VERIFICATION OF COMPETITIVE POSITION OF ENTERPRISES IN A CONSTRUCTION SECTOR

ՏՆՏԵՍԱԳԻՏՈՒԹՅՈՒՆ

Abstract

A fundamental goal of the elaboration is conducting research concerning competitive position of enterprises in a construction sector. The significance of the subject undertaken results from the role which adopted competitive strategy plays in the realization of a target of business established by an enterprise. In the subject literature, competitiveness is understood as action and competition in order to achieve a goal set by an entity. It can be also construed as the ability to achieve benefits and create a value. A primary measure of company competitiveness is its market position. Competitive position is important element in building of competitive strategy, because it allows to evaluate current capabilities of an enterprise and the directions and opportunities to its further development. In the elaboration, the measures of economic entities competitiveness analysis- basing on the Herfindahl– Hirschman (HH) concentration ratio -were discussed. Joint– stock companies listed on the Stock Exchange in Warsaw, representing the construction industry, the most numerous exchange sector, were taken under anempirical research. In the research, factors of competitive position were distinguished in narrow sense with assigning an appropriate weight to them. The factors illustrated market share and financial situation of a company. The market share was presented by a rate ofassets concentration and a concentration rate of sales revenue. Financial condition was visualized by selected profitability indicators. Empirical verification of the examined companies indicates a small number of entities having good competitive position. Basing on the criteria set, no company having very good competitive position was identified.