PRIVATE HIGHER EDUCATIONAL INSTITUTION
«ALFRED NOBEL UNIVERCITY DNIPROPETROVSK»
INNOVATION MANAGEMENT AND INERNATIONAL LOGISTIC DEPARTMENT
THE MASTER'S RESEARCH PAPER
FORMULATION OF THE ENTERPRISE DEVELOPMENT
STRATEGY
(BASED ON “LVS” SPE, LLC)
Evheniy Korobeynikov
MO-09, part-time studies
Scientific supervisor: Doctor of Economics, Full Professor,
Vladimir Evhenievich Momot
Language consultant: Svitlana Anatoliivna Samoilenko
Dnipropetrovsk
2015
CONTENTS
INTRODUCTION
CHAPTER 1 THE THEORETICAL FOUNDATIONS OF A CHOICE OF THE
MARKETING STRATEGY
1.1. Methods of analysis of the competitive situation on the market
1.2. The concept of marketing strategy and strategic decision-making model
1.3. Types of marketing strategies, their classification
CHAPTER 2 ANALYSIS OF FURNITURE MARKET OF UKRAINE
INVIROMENT OF “LVS” SPE , LLC
2.1. Organizational management structure of “LVS” SPE , LLC
2.2. Analysis of technical and economic indicators “LVS” SPE , LLC in 2012-2013
2.3. The Ukrainian furniture market in whole
2.3. The structure of demand for home furniture
2.5. Market share for companies depending on their values
CHAPTER 3 ECONOMIC ANALYSIS OF “LVS” SPE , LLC
3.1. SWOT-analysis of “LVS” SPE , LLC
3.2. BCG matrix of “LVS” SPE , LLC
3.3. The positioning of upholstered furniture “LVS” SPE , LLC
3.4. Market competitive map (using data of Market Department of “LVS” SPE , LLC)
CONCLUSIONS
Slide 2.
INTRODUCTION
Slide 3.
The Object of the research is “LVS” SPE (scientific production enterprise), LLC (Limited Liability
Company) and market environment where the company operates.
The Subject of the research is justification of the choosen strategy of the company in the process
of market planning of its activities and analysis of its competitive position.
The
Purpose
of the
research paper
is theoretical justification and development of methodical
recommendations regarding the choice of marketing strategy according to its competitive position.
Objectives of Master's research paper

are:
defining the place and role of strategy and competitive position of the company in process of
strategic market planning;

making the comparative analysis and the generalization of existing approaches for justification of
the choice of the enterprise strategy on the results of its competitive position analysis;

theoretical generalization of modern models of market strategies selection aiming to determine
system characteristics, causing assessment of the competitive position of the company;

generalization and making additions to the strategies and competitive position of the company in
the market;

