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BCG-analysis of the Industry of the Prydneprovsk and Donetsk Economic Regions: Definition of Smart Priorities and Development Strategies

Journal: Herald of the Economic Sciences of Ukraine (Vol.40, No. 1)

Publication Date:

Authors : ;

Page : 35-46

Keywords : BCG analysis; Prydneprovsk economic region; Donetsk economic region; industry; smart priorities; strategy; regime of international public-private partnership;

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Abstract

The article defines the smart priorities of the industry of the Prydneprovsk and Donetsk economic regions and the optimal strategies for the redistribution of financial flows between various types of economic activity. It was revealed that the BCG matrix allows you to determine a strategic position for each type of economic activity of the industry and, based on the analysis of this position, choose a strategy for its development. A modified BCG matrix is proposed, which is designed to study the smart priorities of the industry of the Prydneprovsk and Donetsk economic regions. Four strategic zones of the BCG matrix are highlighted – «Strategic Leaders», «Current Leaders», «Prospective Leaders» and «Depressive Sectors», which allows you to choose a suitable strategy for the further development of industries. Determined that for the «Strategic Leaders» the strategy of maintaining leadership is applied; «Current Leaders» - a strategy of maximizing profits directed to the development of new products of «Promising Leaders» and maintaining the products of the «Strategic Leaders» industries; «Prospective Leaders» - an investment or selective development strategy; «Depressive sectors» - a target strategy for depressed sectors or the elimination of depressed sectors / exit from the market. It was determined that the Prydneprovsk and Donetsk economic regions should focus on such smart priorities as «Strategic leaders» and «Prospective leaders». A «regime of international public-private partnership» is proposed to attract investments in the regional economies, which combines a system of incentives and benefits, mandatory conditions and restrictions to maintain a balance of interests of international donors, the state and business. An algorithm for introducing a regulatory regime for international public-private partnership is presented.

Last modified: 2021-08-11 18:06:29