Page 62 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.76, # 2, 2019, pp. 56 -73

During the first stage of creation of marketing actions’ complex, the evaluation of
construction company’s competitiveness is carried out. During the second stage the
end market hypothesis (EMH) is worked out. Development of EMH of a
construction enterprise presupposes answering of the following questions:

- Fact – what do we build and sell?
- Argument– why should it be bought from us?
- Whom – segmental description of end market.
- Where – place where we are going to sell.
- When – time (when we are going to sell it).
- Through which channel – channels of marketing communications.

Depending on choice of argument, the competitive environment is established. Only
after having prepared EMH can one make an analysis of the competitive environment.

It is important to take into consideration that analysis is made only with respect to those
competitors that have strategic competitiveness identical or close with one’s company.

During the third stage of development of marketing actions’ complex, one should
establish the status of the construction enterprise the market, specify its strengths
and weakness as per SWOT analysis as well as the opportunities it might possess
and threats which might endanger it, i.e. study internal marketing environment
(micro-environment). Under micro-environment, factors closely connected to the
enterprise and which influence its tactical competitiveness are understood.

Table 1 below illustrates the results of express-analysis of micro-environment of
construction companies in Baku city.

For the construction companies mentioned below, the input task will be the increase
of profit in one year at 25%. Thus, OJSC “ACCORD Construction-Industrial
Investment Corporation” has production of construction materials and building of
housing with financial resources to reach growth of profit up to 25%. Such a task for
this company will be quite easy to resolve.

“Olympus Park” company does not have its own construction brigade, but it has the
opportunity to hire subcontractors for construction of its objects; finances for
construction are received from investors (future flats’ buyers). Theoretically, the task is
executable for organization. However, complete dependence on third parties might have
negative influence in terms of construction. Taking into account inflation at best, annual
growth of profit for “Olympus Park” will reach up to 13% (almost twice less than
required). Unlike the previous company, construction company, “Crystal Absheron”

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