Theoretical and Applied EconomicsReference:
Transformation of the key directions for increase in competitiveness of the sales entrepreneurial segment
Abstract.The object of this research is the sales entrepreneurial segment (SES) with network type of organization. The subject is the ways of improving the level of competitiveness of the SES. There is a downward trend in efficiency of the development strategy due to extensive growth through absorption and expansion onto regional markets (priority management of material resources). A hypothesis is offered on the strengthening of the role of intangible components as an element that allows increasing the competitiveness of the SES. Scientific literature and practice show lack of information on the interdependence of competitiveness and complex factors such as entrepreneurial talent, corporate culture, consumer preferences, etc.. The authors present grouping of intangible values by effects (dynamic, static) and impact of the intangible capital upon competitiveness of the SES in accordance with set key directions for increasing competitiveness, such as addition of locations, expansion onto regional markets (extensive development) and promotion of the trademark, image, personnel, marketing and innovation (intensive development). A conclusion is made that there is failure of strategic development of SES by absorption effect and extensive development, caused by a shift of priorities from the generally accepted and standard ways of increasing the level of competitiveness of the SES through efficient management of tangible resources towards management of the intangible resources.
Keywords: not material resources, scale economies, intensive development, extensive development, trading entrepreneur structures, marketing, staff, innovation, reputation, competitiveness
Article was received:22-03-2016
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