

Crime, corruption.

In addition to the negative features that competition brings, it can generally be dishonest. Unfair competition - This is an uncivilized form of fighting competitors, preventing them from entering the industry. It is characteristic primarily of the stage of formation of market relations. In modern conditions, countries are fighting unfair competition with the help of government regulation and improving legislation.

Using unfair competition methods are: sharp price reductions in order to ruin rivals, pressure on resource suppliers and banks, falsification of information about a competitor’s products, undermining his reputation, theft of intellectual property, technological and industrial espionage, use of a competitor’s trademark and packaging, signing of monopolistic agreements, poaching of workers, tax evasion, sale of contraband goods, violation of laws, slander, blackmail and the like.

Thus, competition is the most important regulator of the market, but it is a contradictory phenomenon.

The classic model of the competitive environment is M. Porter’s concept of the five forces of industry competition (Chapter 2 outlines M. Porter’s main ideas in the field of competition, including international competition).

American economist Michael Porter (born 1947). is one of the leading modern experts in the field of research into the nature of competition. He graduated from Princeton University and received an MBA and PhD from Harvard University. Since 1973 he has been working at Harvard Business School.

M. Porter studies economic, including international competition. He developed the theory of competitive advantages of countries. Among the more than 15 books and 60 articles written by M. Porter, the following stand out:

Competitive Strategy: Techniques for Analyzing Industries and Competitors (1980);

Competitive Advantage: Creating and Sustaining Superior Performance (1985);

Competitive Advantage of Nations (1990).

In addition to his scientific and teaching activities, M. Porter worked as a consultant to the US government, and also advised the governments of countries such as India, New Zealand, Canada and Portugal. He has also acted as a business consultant for world-famous companies such as DuPont, Royal Dutch / Shell, AT&T, Procter & Gamble and others.

By comprehensively analyzing the causes of competition, Porter discovered five forces of competition that affect prices, costs of firms and consumer qualities of goods. He believes that the profitability of an industry and a company is determined not by the nature of the product or the level of technology used, but by the structure of the industry, that is, the main competitive forces present in it.

The five forces of competition according to M. Porter are (Fig. 1.2):

o competition in the industry;

o the threat of new competitors;

o the threat of the emergence of substitute products;

o bargaining power of suppliers;

o Bargaining power of consumers.

Rice. 1.2. M. Porter's Five Forces of Competition Model

Industry competition - This is competition between existing firms that produce similar products that are sold in the same markets.

Threat of new competitors lies in the possibility of easy entry of new firms into the industry. This intensifies competition, causes market redistribution, and, as a result, reduces prices and profitability. The ability of new firms to enter an industry depends on "barriers to entry." "Entry Barriers" - this is a set of economic, technical and organizational conditions for creating a new production. The level of “entry barriers” is determined by a number of factors:

o economies of scale, that is, reduction in unit costs as production volume increases. This forces potential competitors to either increase production volumes or not enter the industry at all;

o high production costs, which are not related to its scale. They can be based on the use of the latest technology, the best sources of raw materials, favorable location, government subsidies and the like;

o transition costs - one-time costs for an enterprise to switch from one supplier to another;

o significant capital investments - to enter the industry, significant costs are required for research and development (R&D), marketing, advertising, and the like;

o product differentiation - the presence of a large assortment of models, types, modifications of the same products. New competitors must look for unoccupied market segments, and this, given the high degree of differentiation and established consumer preferences, is quite difficult to do;

o high image of existing brands, which forces new firms to resort to significant expenses in order to gain their authority;

o access to distribution channels- It can be quite difficult for new firms to gain access to existing distribution channels, accustomed to working with old enterprises. Sometimes new firms are forced to create new distribution channels;

o government support for the industry, which may restrict entry into the industry through licensing, restricting access to sources of raw materials, technical requirements, environmental controls, and the like.

