The industry life cycle concept as a tool for economic potential management at textile enterprises

Abstract

The expediency of the industry life-cycle concept as an effective business management tool to form the system of enterprise economic potential factors has been argued. The purpose of the study is to identify directions for enterprise economic potential growth at different stages of an industry life cycle in the case study of textile industry in Russia. Historical and logical research methods to assess industry dynamics and applied statistical methods to construct dynamic series have been used in the research. The study of the history of production and sales has resulted in the distinction of the industry life cycle stages: up to the middle of the XIXth century - introduction, up to 1990 - growth, 1990-2002 - turbulence, from 2002 to the present time - early maturity. The environment peculiarities of textile and clothing industry in Russia have been characterized in the context of each stage of the industry life cycle. The system of economic potential growth factors (in regard to its individual elements - production, employment, finance, innovation, marketing, and organizational management) has been formulated for each distinguished stage. Particular attention has been paid to the system of measures to increase the textile enterprises economic potential at the present stage of the industry development. The scientific novelty of the approach to the problem of company economic potential management provided by the author is the application of the industry life cycle concept as a tool to make managerial decisions on the enterprise development taking into account the industry market tendencies. The conclusions and the results can be used in various industries to determine the ways to increase the efficiency of management decision making.

Keywords

enterprise, economic potential, competitiveness, management efficiency, industry, competition, industry life cycle, life cycle stages, textile industry, clothing industry, development trends, growth factors

For citation

Ibragimova R.S., Golovkin D.S. The industry life cycle concept as a tool for economic potential management at textile enterprises. Perm University Herald. Economy, 2017, vol. 12, no. 1, pp. 124–135. DOI 10.17072/1994-9960-2017-1-124-135

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