THE PROBLEMS OF STRATEGY DEVELOPMENT FOR THE CRAFTING OPERATORS (CASE OF BREWING OF UKRAINE)

Authors:

Shvindina H.

Sumy State University,
Sumy, Ukraine

shvindina@management.sumdu.edu.ua

Stryha V.

Sumy State University,
Sumy, Ukraine

Lapin Ye.


Pages: 124-129


Original language: Ukrainian

DOI: 10.21272/1817-9215.2019.3-16

Summary:

The article deals with the set of factors that influence the brewing industry of Ukraine, the interrelations between the crafting industry and mass production, in particular. The beer tourism can be the source of the development of the country and a region. In the USA and the countries of EU craft beer production is growing and became attractive for the investors, however, in Ukraine, this sector is under threat of elimination. Due to regulating acts that was recently performed, huge competition with big corporations and decrease of real income of population small crafters have a challenge to keep on functioning. The culture of beer consumption is another problem in Ukraine while in the Chez Republic or Belgium beer crafting is a respectful business supported by the local governments. One more tendency that can be promising in terms of beer crafting production development is increasing of non-alcoholic beer consumption. The market has a big potential to grow, and it can be a strategic window for local producers.

In the paper, the social, economic factors are analyzed in order to develop the strategy. Among the main factors the lost of production capacities in the East played a significant role, the market interactions with Russian Federation were canceled, and new partners search took place. Moreover, the legislation has been changed several times for the rest years, and one of the most significant changes were licensing and promotion policy changes. Under these conditions, the mini-makers including beer crafters have to re-group their market strategies and market activities.

The modern tendencies and possible pathways are performed, the authors offered the propositions about the strategy of the development. Authors suggested that two main trajectories exist for the beer crafters: a reactive strategy and a proactive strategy. And if a proactive strategy is chosen to be implemented, this scenario can be accomplished through Bartlett-Ghoshal Strategies Framework. Multidomestic strategy can be a response to market changes, and strategic windows that opened in 2018 (legislations changes).

Keywords:
crafting, brewing, development, strategy of development.

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