Threat of substitute products is the possibility of new products emerging that limit industry profitability and increase competition. Substitute goods- these are goods that perform the same function for the same group of consumers, but differ in production technology. The threat of substitute products is greater the more attractive the price-quality ratio is for buyers compared to products in the industry. There is a rule of price attractiveness: if the price of one of the goods increases, the demand for another product increases and is its substitute.

In practice, there is also illegal imitation and duplication of well-known products and brands. This increases competition, forcing the main manufacturer to be distracted by creating additional attributes of the product that make it difficult to copy, but at the same time increase the price.

Bargaining power of suppliers lies in their ability to raise prices for their products, manipulate their quality, and limit supply volumes. In this way they influence the production process and the profitability of customers.

The bargaining power of suppliers is most noticeable under the following conditions:

o the number of suppliers is small, they adhere to a single sales policy, competition between them is minimal;

o suppliers' products are differentiated or unique and it is too expensive or impossible for the buyer to change suppliers;

o purchasing is completely dependent on suppliers, because they are not able to produce the purchased products themselves;

o the products supplied play an important role in the final product;

o Suppliers do not consider their customers to be important clients.

Bargaining power of consumers lies in their ability to bargain with sellers, forcing them to reduce prices, improve product quality, provide special terms of payments, loans, etc.

The market power of consumers is most noticeable under the following conditions:

o there are few consumers, they are grouped into specific organizations and associations;

o consumers buy the company’s products in large volumes and put pressure on it under the threat of reduced purchases;

o the products purchased are undifferentiated or standard and consumers can easily change suppliers;

o consumer incomes are insignificant, their production is low-profit, and the goods purchased take up a significant part of the budget, making consumers price sensitive;

o consumers can independently produce purchased goods and become self-sufficient;

o consumers have access to complete information about the industry, which expands their choice and intensifies competition.

M. Porter's five forces of competition determine the profitability of an industry because they affect prices and costs of firms, as well as the amount of capital investment. The importance of each of the five forces is not the same for all industries, but depends on the structure of the industry. Each industry is unique, so there is no universal competitive strategy.

In the modern world market, supply of parts prevails over demand. The problem is not making a product, but selling it. In conditions when many suppliers simultaneously offer almost the same product, the consumer chooses the one that is capable of satisfying more needs per unit cost (price) and has a higher quality than competitors' products. That is, the consumer chooses the product that is the most competitive.

Competitiveness is the ability to compete in markets for goods and services.

International competitiveness is the ability to compete in international markets.

Global Competitiveness - this is the ability of a subject of international competition to function in the global economic environment.

There is competitiveness: of a product, an enterprise, an industry, an economy, a country (Fig. 1.3):

Rice. 1.3. Pyramid of competitiveness.

Competitiveness, including international, is based on competitive advantages.

Competitive advantages are unique assets owned by a company.

They help a firm win the competition and cannot be easily imitated by competitors.

Competitive advantages can be natural or acquired. Natural competitive advantages include climate, resources, economic-geographical location, etc. The main acquired competitive advantages are capital, workforce qualifications, technology, innovation, etc. Competitive advantages can be internal and external. Domestic are based on the company’s lower production costs compared to competitors, and external ones are based on the special qualities of the product that create value for the buyer.

Competitive advantages are also divided into absolute and comparative or relative. The theory of absolute advantages of A. Smith (Adam Smith, 1 723 - 1790) and the theory of comparative advantages of D. Ricardo (David Ricardo, 1772 - 1823) are well known (for more details, see Dakhno I. I. International Economics: Textbook. - K. : MAUP, 2006. - 248 p., p. 17).

Absolute competitive advantages have products with unique consumer values. They certainly overcome competition for a while and become monopolists in the market. The sources of uniqueness are: reputation for high quality, landmark company name (image), satisfaction of consumer requests and wishes, technology, innovation, service (delivery, warranty, credit, repair, replacement, etc.), skill and experience of employees, location of the enterprise etc.

