Strategy of Serbian enterprise adjustment in the conditions of market decreasing
2003
Zaric, V. | Radivojevic, A. | Stamenkovic, L. (Univerzitet u Beogradu, Beograd - Zemun (Serbia and Montenegro). Poljoprivredni fakultet, Institut za agroekonomiju)
The former SFRY was a market of more thean 20 million consumers. The break down of the country creates instead one at least seven market each having on average no more 3 million consumers. Moreover, war conflict destroyed the huge part of the infrastructure and the communication within the markets broke down. In new established states the market were highly protected, and difficult to access from producers and traders from other country. In especially difficult situation were producers that in the past operate in all successors country of former SFRY, like some vegetable and fruit producers from Serbia. Additionally, as Serbia was under UN sanction, export was only possibly by breaking the sanction rules, which for small producers was too expensive. Other possibility was to increase the shares on the domestic market. However, the purchasing power of domestic consumers goes down, because of declining wages. In order to survey, domestic producers are in the hard competition with other domestic producers. This paper analyses the competitive strategy of Serbian enterprises in the situation where the market volume is reduced.
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