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Risks of Basic Competitive Strategies
Razumova H. V., Matiushenko D. D.

Razumova, Hanna V., and Matiushenko, Diana D. (2025) “Risks of Basic Competitive Strategies.” Business Inform 9:426–433.
https://doi.org/10.32983/2222-4459-2025-9-426-433

Section: Management and Marketing

UDC 339.137

Abstract:
The aim of this article is to analyze the risks of basic competitive strategies of enterprises and to identify ways to minimize them to improve the efficiency of strategic management. The object of the study is the competitive strategies of enterprises, which serve as the primary tool for maintaining a stable market position. In the context of globalization and increasing competition, enterprises are compelled to adapt their business approaches by implementing strategies that enable efficient use of their resources and creation of unique competitive advantages. The choice of an appropriate strategy determines the long-term stability of the enterprise, its profitability, and opportunities for further growth. However, the implementation of any strategy carries risks that may negatively impact the achievement of business goals. This article analyzes the risks of basic competitive strategies (cost leadership, differentiation, focusing). A comprehensive risk analysis of these strategies will enable enterprises to develop efficient mechanisms for mitigating threats and enhancing their competitiveness in a dynamic market environment. The study identified the main risks of each strategy, such as price reductions by competitors, limited opportunities for differentiation, and changes in consumer preferences, among others. Recommendations for minimizing these risks are provided, including the need for continuous market monitoring, investment in innovation, and brand development. Examples of successful application of each strategy by well-known companies are presented. The scientific significance of the work lies in deepening the understanding of risks associated with fundamental competitive strategies, as well as in formulating practical recommendations for enterprises on managing these risks. The research findings can be used to improve the efficiency of strategic management and the competitiveness of enterprises.

Keywords: strategic management, strategy, competition, competitive strategies, market, risk.

Tabl.: 3. Bibl.: 9.

Razumova Hanna V. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of Management and Marketing, Pryazovskyi State Technical University (29 Hoholia Str., Dnipro, 49044, Ukraine)
Email: [email protected]
Matiushenko Diana D. – Masters Student, Pryazovskyi State Technical University (29 Hoholia Str., Dnipro, 49044, Ukraine)
Email: [email protected]

List of references in article

Francis, A. Porter’s generic strategies – focus strategy. https://www.mbaknol.com/strategic-management/focus-strategy
Ihnatenko, M. M., Marmul, L. O., & Romaniuk, I. A. (2023). Rozvytok konkurentnykh stratehii pidpryiemstv v umovakh hlobalizatsii rynkiv [Development of competitive strategies of enterprises in the context of market globalization]. Ekonomichnyi visnyk universytetu, (57), 45–51. https://doi.org/10.31470/2306-546X-2023-57-45-51
Kuznetsova, I. O., & Horbatiuk, V. V. (2020). Suchasni pidkhody do formuvannia konkurentnoi stratehii pidpryiemstva [Modern approaches to the formation of a competitive strategy of an enterprise]. Visnyk sotsialno-ekonomichnykh doslidzhen, (3–4), 109–120. https://doi.org/10.33987/vsed.3-4(74-75).2020.109-120
MasterClass. (2022, May 10). Focus strategy: 3 examples of focus strategies. MasterClass. https://www.masterclass.com/articles/focus-strategy
Osovska, H. V., & Barbarich, T. M. (2010). Formuvannia stratehii konkurentsii pidpryiemstv [Formation of enterprise competition strategy]. Ahrosvit, (21), 32–35. http://www.agrosvit.info/pdf/21_2010/8.pdf
Porter, M. (2020). Konkurentna stratehiia. Tekhniky analizu haluzei i konkurentiv [Competitive strategy. Techniques for analyzing industries and competitors]. Kyiv: Nash format.
Razumova, H. V., & Kurnosova, O. I. (2024). Upravlinnia ryzykamy investytsiinoi diialnosti v umovakh tsyfrovoi transformatsii [Risk management of investment activity in the context of digital transformation]. Biznes Inform, (3), 96–101. https://doi.org/10.32983/2222-4459-2024-3-96-101
Razumova, H. V., & Oskoma, O. V. (2024). Analiz ta otsiniuvannia finansovykh ryzykiv pidpryiemstva [Analysis and assessment of financial risks of the enterprise]. Visnyk DNDISE Ministerstva yustytsii Ukrainy. Seriia «Ekonomichni nauky», (2), 27–34. https://doi.org/10.32782/2708-1834/2024-10.4
Shchurko, U. V. (2018). Pidkhody do formuvannia ta realizatsii konkurentnykh stratehii [Approaches to the formation and implementation of competitive strategies]. Ekonomika i suspilstvo, (17), 402–412. https://doi.org/10.32782/2524-0072/2018-17-60

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