180   AMERICAN Journal of Public Diplomacy and International Studies                              www. grnjournal.us  

 
 

AMERICAN Journal of Public Diplomacy and  
International Studies 

Volume 01, Issue 06, 2023    ISSN (E): 2993-2157 

 
 

Increasing the Material and Technical Competitiveness of Enterprises. 
 

 

Sultanova Nigina Utkurovna 

Samarkand Institute of Economics and Service 

PhD student 
 

 

  

Abstract 

This article is about transformation processes in many sectors of the socio-economic sphere 

as a result of the rapid development of new information technologies in the conditions of the digital 

economy, and the assessment of the level of competitiveness of enterprises to ensure the 

competitiveness of retail service enterprises in the service market and the implementation of strategic 

directions for ensuring competitiveness are the main points of the article.  

Keywords- Digital economy, information and communication technologies, competition, 

competitiveness, trade services, retail trade services, enterprise, strategy. 
 

 

 

 

INTRODUCTION 

 

"In the 70s of the 20th century, the scientific research of a number of scientists played an 

important role in the formation of the digital economy. The development of information technologies, 

the computer becoming the main tool of work and the emergence of a global network in data 

transmission networks, the Internet, and similar factors caused the development of the digital 

economy. As a result of the development of global information and communication technologies, the 

emergence of an electronic environment and the presence of enough enterprises that use this 

environment in their activities is one of the unique features of the economy of our republic. This 

creates conditions for wide use of information technologies in the field of modern entrepreneurship. 

At the same time, the effective use of these technologies in business activity determines the level of 

successful activity of entrepreneurs in the domestic and international market. 

In today's competitive environment of modern business, for any manager, the fate of the 

company he manages undoubtedly depends on his competitiveness. 

In the process of fundamental reform of the national economy in Uzbekistan, one of the priority tasks 

of the socio-economic policy is to increase the competitiveness of service enterprises, to organize 

modern trade services for the timely delivery and sale of quality goods to consumers, trade based on 

the use of information and communication technologies, and the effective use of these service 

opportunities. becomes important. The largest share in the structure of services corresponds to the 

contribution of trade services, that is, this indicator is 32.3%. 



181   AMERICAN Journal of Public Diplomacy and International Studies                              www. grnjournal.us  

 
 

The need to revise the main approaches to ensure the competitiveness of trade services 

enterprises in our country is mainly due to the unprecedented high share of foreign enterprises in the 

domestic services market. 

Today, human interests are above all else. Trade has important social and economic 

importance in each region and country as a whole. So, trade is a type of business activity that is 

closely related to buying and selling goods and providing services to customers. 

Retail service is the result of direct interaction between the seller and the buyer, and is a private 

activity of the seller to satisfy the demand of the buyer in the acquisition of goods for use, which is 

not related to the business activity under the sales contract. 

Materials and methods. The American scientist Porter developed the concept of competitive 

strategy in 1975-1980 during the period of declining growth in most sectors of the economy. The 

focus of the enterprise is not only customer satisfaction, but also competitive forces in the market. 

Porter's five driving forces of competition are given in the diagram below. 

 

 
Figure 1. Competitive forces. 

 

According to Michael Porter's theory, the development of the industry and the achievement 

of economic competitive advantage at the world level are related to the production of innovations and 

require the innovation of technologies in the industry. In this regard, the use of these technologies 

requires us to see the direction of their management in terms of clusters. In this case, as a result of 

making radical innovative changes to the technology of product production and by managing these 

technologies, it creates an opportunity to achieve a high level of development in the industry. 

Also, M. Porter distinguished the types of competitive forces and strategies, taking into 

account companies that produce products similar in terms of characteristics and functional goals, that 

is, substitute goods, and determined that the level of competition in the industry depends on five 

competitive forces: 

- internal struggle of competitors in the market; 

- risk of new competitors; 

- risk of emergence of substitute goods; 

- bargaining power of buyers; 

- bargaining power of suppliers. 

The analysis of Porter's five competitive forces model makes it possible to identify the 

strengths and weaknesses of the enterprise, to determine the areas where strategic changes will give 

Interdependent and 

complementary 

networks 

Firms' strategy, 

composition and 

competitive 

environment 

Being provided 

with factors 

Demand 

parameters 



182   AMERICAN Journal of Public Diplomacy and International Studies                              www. grnjournal.us  

 
 

maximum results for increasing business efficiency, and to create a competition matrix that shows 

the relationship between the level of competition in the market and the competitive advantage of the 

firm. 

