ASSESSMENT OF THE BUSINESS ENVIRONMENT OF THE PORTUGUESE FURNITURE MARKET FOR UKRAINIAN MANUFACTURERS

Abstract

The changing international business environment and intensifying competition are pushing companies to continuously develop and improve their operations. One of the ways to strengthen competitive positions, expand the boundaries of their activities and increase market share is to enter international markets. A company's successful entry into a foreign market should be preceded by a market research of the business environment of that market with a view to identifying potential threats and opportunities for the company's operation in that market and developing or adjusting its business strategy on this basis. The article reveals the specifics of the business environment of the Portuguese furniture market for Ukrainian producers. It has been determined that the threat factors for Ukrainian furniture enterprises in the studied market are much less than the factors of opportunities, which opens up prospects for successful entry into this market. It is found that of all the components of the business environment of the Portuguese market for Ukrainian furniture manufacturers, the most favorable opportunity factors are political stability and low political risks, zero import duty rate, relatively high consumer wages, low inflation, the presence of Ukrainians in Portugal, significant volumes of furniture imports by this country, the trend towards eco-friendly goods and other cultural trends, low market concentration, lack of substitute goods and a significant number of potential consumers. The most influential threat factors of this market for Ukrainian furniture enterprises are the gradual decline in population and the long distance to Portugal, as well as a significant number of foreign competitors in the studied market. The article reveals the peculiarities of the competitive environment of the Portuguese furniture market, which consist in the presence of a significant number of competitors, primarily foreign ones, both from developing countries, especially Asian ones, and from developed countries, especially other EU countries. All of this requires domestic companies to constantly improve and take into account the slightest changes in consumer demand in order to produce high quality products and a wide range of products.