THEORETICAL CONCEPT OF CONPETITION AND COMPETITIVENESS IN IT SECTOR
Abstract
It is becoming more and more important to comprehend the notion of competition, competitive advantages, and competitiveness in the IT sector, which are described fairly ambiguously by intreseted parties, given the dynamism and enormous influence of ICT on the transformation of the modern world. With a thorough and cogent viewpoint, this study seeks to define the core of these categories in the IT sector. An examination of the literature over the past 30 years revealed that companies within IT sector compete for limited resources by providing stakeholders with the highest consumer value, winning over their loyalty, and growing its market share. It was found that features of competition in the IT sector are the global scale, short product life cycles (as a result of the rapid digital technologies development), a significant emphasis on strategic partnerships and M&A agreements, significant price pressure, as well as dependence on a complex regulatory framework with issues of data privacy, security, intellectual property and fair competition. The classification of competitive advantages of IT companies based on how they were formed is suggested. Respectively, these advantages include financial and economic, managerial, technological, infrastructural, and advantages related to the favorable environment. Additionally, the authors’ vision of the strategic directions of competition in IT is presented. The idea of the national economy's IT sector's competitiveness has been researched in the context of developing a value proposition (which is an actual representation of competitiveness) depending on the spheres of use of IT achievements. Depending on the value proposition for the main stakeholders (consumers, IT companies, IT professionals, investors, and the government), the authors developed aspects systematization of IT sector competitiveness. The ability of IT companies to compete successfully on the global IT market as a result of their own competitive advantages, investments in R&D, compliance with international standards, and generally accepted business practices adoption in order to raise the standard of living for people is proposed as a way to define the IT sector competitiveness.
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