Comparative competitive advantages are assessed by comparing characteristics that affect the economic efficiency of sales. An example would be “pair analysis”, which is used in marketing research. When conducting an analysis, the consumer is asked to compare pairs of competing products. He must make a choice by articulating competitive advantages. As a result, a product rating is formed. Most often, consumer goods are compared in this way.

The diversity of competitive advantages is also reflected in the fact that a product that has a price advantage in one geographic market may not have it in another. Conversely, if a product fails commercially in one market, it may succeed in another.

In the context of global competition, the strategy for creating competitive advantages is modified. It is based on a completely different paradigm and does not recognize geographical boundaries between countries. The existence of comparative advantages of even the highest rank becomes insufficient. Non-economic factors begin to play an active role, for example, non-economic restrictions and benefits that the state introduces in relation to its foreign competitors. A firm's competitive advantages in global competition are directly proportional to its advantages in its home country.

A new approach to the formation and implementation of competitive advantages in a complex geo-economic space does not fit into the framework of traditional principles and methods of management, but requires a new version of it - meta-management or management goal.

The main sources of competitive advantage in global industries are economies of scale in production, logistics, marketing, as well as global experience, mobility of production, and the ability to apply patented technology in several national markets.

In general, sources of competitive advantage can be:

o economic factors;

o regulatory legal acts;

o structural factors;

o technological factors;

o administrative measures;

o infrastructure development;

o awareness;

o geographical factors;

o demographic factors;

o non-legal factors.

(For more details, see Dolzhansky I.S., Zagornaya T.A. Competitiveness of an enterprise: Textbook. - M.: Center for Educational Literature, 2006. - 384 pp., pp. 36-43).

M. Porter believes that competition is not equilibrium, but constant change. Therefore, competitiveness is determined by the ability to constantly develop: first to achieve a competitive advantage, then to maintain this advantage, constantly improving the product, production technologies and other factors. This must be done so quickly that competitors cannot catch up and overtake. It is improvement and renewal as a continuous process that, according to M. Porter, allows us to create competitive advantages.

In the modern world, the defining competitive advantage that can bring super-profits is innovation.

Innovation is a new approach to production and sales.

Now there is a revaluation of values ​​- society is moving from an economic orientation to an innovative one, from the accumulation of material wealth to the accumulation of information. As a result of the creation and accumulation of new knowledge, society moved to a new state - knowledge became an independent productive force and a full-fledged factor of production. Already, the share of new knowledge in the GDP growth of developed countries is 70-85%.

In the 21st century, competitiveness is based primarily on scientific and technological progress, innovation and intellectualization of the main factors of production.

1

A definition of the category “global competition” is given and its place in the system of types of competition is revealed. It is shown that the origins of the category of global competition lie in the theory of spatial competition. Spatial competition is the competition of producers (sellers of goods) for a share of market space in conditions of imperfect competition by influencing the price. Global competition is competition that ignores state borders, i.e. Competitive actors come from outside, finding application objects in a given country. The formation of global competition has gone through several stages, following the development of the phenomenon of globalization itself. The criterion for these stages should be considered the development of the quantitative characteristics of a phenomenon into its qualitative changes. It is necessary to distinguish between the concepts of global competition and competition in the global (world) market. The difference between one and the other is based on the ability (impossibility) to create your own market space

global competition

spatial competition

1. Globalization of the world economy / ed. M. Osmovoy, A. Boychenko. - M.: INFRA-M., 2006. - P. 7.

2. Delyagin M. Russia in global competition. World crisis: general theory of globalization. - M.: INFRA-M, 2003. - P. 273.

3. Report on the state of the Russian cement market [Electronic resource]. - Access mode: http://www.rucem.ru/?fn_mode=fullnews&fn_id=2578 (access date: 04/18/2012).

4. Porter M. Competition: translated from English. : textbook allowance - M.: Publishing House "Williams", 2000. - P. 293-294.

