A STUDY OF THE COMPETITIVE ADVANTAGES OF CEMENT INDUSTRY MANUFACTURERS IN CONDITIONS OF ECONOMIC INSTABILITY

Abstract

The purpose of the article is to research and analyze the competitive advantages of cement industry manufacturers using the «Porter's Five Forces» model, taking into account the current economic and social trends that affect the formation of competitive advantages. Special attention is paid to the integration into the model of «Porter's five forces» of an additional «force» – the influence of the state, which is essential for understanding the competitive environment in Ukraine and other countries with similar economic conditions. The study will contribute to a deeper understanding of the competitive environment in the cement industry, which will allow manufacturers to more effectively formulate and implement competitive strategies, ensuring their sustainable growth and successful operations in the market. This approach also makes it possible to more objectively assess the level of profitability, opportunities and risks in the field of cement production, as well as to adapt the competitive strategies of manufacturers to the realities of a specific state. The conducted analysis emphasizes the importance of state influence and the need for additional theoretical and practical developments for the formation of competitive advantages of enterprises in modern conditions. The study of the factors influencing the intensity of competition in the cement industry allowed us to establish that the appearance of new domestic producers on the cement market of Ukraine is unlikely, but there is a possibility of importing cement from Turkey. Today, these processes are somewhat delayed due to the introduction of import duties by Ukraine. Since the main influence on the cost is the cost of energy carriers and the cost of delivery of cement and raw materials, in order to reduce the influence of suppliers, it is worth using own wagons, which allows to reduce the cost of transportation by more than 40%. Buyers of cement have little influence on the intensity of competition, since the main buyers are enterprises that produce concrete, reinforced concrete, aerated concrete products and are sensitive to the quality of cement and the rhythm of supply. A decrease in the supply of cement on the market significantly reduces the influence of buyers. There are no substitute products for cement yet, and there are only developments in this direction, so there is no influence from this force. The number of competitors in the domestic cement market is not significant, there is a real market leader.