““Increase of the competitiveness of the enterprise by Increase of the competitiveness of the enterprise by identifying and strengthening competitive advantagesidentifying and strengthening competitive advantages””

Student: Student: Vladimir SlakvaVladimir SlakvaМГ – 09-магМГ – 09-маг

Scientific supervisor PHD., Associate Professor M.M. FesunScientific supervisor PHD., Associate Professor M.M. Fesun

Language consultant Senior Lecturer O.M. GlinskaLanguage consultant Senior Lecturer O.M. Glinska

PPlanlan► Section 1. Theoretical partSection 1. Theoretical part. . The object and subject The object and subject

of study, types of competitiveness and ways of its of study, types of competitiveness and ways of its improvement.improvement.

► Section 2. Analytical part. The characteristics of the Section 2. Analytical part. The characteristics of the enterprise, market share and SWOT analysis.enterprise, market share and SWOT analysis.

► Section 3. Ways to enhance the competitiveness Section 3. Ways to enhance the competitiveness and measures to be taken to improve the and measures to be taken to improve the performance of the company and increase of its performance of the company and increase of its competitiveness.competitiveness.

AA) The topicality of the diploma paper is the effective use of various manufacturing ) The topicality of the diploma paper is the effective use of various manufacturing resourcesresources,, including raw materials logistic including raw materials logistic,, transportation transportation,, production planning and production planning and exportexport,, as well as advantages and as well as advantages and business business planningplanning at the enterprise PLC “Polifab at the enterprise PLC “Polifab Ukraine”. The main purpose is to increase of the competitiveness of the enterprise by Ukraine”. The main purpose is to increase of the competitiveness of the enterprise by identifying and strengthening competitive advantages.identifying and strengthening competitive advantages.

BB) The subject of the investigation is PLC “Polifarb Ukraine”) The subject of the investigation is PLC “Polifarb Ukraine”,, the main activity of which the main activity of which is the manufacturing of painting products such as facades and emulsion. Their selling is the manufacturing of painting products such as facades and emulsion. Their selling in Ukrainein Ukraine, , as well as exporting to Moldova and other foreign countries.as well as exporting to Moldova and other foreign countries.

CC) The purposes of the diploma investigation are to increase the competitiveness of the ) The purposes of the diploma investigation are to increase the competitiveness of the enterprise by identifying and strengthening competitive advantagesenterprise by identifying and strengthening competitive advantages, , planning of planning of rrawaw materialsmaterials,, financial financial,, logistic sector and human recourses in order to achieve a higher logistic sector and human recourses in order to achieve a higher level of the competitiveness of the enterprise.level of the competitiveness of the enterprise.

DD) The methods of investigation such as analytical) The methods of investigation such as analytical,, visual-graphic visual-graphic,, economic- economic-mathematicalmathematical,, method of system analysis method of system analysis,, method of induction and deduction are used method of induction and deduction are used in this work. in this work.

Characteristics of the company “Polyfarb Ukraine”Characteristics of the company “Polyfarb Ukraine” The Paint factory PLC "PolThe Paint factory PLC "Poliifarb Ukraine", was farb Ukraine", was founded in 2003 -it is the most modern high-tech founded in 2003 -it is the most modern high-tech manufacturer of paint products in Ukraine.manufacturer of paint products in Ukraine.

Modern equipment from leading manufacturers of Western Europe allow paint materials with the trademark "Polyfarb" successfully compete with foreign counterparts.

Raw materials of such countries as Poland, France, Holland, Germany and Switzerland are used for production

competitiveness and ways of its improvement:competitiveness and ways of its improvement:

► Competitiveness includes the ability to enhance business efficiency, which is the basis of profitability. Competitiveness includes the ability to enhance business efficiency, which is the basis of profitability. In In terms of efficiency improvement, the most important things are development of productivity, labour force terms of efficiency improvement, the most important things are development of productivity, labour force costs, the level of the used technology, utilization of capacity and the flexibility of production system.costs, the level of the used technology, utilization of capacity and the flexibility of production system.

► Strategy formation and the ability of its implementation have become the essential features of competitive Strategy formation and the ability of its implementation have become the essential features of competitive businesses in the last two decades, being the fundamental condition and means of adaptation to the businesses in the last two decades, being the fundamental condition and means of adaptation to the dynamically changing environment.dynamically changing environment.

