American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 29, | October - 2024 P a g e | 35 www.americanjournal.org IMPROVING THE ORGANIZATIONAL AND ECONOMIC MECHANISM FOR INCREASING THE STRATEGIC POTENTIAL OF COMPETITIVENESS OF SERVICE SECTOR ENTERPRISES Asenbaeva Aidaigul Edenbaevna, Doctoral Student at Karakalpak State University Named After Berdakh, Tel: +998934880195, E-mail: aydayasenbaeva@gmail.ru A B S T R A C T K E Y W O R D S Effective management of a company's competitive potential allows you to create certain competitive advantages. Competition is an integral qualitative feature of the economic structure of society, built on the main market of economic principles, a means of self-regulation of the economic system and an element of objective international redistribution of resources between economic systems. Industries and types of activities. Competition, competitive potential, reserve, enterprise potential, resource, business. Introduction In ensuring the competitiveness of service enterprises in the foreign market, an important factor is the technical and technological renewal and modernization of service processes by restructuring the internal competitive environment in accordance with modern requirements that shape the competitive environment in the services market. The current competitive environment in the economy accelerates the processes of modernization and technical renewal as an auxiliary “driving force” of development. In a competitive environment, there is a struggle between subjects of production relations for more productive equipment, a workplace, access to a better market and, in general, for the opportunity to receive a higher income. Competition manifests itself as an incentive to improve the quality of services, reduce the relative level of costs and increase labor productivity. In a situation where supply exceeds demand, competition arises not between enterprises, but between their products (services). Based on the above considerations, the competitiveness of services provided by service sector enterprises has a complex characteristic, which consists of a group of technical, technological, organizational, economic and social elements1. In modern conditions, service sector enterprises have limited internal capabilities and can develop sustainably by creating a favorable external environment and conditions. In conditions where external 1 Khoshimov E.A., Mingishov L.O. Creating a full-fledged competitive environment in the country is the main factor in the modernization of production // Scientific electronic journal “Economics and Innovative Technologies”. No. 1, January-February 2015. American Journal of Business Management, Economics and Banking Volume 29 October - 2024 P a g e | 36 www.americanjournal.org opportunities are small, the enterprise will play the role of an “outsider” and its position in the services market will be weak. Here we will look at the main stages of the strategy for developing the company's competitive potential. The process of developing a strategy for developing competitive potential includes a number of stages (Fig. 1.1). The external environment of an enterprise is studied to determine conditions that may affect its ability to perform its functions. The external environment of entrepreneurial activity is government regulation of the market and the behavior of competitors. Economic, social, institutional and technological directions of development of the enterprise’s activities are considered as the main area of analysis. This stage of the study is determined by the need to identify the main directions of enterprise development, threats and opportunities. A service enterprise takes into account internal resources, opportunities and limitations (strengths and weaknesses), determining the state of the external environment as the context of development. The key aspect at this stage is the connection of internal resources with external threats and opportunities. It is necessary to further strengthen the strengths of the enterprise and correct the weaknesses. At this stage, it is necessary that the available human resources and financial resources are sufficient to overcome the problems identified during the external analysis. In doing so, the enterprise must also take into account its internal legal, professional or creative resources. Changes may be required in training, organizational structure and program design, as in most other aspects. The first and second stages allow us to determine the necessary conditions for developing a strategy for developing competitive potential. Figure 1.1. Algorithm for implementing a strategy for developing competitive potential at a service enterprise American Journal of Business Management, Economics and Banking Volume 29 October - 2024 P a g e | 37 www.americanjournal.org At the next stage, the enterprise conducts an assessment of competitive potential, which includes an analysis of the main components of competitive potential and determination of competitive potential based on a comprehensive assessment, taking into account the significance of each element. Based on a quantitative assessment of the relevant components of competitive potential, a comparative analysis of each component of the competitive potential of the entire considered set of service sector enterprises is carried out and the dynamics of the components of its competitive potential is checked. Deviations (in percentage) from the average value of the corresponding component of competitive potential are calculated for each enterprise. Service sector enterprises are assessed for each component of competitiveness in ascending order, with the highest score assigned to the component with the highest value. Aggregation of scores for each element of competitive potential allows us to give an overall assessment of the