Analysis of competitive strategies of TNCs in conditions of globalization of economic activity

Abstract

Introduction.Transnational corporations, which make a diverse impact on the functioning of the world economy and state of economic entities and subsystems, take a special place in the modern global market.

With the globalization of TNCs operations the link between competitive advantages of the entire corporation and competitiveness of the country of the parent company becomes weaker. TNCs are increasingly using global competitive advantages. Nowadays the strategy of transnational corporations is characterized by the desire to form the networks of inter-enterprise relations of regional or global scale. The scientific researches, development, production, distribution and sales are ingrated  within these relations.

The purpose of this paper is to analyze the main strategies of TNCs and alternative ways of corporation’s behavior, to identify the key tools for improving the competitiveness of TNCs.

Results. Strategic development of enterprise in  the modern world is multivariate one. It is definitely aimed at the successful overcoming of uncertainty of the business environment, the maximum reduce of the costs through aggravation of competition, the increase of cost of innovation and the achievement of operational flexibility. In order to enter the international markets the national company should be guided by strategies of creating competitive advantages.The presence of TNCs in domestic markets creates additional incentive for the growth of products and the increase of the quality of products and services of domestic companies. Simultaneously is appears the possibility to use the experience, technology and sales strategy, in particular those that have been tested in other countries.