THE MAIN THREATS TO SUSTAINABLE COMPETITIVENESS OF COMPANIES

The article deals with the phenomenon of sustainable competitiveness of companies. Within the last 30 years many firms that used to be market leaders stopped existing (E.g. Nokia). However, the fact that there are successful companies which are over 100 years old and which are still leading players in their industries (E.g. Ford, Boeing, IBM, Pfizer, Aldi) leads to conclusion that this tendency is disputable. Based on the experience of 30 companies in 5 industries, the most typical bifurcation points have been identified; factors generating the bifurcation states have been defined and classified. The following internal factors have been highlighted: the growth crisis, the crisis of leadership change, the crisis of reform, the crisis of diversification, the investment crisis, the innovation crisis, the reputation crisis. Among external factors political, technological, economic and natural factors have been emphasized. The study concludes that the company’s loss of its dominant position in the established market hierarchy is the consequence of joint actions of internal and external factors. The most dangerous combinations of external and internal factors that may lead to the loss of sustainable competitiveness have been identified. These are diversification during the emergence of basic and disruptive innovations; innovations and/or investments during changes in political conditions. The problem of sustainable competitiveness lies at the intersection of management and economic sciences highlighting the need to combine methodologies of several theories: the neoclassical economic theory (the theory of competition), the firm theory (the entrepreneurial firm theory, the theory of organizations, strategic management and marketing), the new institutional theory (the theory of transaction costs and economic theory of contracts), the theory of economic sociology (the theory of social fields).

sustainable competitiveness, bifurcation point, market field, growth crisis, crisis of reform, diversification crisis, investment crisis, innovation crisis, reputation crisis, loss of sustainable competitiveness.

Ustyuzhanin V. L. The main threats to sustainable competitiveness of companies. Business. Education. Law, 2020, no. 2, pp. 120–124. DOI: 10.25683/VOLBI.2020.51.220.