Peculiarities of the formation of competitive advantages of agricultural enterprises

Abstract

For agricultural enterprises, as well as other subjects of entrepreneurial activity, the acquisition of competitive advantages connected with lower costs and high quality of products becomes actual one.

In this research, we have used the method that allows establishing the prevailing approaches and the main results of the formation of competitive advantages of agricultural enterprises. It is based on the analytical grouping of a set of enterprises. They can serve the criteria of competitive advantages or competitiveness of economic entities.

It is revealed that the majority of agricultural enterprises of the region under study can see only cost savings in the theory of low cost savings and. It can lead to a decrease in the productivity of land and animals. The effect in the form of lower cost is a short-term one and it does not ensure the formation of a stable competitive advantage. A strategy, which is focused on obtaining a competitive advantage in the form of a higher selling price, applies a limited range of agricultural producers. The approaches, which are the basis for the strategies of large enterprises that can attract significant financial resources into production, are characterised. They focus on increasing their shares in the markets of agricultural products and resources. The often show in the report losses from the main activities.