► Yet competition for profits goes beyond established industry rivals to include four other competitive forces Yet competition for profits goes beyond established industry rivals to include four other competitive forces as well: customers, suppliers, potential entrants, and substitute products. The extended rivalry that results as well: customers, suppliers, potential entrants, and substitute products. The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive interaction within from all five forces defines an industry’s structure and shapes the nature of competitive interaction within an industry.an industry.

► The strongest competitive forces determine the profitability of an industry and become the most important The strongest competitive forces determine the profitability of an industry and become the most important to strategy formulation. to strategy formulation.

4,5

9,2

5,0

3,74,1

3,94,8

3,3

6,0

4,7

49,2 16,1

4,1

4,324,5

10,0

16,3

8,434,84,7

5,5

3,7 12,2

32,7

6,6

4,0

4,3

8,6

7,1

25,4

Estimation of the annual consumption of paints products (thousands tons ) in 2013

Общий объем рынка составляет:

166,6 thousand. tons

3,6 kilograms for one person a year

Regional Sales and Market Share (second half of 2013)

192,3

547,8

370,4352,2

270,5

203,4

153,7

613,0

29,8

767,9

393,3

17,6

336,5

365,0

102,9

481,754,1

260,869,0

26,0

4,6 140,6

7,6

131,6

02436,3

674,7

438,8847,1

1495,4sum : 6021,2 тонн

9,9%5,3%

2,5%

11,8%

5,2%

Delivery in the rigions, tons

Market share in the region

export: 128,9

Major brands inWestern Ukraine

Ukrainian manufacturers foreign producers

regionPOLIFARB

SHEHKA

ZIP

ELAKS

POLISAN

DUFA

KOMPOSI

T

KOLORI

T

OLENI

KOV

DNEPRCONTACT

UNO

ROLAKS

PANAFARB  

Sni ezka

Be l i

nka

Bol I x

Caparol

Ceres I t

Sadol i

n

Ma l farb

Ti

kkyr I l l

a

Vinnitsa                                            

Rivne                                            

Volyn                                            

Ivano Frankivsk                                            

Chernivtsi                                            

Lviv                                            

zakarpatie                                            

Ternopil                                            

Sales structure (Sales structure (thousandthousand tons tons in in 2013 2013 year)year)

Snehka 18 200

Zip 9 000

Polifarb 4 000

Dufa 2 000

Elaks 1 900

Polisan 1 100

Oleynikov 520

Rolaks 450

Colorit 430

Others 6 390

Total sum 44 022

Colorit1%

Dufa5%

Polisan3%

Elaks4%

Rolaks1%

Oleynikov1%

Polifarb9%

zip20%

Snegka41%

others15%

Main brands: Main brands:

Group 1 - 75% of the market: Snegka 41%, Zip 20%, Polifarb 9%, Dufa 5% Group 1 - 75% of the market: Snegka 41%, Zip 20%, Polifarb 9%, Dufa 5%

Group 2 - 10% of the market: Elaks, Polisan, Rolaks, Oleynikov, Colorit.Group 2 - 10% of the market: Elaks, Polisan, Rolaks, Oleynikov, Colorit.

Group 3 - 15% import market, etc.Group 3 - 15% import market, etc.

Implementation of Implementation of the regional the regional sales plansales plan (2013) (2013)

    In fact Plan

%

№ Region 2009 2010 2011 2012 2013  

               

1 Rivne 662 481 687 400  500 50%

2 Volyn 0 344 542 725  752 112%

3 DIV 0 0 260 400  400  80% 

4 Ivano Frankivsk 76 83 113 264 303 130%

5 Zakarpatie 178 184 287 363 419 72%

6 Ternopil 235 301 392 414 490 86%

7 Lviv 331 420 483 587 812 90%

8 Khmelnitsky 52 58 18 11 84 127%

9 Chernivtsi 84 98 130 197 252 65%

10 Vinnitsa 398 434 425  319 270 70%

Total sum 20002000 24132413 33333333 39003900 41004100 95%

Dynamics of Dynamics of SSalesales

1200

1200

1260 2040 1400

2500

0

500

1000

1500

2000

2500

3000

2011, 2012, 2013

Dynamics of sales according to the product evaluationDynamics of sales according to the product evaluation

550330200

912 13201520

165013001830

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

blue economyyellow standardbrown luxury

2011 2012 2013

Polygon competitivenessPolygon competitiveness

0

2

4

6

8price

quality

brand recognitionpackaging

asso

rtmen

t

PolifarbDufaSnegkaColorit

SWOT analysis:SWOT analysis:► Strengths: Better pricing than the competition, a wide range of quality products, highly qualified staff, Strengths: Better pricing than the competition, a wide range of quality products, highly qualified staff,

scientific research and development.scientific research and development.