5. Reut A., Chaika F. Europe is building an “iron curtain” for Russian capital // Izvestia. -2007. - July, 12.

6. Shikhalev S.L., Zobova L.L., Shabashev V.A. The theory of spatial competition as the basis for determining the space of the product market. - Kemerovo: Practice, 2007. - P. 54.

7. Hotelling H. Stabiliti in Competition // Economic Journal. - 1929. - Vol. XXXIX. - No. 39.

Introduction

New phenomena in the world economy, which are called “globalization,” naturally led to the emergence of new terms. These include, in particular, the concept of “global competition”. At the same time, the authors of many publications consider how subjects of the world market act in conditions of global competition, but do not define this phenomenon. Meanwhile, in order to understand what the algorithm of behavior of an individual subject or the country as a whole should be in changed conditions, one must have a clear understanding of the essence of the phenomenon itself.

What is hidden behind the term “global competition” - is it general, all-pervasive competition, “the struggle of all against all,” or competition in global markets, or competition between the main subjects of the global market? There is no single generally accepted point of view. There is no unambiguous answer to the question of when this term can be used, when global competition manifested itself in full. Can it be said that it appeared in connection with the activities of transnational companies? But in this case, most of the theses about the consequences of this competition, which can be reduced to two opposing groups, are also controversial - competition in the era of globalization is fading away or becoming more fierce. In other words, there are more questions than answers. At the same time, since the phenomenon of global competition is young, like the globalization of the economy itself, we can still talk about the trends that are currently present. Thus, the purpose of the study is to determine the category of “global competition” and its place in the system of forms of competition.

Since global competition is a priori associated with a certain transboundary nature of economic processes in the global economic space, we believe that answers to the questions posed must be sought in the theory of spatial competition.

Research methods

The term “spatial competition” contains a dichotomy, i.e. the presence of two components - space and competition. Each of them must be analyzed from the point of view of the basic postulates of economic theory. This seemingly simple economic premise initially encounters a significant difficulty. It consists in the fact that in economic theory the factor of space is rarely taken into account. When discussing the forms of competition in the classical sense, this phenomenon was often considered without regard to the spatial aspect, with the exception of cases where factors of spatial location could affect the prices of production factors. In economic theory, the factor of space was not considered as theoretically significant; it was believed that it represents an exogenous variable, which was not recognized as an integral characteristic of the functioning of the economic system.

The emergence in the late 20s of the twentieth century of the theory of monopolistic competition, which contains the concept of spatial differentiation, gave impetus to the emergence of studies of the spatial aspect of competition. And the practical problem of selling goods on markets stimulated the growth of these theoretical studies.

Research results and discussion

It is well known that the spatial competition model considers the effect that space has on pricing and general equilibrium when firms are dispersed and transportation prices play a significant role in the final price. We draw your attention to the fact that there are American and European traditions of studying spatial economics in general and spatial competition in particular. The European tradition includes research primarily by German scientists who laid the foundations of the theory. G. Hotelling was the first to introduce the term “spatial competition” into economics in 1929. He came to the conclusion that in monopolistic competition, a firm in a quasi-monopoly position creates its own market space. The consequence of this premise was the emergence of the term “spatial competition,” which refers to the possible behavior of a subject in a possible market space and the influence of space (that is, distance) on the price.

The American tradition has its origins in the works of J. Clark and F. Fetter (1924). Modern research is represented by the works of M. Porter, P. Krugman, J. Stigler.

By spatial competition we mean the competition of producers (sellers of goods) for a share of market space in conditions of imperfect competition by influencing the price.

The subjects of spatial competition are, as a rule, large enterprises separated in space (that is, located in different territorial markets). The object of spatial competition is the market share extended in space.

