Why does a subsidiary need a strategy?

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A feature of the formation of Russian integrated structures is that they were formed by state structures - shareholders - without taking into account the opinion of those enterprises that entered them. However, the enterprises included in these structures would like to benefit from such integration. The basis for the effective operation of an enterprise in the long term is a sustainable competitive advantage, which it can obtain either through low costs or through product differentiation. Since the majority of subsidiaries do not have developed strategies, it becomes necessary to develop such strategies. Additional competitive advantages due to the implementation of focused strategies of the enterprise included in the integrated structures can be obtained only through the establishment of relationships between themselves, as well as enterprises and the parent company. The maximum competitive advantages will be gained by those enterprises as part of integrated structures that will be able to discover and profitably use relationships with other enterprises of this structure, but operating in related areas of activity. The role of the marketing service is also important in the formation of a focused strategy. The necessary market conditions for the implementation of focused strategies are the most accurate definition of consumer needs, the size and prospects of the market segment, a low number of competitors and sufficient resources to serve the segment. The main risks are determined by overflowing the market niche, reducing the differences between the needs of the segment and the entire market, changing prices in the segment towards the general market, penetration into the segment of competitors.


Integrated structures, parent company, subsidiary, competitive advantage, focused strategy

Короткий адрес: https://readera.org/140261157

IDR: 140261157   |   DOI: 10.20914/2310-1202-2021-2-285-290

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