REASONING OF STRATEGIES OF AGRARIAN SECTOR COMPANIES ON THE BIOENERGY MARKET


Keywords: marketing strategy, enterprise, growth, diversification, bioenergy market.

Abstract

Topicality. As a result of the transformational changes in the agrarian sector of the economy, the market orientation of the agrarian enterprises, which have significant potential for diversification of activities and improvement of the provision of resources on the basis of efficient waste management, is intensified. However, a significant part of such enterprises do not pay sufficient attention to these issues, thus reducing the opportunities for bioenergy development. The problem of choosing a strategy by enterprises in the agrarian sector is relevant due to the need to attract additional resources in the process of growth or diversification of activities, as well as new opportunities for development and ecologization.
Aim and tasks. The purpose of the article is to develop theoretical, methodological and practical propositions, which should justify the tools of choice of marketing strategies by enterprises of agrarian sphere on the bioenergy market. The objectives of the article are, first, clarification of the essence of the category "strategy" and their classification; secondly, identification of factors influencing the choice of agribusiness in the growth or diversification strategy; and third, the definition of the stages of selection of such a strategy on the bioenergy market.
Research results. Marketing strategy is a key strategy of the enterprise; this is the main direction of development, the market orientation, the generalized model of marketing actions, which allows the company to meet the needs of consumers as much as possible, achieve marketing goals and optimally allocate resources in the process of development of markets. General strategies of enterprises are divided into strategies of growth, stabilization (maintenance of competitive advantages) and reduction. The growth strategy is typical for those businesses whose business is at an initial stage or is rapidly developing. This strategy involves the selection of target segments, increased investment, research and innovation. The natural-climatic, economic, technological and market factors must be taken into account in choosing the growth strategy and / or the strategy of diversifying agricultural enterprises in the bioenergy market. The order of selecting the strategy for the Ansoff matrix is standard. However, it should be borne in mind that in the process of functioning of agricultural enterprises of the branches of plant growing and livestock production waste (shrivelled remnants, husk, manure, etc.) are formed. The presence of such waste in sufficient quantities forms the bionergic potential of the enterprise, which in itself may be the reason for choosing a diversification strategy with access to bioenergy markets. The choice of growth strategy or diversification by agroformations in the bioenergy market should be completed by combining the results of the analysis into one table and assessing the ratio as a whole, describing the opportunities and risks of agri-formation in the implementation of each strategy, selecting the strategy that scored the highest score and then carrying out its verification for using PEST and SWOT analysis tools.
Conclusion. The main strategies for the development of agricultural enterprises include growth and diversification strategies. The choice of these strategies in the context of the rapid development of bioenergy markets is based on the consideration of nature&climate, technological, economic and market factors. The algorithm for selecting growth or diversification strategy by agrarian enterprises is standard and based on the Ansoff matrix. However, the sufficient bionergic potential of the enterprise may be the reason for choosing a diversification strategy with access to bioenergy markets. The choice of agribusiness strategy should be completed by verification. The prospects for future research in the development of agrarian sector strategy strategies in the bioenergy market are linked with the specification of strategies based on market research in domestic and foreign markets, the development of investment projects, risk assessment.

Author Biography

Y.S. LARINA

Dr.Sc. (Economics), Prof.
National University of Life and Environmental Sciences of Ukraine
Heroiv Oborony, 11, Kyiv, Ukraine

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Published
2019-06-20
How to Cite
LARINA, Y. (2019). REASONING OF STRATEGIES OF AGRARIAN SECTOR COMPANIES ON THE BIOENERGY MARKET. Economic Innovations, 21(2(71), 59-69. https://doi.org/https://doi.org/10.31520/ei.2019.21.2(71).59-69