The question naturally arises about the place of spatial competition among traditional forms of competition. This type of competition can be considered as behavioral competition under conditions of imperfect competition. We believe that it is necessary to distinguish between “spatial competition” and “competition in the market space”. The criterion for this division is the possibility (or lack thereof) of competition subjects creating their own market space. Competition in the market space means that traditional forms and types of competition appear in a pre-formed (i.e., already existing market). As a result of spatial competition, a firm can expand (increase) its field of activity. Because, as you know, competition comes from outside.

Before the term “global competition” appeared, the concept of “territorial competition” was widely used, the essence of which was that two or more territories competed in foreign trade or there was a struggle for new markets or for the possession of resources. However, in order to understand the peculiarities of global competition, it is necessary to clearly understand the main characteristics of the globalization process, since in the definition of “global competition” the defining term is “global”. At the same time, we emphasize that competition must be considered as a process. Competition, understood as a process, is present as long as there are no arbitrary barriers to entry into the market.

M. Porter, describing the secrets of success of global companies, emphasizes that if an international company wants to achieve serious success, it will have to transform from a multilocal competitor (which allows individual branches to compete independently in various local markets) into a global organization that orients the entire global production system and market positions to combat competition. Thus, M. Porter emphasizes changes in both the nature of the activity of the subject of global competition and the very essence of this subject. However, M. Porter does not give a clear definition of global competition.

Such means of competition as reducing costs, improving quality and expanding the range of goods and services are becoming a kind of locomotive of globalization. American economist J. Garrett believes that growing competition in world trade is one of the three main mechanisms of globalization.

M. Delyagin believes that “global competition is a degenerate competition of the era of globalization, conducted under the dominance of global monopolies, in united markets by both economic and non-economic measures, which is tough, comprehensive and leads to the inevitable degradation of the weakest participants.” But this definition describes rather the nature of global competition than defines its essence. Some foreign researchers propose using a new term for modern competition - “hypercompetition”.

Please note that the development of theoretical aspects of global competition follows practice. There is not yet enough time to fully comprehend and explain these processes. Therefore, our conclusions are speculative. Although the trends can already be traced.

Based on the use of the basic principles of the theory of spatial competition, we can give the most general definition of global competition. In our opinion, global competition is competition that ignores state borders, i.e. Competitive actors come from outside, finding application objects in a given country.

Indeed, in modern conditions, the activities of relatively large corporations include the development of non-traditional (geographically speaking) markets for them, or attempts to penetrate markets already shared by other companies. On the other hand, you have to defend yourself from competitors coming from outside. Thus, a company must build its strategy both defensively and offensively.

According to the English economist D. Marshall, “before our eyes, the world order, which was characterized by the dominance of “national capitalisms” competing with each other, is becoming a thing of the past, and in its place is coming a new order that creates transnational capitalism.”

We believe that the formation of global competition went through several stages following the development of the phenomenon of globalization itself. The criterion for these stages should be considered the development of the quantitative characteristics of a phenomenon into its qualitative changes.

Rice. 1. The place of global competition in the system of forms of competition.

It is necessary to distinguish between the concepts of “global competition” and “competition in the global (world) market”. The difference between one and the other is based on the ability (impossibility) to create your own market space. Thus, we can clarify the definition of global competition - it is competition that ignores state borders and makes it possible to form its own market space for a specific entity.

A number of distinctive features of competition in the era of globalization can be identified. Firstly, the strengthening of the role of the state, expressed in supporting the activities of national companies in world markets. Thus, a special body is being created in Germany to counter Russian companies. All major EU countries impose restrictions on the import of a number of goods: agricultural products, steel, textiles, etc. The authorities of individual states within the European Union limit access to distribution networks even for each other. The main result of globalization is the expansion of competition from the firm level to the government level. Currently, the economic potential of a place depends much more on institutional parameters, which are largely shaped by government influence. We can conclude that global competition is also characterized as “institutional competition”. If countries want to attract mobile factors of production internationally, national governments must enter into institutional competition with foreign governments.