elaboration of a plan of market activities in the context of chosen strategy of the factory and
making methodical and practical recommendations for its usage.
Slide 4.
CHAPTER 1. THE THEORETICAL FOUNDATIONS OF A CHOICE OF THE MARKETING STRATEGY
1.1. Methods of analysis of the competitive situation on the market
1.2. The concept of marketing strategy and strategic decision-making model
1.3. Types of marketing strategies, their classification
Distinctive features of enterprise marketing strategy:
1. The process of strategy development is not completed some instant action. Normally it should end the general
definition of vectors which will promote and ensure they can increase and improve the position on the market.
2. The current strategy should be used in tandem with the search method, while in developing policies. The role will
consist in finding strategy is to first, help concentrate attention on specific areas and opportunities; and secondly,
neutralize all other features that serve as incompatible with our strategy.
3. The need for strategic planning fall how promising vector of output the company into a profitable level.
4. In the process of developing the strategy it is not possible to predict all the opportunities that emerged in the design of
management measures. That is why you should use generalized not quite complete information about possible
alternatives.
5. Once while searching new alternatives are specific, we see the accumulation of more accurate information. In this case,
it may question the need for strategic choice in the beginning. This creates the conditions for good communication
strategy without using the principles of recoverability.
6. For the selection of measures are used as benchmarks and strategies can being said that this is one and the same, and
that the various components. Guidepost acts as a goal to which the company intends to reach, and the strategy is the
means in achieving the goal. Guideposts, in is case, are the highest level of decision-making.
7. Guideposts and strategy are interchangeable, as in certain periods of time and at different levels of the enterprise.
Certain performance parameters (market niche) in one timeframe perform the role of the guidepost, and in other time
will become its market strategy.
Slide 5.
CHAPTER 2 INTRODUSING THE EXAMPLE “LVS” SPE , LLC
Organizational management structure of “LVS” SPE , LLC
Director (CEO)
Deputy Director
for
technological
Affairs
Chief
engineer
Mechanical
engineer
The Quality
control
department
Engineer
manufacturing
equipment
Repair and tool
division
Deputy Director
for production
Technologist
Designer
Workshop
production
Deputy Director
for General
Affairs
Chief book-keper
Marketing
Department
Accountancy
Sales
Department
Planningeconomic
Department
Warehouse
Department
Transportati
on
(Logistic)
Department
Slide 6.
Analysis of technical and economic indicators “LVS” SPE , LLC in 2012-2013
Indicators
2011
net effective income, ths. UAH
2012
Deviations 2012/2011
ths. UAH
%
2013
Deviations 2013/2011
ths. UAH
%
13809
9297
-4512
-32,67
7073
-6736
-48,78
2212,8
2646
433,2
19,58
3382
1169,2
52,84
6,24
3,51
-2,73
-43,75
2,09
-4,15
-66,51
57,7
102,6
44,9
77,82
172,25
114,55
198,53
987
1003
16
1,62
1003
16
1,62
Production personnel, people
691
710
19
2,75
710
19
2,75
Unit weight of PP, %
70
70,2
0,2
0,29
70,2
0,2
0,29
19,98
13,09
-6,89
-34,48
9,96
-10,02
-50,15
5278,6
4970
-308,6
-5,85
4718
-560,6
-10,62
Capital productivity
2,6
1,8
-0,8
-30,77
1,5
-1,1
-42,31
Depreciation of fixed assets, %
62
64
2
3,23
66
4
6,45
The average annual cost of
finished goods inventory, ths.
UAH
The speed of circulation of
goods
The duration of one revolution,
days
The
average
number
of
employees, people
Productivity 1 employee, ths.
UAH
The average annual value of
fixed assets, ths. UAH
Slide 7.
CHAPTER 3 ANALYSIS OF FURNITURE MARKET OF UKRAINE
Ukrainian furniture market
10%
27%
63%
Special furniture
Office Furniture
Home furniture
The structure of demand for home
furniture
Market share for companies
depending on their values
30%
30%
20%
20%
30%
20%
15%
10%
0%
10%
5%
Large (220
ths.c.o.)
Middle (35 ths.c.o.)
5%
Small (less 25
ths.c.o.)
65%
CHAPTER 4 ECONOMIC ANALYSIS OF “LVS” SPE , LLC
SWOT-analysis of “LVS” SPE , LLC
Strengths:
1.
the availability of qualified personnel with extensive
experience;
2. personnel policy is aimed at finding competent
professionals;
3. a positive image of the company to its employees;
4. favorable democratic climate within the company;
5. the tendency of improving strategic planning;
6. favorable terms of raw material supply;
7. systematic development of new products;
8. creative advertising campaign;
9. consumer preferences orientation;
10. a large number of well-controlled distribution channels;
11. high quality of production.
Weaknesses:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Opportunities:
1.
2.
3.
4.
5.
6.
improving the quality of the product and as a result
strengthen market position;
increase sales;
qualitative improvement of the production line due to new
product;
the increase in profit;
the increased interest in the product from the professionals
and potential customers;
entering new markets (increase in the share of exports).
Slide 8.
high personnel turnover;
imperfect communication channels within the system;
inconsistency development strategy;
outdated production equipment;
irrational system of stock control;
low profitability due to the high cost;
inflexible pricing system;
internal production problems;
lack of resources for proper monitoring of the market;
low-budget advertising;
deficiencies in the system of economic planning.
Threats:
1.
2.
3.
4.
high competition;
rising prices for raw materials, components, other
resources;
too high costs;
using /copying of new developments by competitors (new
models) and selling them at lower prices.
Data and calculations for BCG matrix plotting
Markets growth
rate, %
Relative market
share of
Strategic
business unit
Market
share of
Strategic
business
unit, %
7600
91,5
3
11,13
1190
5100
104,1
0,87
22,98
2500
1105
11500
109,3
2,4
23,04
4
1503
625
7200
106,3
3,06
27,12
5
2271
1102
8400
101,1
1,98
30,64
6
3096
2720
10200
96,2
1,16
30,70
№
Strategic
business
unit
Company Sales
Volume,
ths.units
Sales of the leading
competitor, ths.units
Market Capacity
(size), ths.units
Interior accessories
1
1690
1182
The Cabinet furniture
2
1127
Bedroom furniture
3
Dining furniture
Furniture for living
room
Soft furniture
Product name
Slide 9.
BCG matrix of “LVS” SPE , LLC
Slide 10.
Assessment of the quality of the product and the credibility of competitors
*Score – the mark given on the basis of the analysis of the consumers reviews on the various trademarks.
Furniture Quality
Prown
Score*
4
Credibility of the company
Dival
Progress
Livs
Grand
4
3
2
4
Prown
4
Dival
Progress
Livs
Grand
3
3
3
4
The positioning of upholstered furniture “LVS” SPE , LLC
Slide 11.
Data for market competitor chart
The market share of the enterprise at Soft
The rate of increase of market share at
furniture market in 2013 (S) %
Soft furniture market (Ts) %
«LVS»
31,8
98,6
«Livs»
23,1
103,4
«Prown»
11,9
102,3
«Progress»
33,2
99,2
The company:
3%
Furniture sales by type
Corner sofa
12%
29%
Sofa
43%
13%
Chair&Softchairs
Soft group
furniture
Bed
Structure of the furniture purchasing by type
Conclusions
• the implementation of the strategy of marketing mix
modifications
• more effective advertising company
• offering customers perfected services
• using of methods of price competition
• searching for additional markets for new products and
new customers
Thank you for your
attention!