MANAGEMENT OF SUPPLIERS IN THE UKRAINIAN ENERGY MARKET: STRATEGIC CHALLENGES

Keywords: enterprise management, enterprise suppliers, energy market, liberalization, business in the field of energy supply

Abstract

The article summarizes the strategic challenges faced by business in the field of energy supply as a result of martial law and inconsistency in the implementation of reforms in the energy market of Ukraine. Among them: 1) monopolization of business (the return to regulated prices in the domestic segment of the natural gas market through the mechanism of imposing special obligations created unequal conditions of access to energy resources and made suppliers dependent on the state enterprise "Naftogaz of Ukraine"); 2) a decrease in the number of consumers and a fall in their purchasing power (suppliers whose consumers are concentrated in the occupied territories, as well as the territories of hostilities, found themselves in a more difficult situation); 3) the deterioration of the financial condition of the suppliers' enterprises (the government legalized non-payment by its legal acts, prohibiting price increases and taking measures aimed at collecting debts for consumed energy). It has been proven that it is possible to level external risks and threats by building an effective enterprise management system, that is, relying on the internal development potential. Priority business processes that form the internal development potential for supplier enterprises can be considered as follows: transition to digital interactions with customers (contactless payment methods, procedures for online work with customer contracts, creation of mobile applications); creation of client and partner networks (regional sales networks, agency networks, involvement of banking and postal networks); development and introduction to the market of innovative products that make it possible to integrate own business processes into the business processes of clients (package offers for the sale of energy resources, turnkey solar power plants, client energy consumption consulting, aggregate and combined products, etc.). Focusing on improving the quality of sales services is a priority direction of strategic management of supplier enterprises, since after the final completion of market liberalization, non-price methods of competition will be able to resist monopoly power.

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Published
2023-01-31
How to Cite
Shvedkyi, V., & Kostin, Y. (2023). MANAGEMENT OF SUPPLIERS IN THE UKRAINIAN ENERGY MARKET: STRATEGIC CHALLENGES. Economy and Society, (47). https://doi.org/10.32782/2524-0072/2023-47-40
Section
ECONOMICS