competitive potential of a service enterprise. Comparison of competitive potential includes studying the competitive potential of direct competitors and other market participants, determining the average value of competitive potential in the network and comparing the assessment of the competitive potential of the enterprise with the average assessment in the network. If the value of the assessment of the enterprise’s competitive potential corresponds to the industry average or higher, then the enterprise does not require further development of competitive potential, but first of all it is necessary to realize and use existing opportunities. In a situation where the assessment of the competitive potential of a service enterprise is below the industry average, the question arises of increasing competitive potential based on choosing an appropriate strategy for developing competitive potential. The selection criteria are the internal and external competitiveness of the industry enterprise. The purpose of resource allocation and planning is to increase the efficiency of using available resources and reserves. During the planning process, standards and goals are developed that describe the efficiency of using enterprise resources. The final stage of the process of developing a strategy for the development of competitive potential is monitoring the efficiency of use of enterprise resources, which influences changes in the strategy for developing competitive potential. Monitoring competitive potential includes collecting and analyzing data and comparing benchmark values with actual ones. After monitoring the effectiveness of the use of competitive potential, it is necessary to evaluate it to determine how effectively the competitive potential is used and whether there is a need for its further development. To develop the competitive potential of a service enterprise, it is necessary to take an integrated approach to the process of managing all elements of its composition, achieving synergistic results. All this should be taken into account when developing a strategy for the development of competitive potential, paying attention to the internal and external competitive capabilities of the enterprise, which depend on the corresponding potentials that determine them. The level of competitiveness of a service enterprise is a general indicator of interest and trust in its services in the stock, financial and labor markets. The cost of a service sector enterprise, the technical equipment of workplaces, the implemented management concept, management technologies, organizational system, human capital, strategic marketing, technical, investment and innovation policies are the main factors determining this measure. Thus, by measuring and systematically influencing the above indicators, it is possible to manage the competitiveness of a service enterprise. The competitiveness of a service enterprise is measured by the American Journal of Business Management, Economics and Banking Volume 29 October - 2024 P a g e | 38 www.americanjournal.org level of customer satisfaction and loyalty. The main components of this comprehensive measure are quality, price, service life, digital services, etc. The competitiveness of the components of a service enterprise is an integral indicator of the overall potential of service processes and characterizes it in all main aspects - scientific, technical, financial, economic, personnel, production and technological. Ensuring the attractiveness of investors and the trust of an enterprise in the production of services is possible only by providing competitive services, increasing the innovative potential of the enterprise, improving the quality of service process parameters by attracting investments. Thus, the competitiveness of a service enterprise can be achieved through the targeted influence of the enterprise management subsystem on business processes in order to form and strengthen its competitive position. The main goal of managing the competitiveness of a service enterprise is to ensure the competitiveness of its services in the market. To achieve this goal, naturally, the enterprise must have service and management potential that is not inferior to that of its competitors, that is, the established goal includes not only services, but also the development of the enterprise’s potential, which ensures its competitiveness. With the wide variety of services offered by businesses today, competitiveness plays an important role in their success. It is known that managers and specialists are constantly looking for new methods and tools for enterprise management and ways to improve their competitive position. Studying consumers and competitors, identifying the advantages and disadvantages of a service enterprise in comparison with competitors allows you to create promising competitive strategies and maintain competitive advantages. References 1. Zaitsev N.L. Economics of organization: textbook for universities. – 2nd ed., revised and supplemented. [Text] / N.L. Zaitsev. – M.: Publishing house “Exam”, 2004. -624 p. 2. Petrov V. Analysis of factors, indicators and criteria that determine the success of market entities in competition at the levels of economic activity (micro, meso, macro, global) [Electronic resource] // RISK. -1999. No. 4. 3. Fatkhutdinov R. A. Managing the competitiveness of an organization: textbook. allowance. M.: EKSMO – 2005. -544 p. 4. Fatkhutdinov R.A. Managing the competitiveness of an organization [Text]: textbook. / R.A. Fatkhutdinov. 3rd ed., revised. and Assoc. – M.: Market DS, 2008, - 432 p. 5. Khoshimov E.A., Mingishov L.O. Creating a full-fledged competitive environment in the country is the main factor in the modernization of production // Scientific electronic journal “Economics and Innovative Technologies”. No. 1, January-February 2015.