Zhuk A.A., Ambartsumyan M.G. Competitive environment of the regional market for carboxymethyl cellulose in the Rostov region
Aleksandr Aleksandrovich Zhuk
Doctor of Economic Sciences, Professor, Department of Economic Theory, Southern Federal University
Gorkogo St., 88, 344007 Rostov-on-Don, Russian Federation
Marat Gagikovich Ambartsumyan
Master’s Program Student, Southern Federal University
Gorkogo St., 88, 344007 Rostov-on-Don, Russian Federation
Abstract.
In the modern conditions of the development of industrial markets, the issues of the competition become especially urgent. The competition intensifies the activities of firms, leads to the improved product quality, lower prices and costs, and finally, stimulates the introduction of new technologies. However, without the state interference, the competition can also cause negative trends, such as the creation of cartels, the conduct of unscrupulous methods of struggle and this all negatively influences the development of the industrial market. The author’s study of the competitive environment of the carboxymethylcellulose market in the Rostov region, in particular, is directed on the monitoring of the condition and the intensity of the competition and the assessment of the prospects for its development. Using the results of the study it is planned to develop measures to increase the intensity of the competition in the market of CMC in the Rostov region. The authors analyzed the competitive environment of the CMC market on the basis of the methodology of institutional economic theory. Today the CMC market of the Rostov region is in fact divided between two subjects practically in equal parts. The consumers of this product in the local market are small business entities outside the region a large company is a consumer providing a stable demand for products of both of the firms. The authors concluded that the CMC market in the Rostov region is characterized by a low intensity of competition with the presence of only two manufacturers of this product. For 16 years the market concentration has dropped, the volume of the production and the profit of organizations has increased. As a result during the studied period the competitive fight has lead to the drop of prices in this market, to the increase of the sectoral production growth. The government has to pay a special attention to the analyzed industry by means of the reduction of the barriers the market, to create the conditions of the involvement of new actors and to help the existing subjects.
Key words: competition, competitive environment, industrial market, Rostov region, carboxymethylcellulose.
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