Problems of competitiveness of domestic business in war conditions.

Анотація

The full-scale invasion has fundamentally transformed the operational environment for Ukrainian business, shifting the focus from growth to survival. In 2022-2026, domestic enterprises faced a unique set of challenges: physical destruction of assets, total disruption of logistics, and a systemic energy crisis. These factors have significantly eroded the traditional competitive advantages of Ukrainian manufacturers, such as low production costs and stable supply chains. The study of competitiveness under such extreme conditions is vital for developing recovery strategies and ensuring the long-term viability of the national economy in the global market. Purpose. The main goal of this research is to analyze the key destructive impacts of the war on the competitiveness of Ukrainian enterprises and to identify the adaptive strategies that allow businesses to maintain their market presence. The study aims to evaluate the shifts in the competitive landscape caused by infrastructure damage, labor migration, and logistical shifts, providing a basis for strategic recommendations for both business owners and policymakers during the war and the post-war reconstruction period. Results. The research identifies that the competitiveness of domestic firms is currently hindered by four major factors: a logistical collapse (with maritime export paths restricted and costs increasing by 25-40%), an energy deficit (loss of 27 GW of generation), and a critical "brain drain" (over 70% of refugees have higher education). Statistical data shows that despite a 30-50% rise in operational costs, businesses are adapting through relocation, digitalization, and export diversification. Competitiveness is increasingly determined by "agility" – the ability to rapidly reconfigure supply chains and adopt decentralized energy solutions. The study highlights that the IT and agro-sectors have shown the highest resilience due to their digital nature and global demand. The war has forced a shift from price-oriented competitiveness to resilience-based competitiveness. The "adaptability advantage" developed by Ukrainian firms is a unique asset, but it is insufficient for long-term growth without systemic support. Sustainable competitiveness in the post-war era will require massive reinvestment in infrastructure, the implementation of "green" energy technologies, and state-led programs to bring back the skilled workforce. Integration into the EU Single Market remains the primary strategic vector for domestic enterprises to regain their competitive standing and ensure economic sovereignty.

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