UDC 659.113.29

Authors

Aleksey N. Litvinov,
Candidate of Science (Economics), Associate Professor of Management Department, Financial University under the Government of the Russian Federation, Moscow, Russia
Anton M. Rudomazin,
Member of VTSC, Financial University under the Government of the Russian Federation, Moscow, Russia

Abstract

Purpose of work. The purpose of work is to investigate approaches to the choice of the optimal market area in which a manufacturer of executive-class cars can operate without the pressure of major competitors.
Materials and methods. Now the enterprise "Aurus" Ltd. plans to bring its goods to the market of representative cars. Such decision may lead to low demand, as this segment is divided between several large companies with large budgets for development, production and sales of their products. This environment is called the "scarlet ocean". The task of the company may be to find the "blue ocean", a segment of the market free from competitors.
Results. The history of the company LLC "Aurus" dates back to 2013, when in accordance with the order of 13.09.2013 № 1642-r FSUE NAMI signed a contract without competition for the project "Single modular platform". Thus, NAMI became the only executor of the state order for the construction of a representativeclass car, which will carry out transportation and ensure the safety of the first persons of the state of Russia. However, in addition to the above objective, NAMI set the main task to develop a representative car for the civil segment. Such organization of production of complex technical vehicles, given without a tender of one state company, extended the creation of the project for 8 years, required the attraction of additional investments in double amount and partly brought an uncompetitive product to the market. The ready product was presented in 2018, but it will be available for sale only in 2021. This time dispersion is dangerous for the company operating in the market, where new technologies appear annually. However, the company has another year to choose the right strategy.
Conclusion. At this rate of production and development, the company will not be able to keep up with the technological level of its competitors. Changes in both production and marketing are necessary for the company.

Keywords

strategic management, blue ocean, Aurus, strategy development.