Identification of the characteristics of the competitive environment of grain producers` target markets

  • Valerii Danylenko Kharkiv Petro Vasylenko National Technical University of Agriculture, 44, Alchevskych st., Kharkiv, 61002, Ukraine https://orcid.org/0000-0002-0098-5204
Keywords: Competitive Environment, Grain Market, Market Share, Intensity of Competition, Concentration Coefficient

Abstract

The article substantiates the feasibility of conducting a systematic analysis of the competitive environment of the grain market, provides examples of applying the results of such analysis to ensure fair and effective competitive relations. The criteria for determining the product and geographical boundaries of the product market, as well as factors taken into account when determining the territorial boundaries of such a market, are given. The essence of the methodological basis for analysing the competitive situation in the market is revealed. As part of this analysis, the algorithm for conducting research on the state of competitive market relations is generalized based on: calculating and comparing the size of market shares of individual operators; determining the overall picture of market attractiveness from the point of view of the entry of new players by calculating aggregate coefficients of competition dynamics, competitive activity, and profitability of sales in the market; comparing market shares using a variance analysis and determining the intensity of competition in the market by calculating the coefficient of variation of shares of enterprises; research of the level of market monopolization using the calculation of the market concentration coefficient, which makes it possible to determine the level of monopolization of the market of commodity producers in relation to consumers and suppliers, as well as the Herfindahl-Hirschman index, as a concentration coefficient for the three most common scientifically based types of market. The method has been tested in a market whose product boundaries are defined as a market for commercial grain that represents all possible species and quality categories and does not have substitute products. At the same time, the geographical boundaries of the market under consideration are determined by three administrative districts of Kharkiv region. Based on calculations, conclusions regarding the intensity of competition, concentration direct participants’ distribution of commodity grain and promising trends of the development and regulation of competitive relations on the current market. The results of the research carried out in the article should be used for predicting a promising competitive model.

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Author Biography

Valerii Danylenko, Kharkiv Petro Vasylenko National Technical University of Agriculture, 44, Alchevskych st., Kharkiv, 61002, Ukraine

PhD (Economics)

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Published
2020-07-24
How to Cite
Danylenko, V. (2020). Identification of the characteristics of the competitive environment of grain producers` target markets. Social Economics, (59), 32-38. https://doi.org/10.26565/2524-2547-2020-59-04
Section
MARKETING