Theoretical foundations of competitive strategy and competitiveness of the enterprise

Abstract

In the dynamic and competitive business environment of today, enterprises must develop and implement effective competitive strategies to achieve sustainable growth and success. The concept of competitive strategy, popularized by Michael Porter, emphasizes the importance of creating a unique and sustainable position within an industry to outperform rivals and achieve a competitive advantage. Competitive strategy is based on a deep understanding of the industry in which the enterprise operates, as well as an analysis of the external environment, including competitors, customers, suppliers, and other stakeholders. By understanding these factors, enterprises can identify opportunities and threats and develop strategies to capitalize on strengths and mitigate weaknesses. One of the key theoretical foundations of competitive strategy is the Five Forces framework developed by Michael Porter. This framework identifies five key forces that shape the competitive intensity and attractiveness of an industry: the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products or services, and the intensity of competitive rivalry.