► Weaknesses: Distance location of the raw material suppliers, not used all the power of the plant.Weaknesses: Distance location of the raw material suppliers, not used all the power of the plant.

► Opportunities: Achieve a high degree of competitiveness of the enterprise, growth in sales and the Opportunities: Achieve a high degree of competitiveness of the enterprise, growth in sales and the effectiveness of advertising campaigns, expanding the share of the international market, improving effectiveness of advertising campaigns, expanding the share of the international market, improving productivity of the enterprise, opportunity for growth and extension of the range of products.productivity of the enterprise, opportunity for growth and extension of the range of products.

► Threats: Reducing the release of goods, failure by the company of its obligations, reduction of the money Threats: Reducing the release of goods, failure by the company of its obligations, reduction of the money supply, threat of late delivery of the product to consumers.supply, threat of late delivery of the product to consumers.

Program to improve performance:Program to improve performance:

► improve the performance of the available improve the performance of the available production resourcesproduction resources; (; (changes in the changes in the organization of productionorganization of production))

► create the necessary administrative and create the necessary administrative and organizational conditions for the successful organizational conditions for the successful implementation of new technology, and on this implementation of new technology, and on this basis to ensure long-term sustainability of basis to ensure long-term sustainability of productivity growthproductivity growth. .

Steps to Success:

► PPromotromotee thethe quality standard quality standardss;;

► Create clean technology (increasing technological competitive advantage);Create clean technology (increasing technological competitive advantage);

► Increase the firm's costs for personnel training and retraining.Increase the firm's costs for personnel training and retraining.

Export to the foreign market, diversification or expansion of foreign Export to the foreign market, diversification or expansion of foreign markets "Moldova"markets "Moldova"

► Main competitors:Main competitors:

“ “Snejka”,Snejka”, ”Zip”,”Zip”, ”Dufa””Dufa”,, ”Colorit””Colorit”, , “Caparol”.“Caparol”.

Contract with "Colors Group" -Contract with "Colors Group" -wholesaler of Moldova market.wholesaler of Moldova market.

Deliveries of production in Deliveries of production in specialized stores with an specialized stores with an exclusive contract to sell!exclusive contract to sell!

PPositive aspects ositive aspects of Moldova market:of Moldova market:

► "Polyfarb Ukraine" produces colorants machines that use only "Polyfarb Ukraine" produces colorants machines that use only Polifarb Ukraine colorants. Polifarb Ukraine colorants.

► ““Farba group” provides transportation and warehousing.Farba group” provides transportation and warehousing.

► Good value for money.Good value for money.

► OOptimal shipmentptimal shipment 2020 ttonsons..

Colorants system in Western UkraineColorants system in Western Ukraine

How march different firm have colorants machine: quantity

Polifarb 84

Triora 67

Ceresit 49

Tikkyrilla 31

Caparol 20

Sadolin 16

Bolix 10

DUFA 8

Colorants system in different regions region quantity

Vinnytsa 28

RivneRivne 46

Volyn 32

Ivano Frankivsk 34

Chernivtsi 35

Lviv 51

Zakarpatie 73

Ternopil 32

Ceresit14%

Tikkyrilla9%

Caparol6%

Sadolin5%

Triora19%

others23%

Polifarb24%

Colorants system - a new step of the competitivenessColorants system - a new step of the competitiveness

► Polyfarb holds a leading position.Polyfarb holds a leading position.

► VVery good balanceery good balance:: priceprice,, quality and assortment. quality and assortment.

► The most effective use of equipment.The most effective use of equipment.

► Increase of the outlet attractiveness.Increase of the outlet attractiveness.

► SSales increase byales increase by 20-30%.20-30%.

► Provides new opportunities to attract additional customers.Provides new opportunities to attract additional customers.

► Additional service to customers.Additional service to customers.

Thank you for your attention!Thank you for your attention!