The justification of the diversification activities of the retail enterprise

Lyisuk Alisa
master`s student, Odesa national economic University. E-mail:alisalisyuk@gmail.com

Markitan Alexander
Candidate of Еconomic Sciences, Assistant Professor, Odesa national economic university. E-mail:markitanas@ukr.net

Cite this article:

Lyisuk A., Markitan A., (2018) The justification of the diversification activities of the retail enterprise. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 8(260), pp. 84-97.

Abstract

The article examine sand analyzes the essence of the concept of “diversification” as a direction of strategic development of trade business. The paper classifies diversification of trade business according to modern conditions that are manifested. Considered the academic-economist on the definition of the strategy of enterprises. The actual vision for defining the strategy of diversification in retail trade is provided. The possible directions of diversification in retail trade are determined. The article determines problems and the main ways of effective enterprise management in fierce competition on the example of existing business. The opportunity to maximize enterprise profits using diversification strategy has been analyzed. The direction of diversification of fields of activity on the example of the retail network "Allo" is grounded. The possible directions of diversification of the enterprise dealing with gadgets trade are listed. It was determined that the most expedient direction of diversification could be involved in the projects "smart home". The evidence of the commercial feasibility of such a diversification direction is presented. As the telephony, home appliances and portable equipment market is already saturated, the company is able to capture new market segments that have already found their place in developed countries and offer a wide range of products and services. On the example of the retail company Allo Ltd., a number of measures were developed to improve the efficiency of work with consumers, expand the range and consolidate the leading competitive positions in the market, taking into account the diversification of business activities.

Keywords

strategy, diversification, growth strategy, trade business, expansion diversification risks, effective enterprise.

JEL classification: D410

UD classification: 658.138:3

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