DIGITAL ECONOMY FACTORS AS A BASIS FOR MODERNIZING COMPETITIVE ANALYSIS IN STRATEGIC MANAGEMENT

Olga Lyshtva Kyiv National Economic University named after Vadym Hetman, 54/1, Beresteysky prospect, Kyiv, 03057, Ukraine https://orcid.org/0009-0003-1600-5041

Keywords: Digital Competition, Digital Economy, Competitive Analysis, Digital Markets, Network Effects, Digital Ecosystems, Strategic Analysis

Abstract

The article explores the transformations of competition in the context of economic digitalization and their impact on approaches to analyzing the competitive environment. The study finds that digital markets are characterized by specific structures, including multi-sidedness, the presence of network effects, significant economies of scale and scope, dominance of intangible assets, and a high pace of innovation. The article proves that these characteristics not only alter the conditions under which markets operate but also fundamentally change the nature of competition, shifting it from price rivalry to a contest for data, user bases, and ecosystem advantages. The study emphasizes the limitations of traditional competitive analysis tools in the digital environment, highlighting the need for their adaptation to account for non-price parameters, behavioral demand characteristics, and potential competition from innovators. Additionally, the study systematizes the key features of digital competition as factors driving the transformation of industry competitive landscapes. An approach to industry competitive analysis is refined by integrating the characteristics of digital competition with Porter’s Five Forces model, enabling consideration of how digitalization affects both the structure and intensity of competitive interactions among market participants. The research proposes a set of indicators to assess the influence of digital competition factors on industry analysis parameters, providing a methodological basis for further empirical studies of organizational competitive environments. The study is aimed at the further development of using competitive analysis results in strategic management in the context of the digital economy, taking into account changes in the sources of competitive advantage and the transformation of value creation chains.

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Author Biography

Olga Lyshtva, Kyiv National Economic University named after Vadym Hetman, 54/1, Beresteysky prospect, Kyiv, 03057, Ukraine

PhD Student

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