The quadrants of this matrix represent four competitive strategies: 

- cost-saving leadership strategy - implies reduction of general costs for material resources, 

production and sale of goods and services; 

- strategy of alternative costs - minimizes costs to the optimal level, which allows to obtain 

the maximum volume of production of quality goods and services for profitable market segments; 

          - differentiation strategy - determines the main goal of production of unique goods based 

on consumer demand; 

          - focused differentiation strategy - aimed at providing consumers with goods and 

services that best suit their tastes and requirements. 

Analysis and results. The conducted studies have shown that in the current environment, the 

competition for buyers among trade enterprises is increasing, as a result of which the competition for 

leadership in the market is gaining maximum speed. As a result of increased trade concentration, 

retail prices are set, and the profitability of trade activities is decreasing. In such conditions, the 

market is experiencing saturation due to the presence of segmentation. At the same time, the 

importance of competitive strategies is increasing, favorable conditions are being created for the 

development of new trade formats. Increased concentration will lead to increased funding for 

businesses to explore changing consumer needs, as retailers begin to compete for consumer loyalty. 

Intensification of competition reduces the profitability of sales processes, under such conditions, 

enterprises are forced to optimize the assortment and increase logistics efficiency. 

Today, multi-format (directional) trade is rapidly developing in our country in the conditions 

of the digital economy, where each format is characterized by a customer-oriented approach and is 

aimed at fully meeting the needs of the population, regardless of income, age and a number of other 

indicators. In accordance with the Decree of the President of the Republic of Uzbekistan No. PF-60 

of 28.01.2022, tasks for rapid development of the national economy and ensuring high growth rates 

in the Development Strategy of New Uzbekistan for 2022-2026, which consists of seven priority 

directions, developed on the basis of the principle "From the strategy of actions to the strategy of 

development" marked. In particular, by ensuring stable high growth rates in the economic sectors, in 

the next five years, to increase the gross domestic product per capita - 1.6 times, and by 2030, to 

increase the per capita income from 4 thousand US dollars, and to join the ranks of "countries with 

an income above the average". It is aimed to create a foundation, and for this purpose, to ensure 

macroeconomic stability and gradually reduce the annual inflation rate to 5% in 2023. Also, through 

the development of services and service sectors in the regions, to increase the volume of services by 

3 times in the next 5 years and to create a total of 3.5 million new jobs in this direction, to develop 

paid plumbing for the development of household and communal services that are highly needed by 

the population in the centers of cities and districts, development of service points such as electricity, 

repair of household appliances, catering, 130 modern markets and shopping complexes, as well as 65 

large and 5000 small service facilities for the development of roadside infrastructure, in the field of 

service in order to reduce the share of the hidden economy by 3 times, to increase the attractiveness 

of the service sector, it is planned to provide additional benefits to business entities in the sector, and 

it is envisaged to develop the network and distance trade through the trade development strategy, as 

well as to expand the supply chain. In accordance with the trade development strategy, fairs, 

agricultural and wholesale food markets are supported by the state, which allows local producers to 

diversify their supply and obtain cheap distribution channels. 



183   AMERICAN Journal of Public Diplomacy and International Studies                              www. grnjournal.us  

 
 

Discussion. A review of existing approaches to the formation of competitive strategies of 

commercial enterprises in the digital economy revealed significant shortcomings in the development 

and implementation of modern competitive strategies: one of them is the failure to take into account 

the interdependence of the dominant definitions of "competitiveness" and "competitive strategy". The 

main link between them is the strategic potential of retail trade enterprises, which is represented by 

financial opportunities, trade potential, competitiveness of sold products, labor potential, material and 

technical potential, brand competitiveness, etc. The relationship of dominant definitions is shown in 

Figure 1.8. 

 
 Figure 2. The relationship of dominant definitions (developed by the author). 

 

 Any enterprise can use these innovative strategies to expand its activities and increase its 

competitiveness. If the enterprise can effectively use the project in the implementation of its 

innovation strategy, it will have the opportunity to establish very effective relations with its customers 

and partners. However, in this case, the enterprise does not fundamentally change its main activity 

due to corporate projects, but on the contrary, it creates an opportunity to expand its activities. Based 

on this, it can be said that it is very unlikely that retail enterprises will develop their innovative 

strategy, implement their strategic goals and general economic strategy without analyzing the actual 

state of their innovative activities and scientific and technical support and the possibilities of its 

development. 

 

 Literature reviews. 

1. Porter M. International competition [Text] / M. Porter. - per. from English / Edited and with 

a preface by V.D. Shchetinin. - M.: International relations, 1993. - 896 p. 

2. Marinshoev M.M. Methodological bases for assessing indicators of retail services // 

Synergy. 2017. No. 5. P. 33-40. 

3. Paramonova T.N. Competitiveness of a retail enterprise: a study guide. M.: KNORUS. 

2016. 120 p. 

Competitive strategy

Competitiveness
Strategic potential