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

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  • Andreev, Andrei

    (Russian Presidential Academy of National Economy and Public Administration)

Abstract

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

Suggested Citation

  • Andreev, Andrei, 2014. "Hold of the competitive advantages of dairy enterprises at the local level," Published Papers and1, Russian Presidential Academy of National Economy and Public Administration.
    • Handle: RePEc:rnp:ppaper:and1
    Note: Published in "Izvestiya Saratovskogo universiteta. New series",
    as

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    References listed on IDEAS

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