Secondly, supranational bodies also interfere in competition. Thus, the European Parliament prohibits foreign companies from buying up gas and electricity companies in Europe. It is clear that the underlying reason for this is to prevent the Russian Gazprom from entering the European market. At the same time, the Russian VTB Bank is ready to sell a stake in the aerospace corporation EADS, since the Europeans did not want to allow Russia to participate in the production of Airbuses. However, in most cases we are talking about strategically important industries. It can be concluded that hidden methods of protectionism are intensifying both at the national and supranational levels.

Thirdly, the manifestation of global competition has a clearly defined national connotation. By this thesis we mean that representatives of not every country participate in global competition.

Fourthly, since any competition is a process, global competition, like competition in general, tends to develop into its opposite - a monopoly. Today there is a process of creation, primarily by transnational companies, of oligopolistic structures. In countries with developed economies, one can observe the emergence in many (if not every) industries of two or three dominant companies that collide with each other (compete) in the markets of all countries.

The level of development and state of the competitive environment varies depending on the industry or market, which is associated with various operating conditions, the history and stage of development of the industry, the price situation, its changes and many other significant factors. This requires the development of special measures to develop competition in individual industries.

For example, the cement industry is among the world's fastest growing industries. Using this industry as an example, we can see how competitors create their own market space by penetrating the markets of other countries. Today Russia ranks fifth in the world in terms of cement production, behind China, India, the USA and Japan.

In March 2012, cement imports to Russia amounted to 195.7 thousand tons. Compared to the same period last year, the supply of imported cement more than doubled - the increase amounted to 102.1 thousand tons. The main contribution to this growth was made by an increase in cement supplies to Russia from Turkey - the most significant source of cement imports. In March 2012, 65.7 thousand tons of cement were imported from Turkey, which is 2.2 times higher than in the same month of the previous year. Thus, the growth rate of Turkish imports turned out to be almost the same as the growth rate of all cement imports to Russia over the same period from all countries. At the same time, Russia itself began to import cement not only from traditional partner countries in this industry (Ukraine), but also from China and Mongolia. The data presented well illustrate the thesis about the formation of their market area by subjects of global competition.

From the document on the obligations of the Russian Federation upon joining the WTO regarding access to the goods market, it follows that Russia will reduce duties on cement imports from 5 to 3%, i.e. almost 2 times. At the time of accession to the WTO, the rate of 5% can be maintained, but already in 2013 it should be reduced to 3%. It can be expected that a reduction in the duty from 5 to 3% will contribute to an increase in the supply of imported products. On the one hand, this will increase competition between Russian producers, on the other hand, it will increase competition between domestic and imported producers. In these conditions, indirect support of national producers from the state is necessary.

conclusions

One of the main features of economic globalization is its transborder nature, therefore the analysis of the category “global competition” should be associated with the theory of economic space. The methodology of spatial economics made it possible to define global competition as competition that ignores state borders, i.e. Competitive actors come from outside, finding application objects in a given country. This approach allows us to distinguish between global competition and competition in global markets and not equate them. One of the characteristic features of global competition is the strengthening of the role of the state in foreign economic activity, which in turn requires determining the level of government intervention.

Reviewers:

• Shabashev V.A., Doctor of Economics, Professor, Head of the Department of Economic Theory, Faculty of Economics, Kemerovo State University, Kemerovo.
• Surnin V.S., Doctor of Economics, Professor of the Department of Regional Economics, Faculty of Economics, Kemerovo State University, Kemerovo.

Bibliographic link

Zobova L.L., Orlova E.K. GLOBAL COMPETITION AS A VARIETY OF SPATIAL COMPETITION // Modern problems of science and education. – 2012. – No. 4.;
URL: http://science-education.ru/ru/article/view?id=6765 (access date: 01/15/2020). We bring to your attention magazines published by the publishing house "Academy of Natural Sciences"