Agrarian Economy 2023 Т. 16 № 1-2: 69-80

BUSINESS MODELING AS A TOOL OF STRATEGIC MANAGEMENT OF THE AGRICULTURAL WHOLESALE MARKET DEVELOPMENT

V. Krupa, Candidate of Economic Sciences (PhD), Associate Professor
ORCID ID: 0000-0001-8658-7735
Lviv National Environmental University

https://doi.org/10.31734/agrarecon2023.01-02.069

ANNOTATION

The essence and significance of business models as a tool for correction of market strategies of enterprises are considered. It has been determined that a business model acts as a connecting link between the factors of internal and external environment of the enterprise in strategic management. Business model describes the mechanism of functioning a certain business, which includes the processes like attracting resources and business partners, creating value proposals, promoting a product at the market, establishing interaction with various client groups. By using the Business Model Canvas sample, a modern business model of the wholesale agricultural market “Shuvar” is described. The research defines main characteristics of the “Shuvar” business model, in particular a comprehensive value proposal, a wide range of partners and clients, diversification of relations with customers and developed communication channels. Generally, it ensures effective economic activity of the enterprise at the regional food market. The “Shuvar” market business model combines two main formats – B2B and B2C. A wide range of services, organized according to the European trade and service standards, defines the basis of the value proposal of the “Shuvar” market business model. By using the sociological method, some advantages of the market business model, as well as, factors of customer loyalty were analyzed. The customers’ opinions about directions to improve the “Shuvar” market activities were clarified. The strategic development goal of the “Shuvar” market is to transit to a full-fledged wholesale and intermediary format of activity (B2B) in compliance with the European principles of the wholesale food trade organization. The main directions for improving the business model of the wholesale food market include increasing the share of wholesale operations, improving communications and expanding cooperation with the main groups of customers, organizing food auctions, integration and cooperation with agricultural producers and trade structures, implementing the innovative development strategy, forming an own network of local wholesale markets.

KEY WORDS

business model, wholesale trade, wholesale agricultural market, strategic management

FULL TEXT

LINK

  1. Agricultural Market «Shuvar», 2023 [online] Available at: https://shuvar.com [Accessed 28 April 2023].
  2. Baker Tilly, 2021. What is a Business Model and Why it`s Needed [online] Available at: http://surl.li/hejqf. [Accessed 27 April 2023].
  3. Domanska, N. A., 2017. Wholesale Markets of Agricultural Products as a Forms of Entrepreneurial Activity and Their Organizational and Legal Forms and Models. Scientific Bulletin of the Stepan Gzhitskyi National University of Veterinary Medicine and Biotechnology of Lviv, 19, 81, p. 88–92.
  4. Hretska, N. A., 2013. Development and Functioning of Wholesale Agricultural Markets in Ukraine. Economics of AIC, 11, p. 50–56.
  5. Hubeni, Y., Krupa, V., Krupa, O. and Raiter, N., 2020. Globalization and Local Determinants of HORECA Customers Market Behavior in the Wholesale Food Market. Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego, 20(35) (1), p. 25–39.
  6. Kasych, A. O. and Rafalska, I. V., 2019. Business Models of Modern Enterprises: Concepts, Types, Foreign Experience. Black Sea Economic Studies, 37, p. 86–92.
  7. Kovalska, L. and Rechun, O., 2018. The Business Model of Strategic Development: the Essential Characteristics and Methods of Assessment. Economic Forum, 4, p. 169–176.
  8. Kryvoviaziuk, I. V. and Roshkevych, V. F., 2013. Business Modeling as a Basis of Functioning and Future Development of the Enterprise. Economy and State, 11, p. 23–28.
  9. Osterwalder, А. and Yves P., 2010. Business Model Generation. Hoboken, New Jersey: John Wiley & Sons, Inc.
  10. Prokhorova, V. V., 2020. Business Models as a Tool for Improving the Strategic Positions of Enterprises in a Competitive Market. Problems of economics, 2 (44), p. 274–280.
  11. Salamin, O. S., 2014. Formation and Development of Wholesale Agricultural Markets. Scientific Bulletin of the Stepan Gzhitskyi National University of Veterinary Medicine and Biotechnology of Lviv, 16, 1(2), p. 115–122.
  12. Shubravska, O. V., Ryndenko, N. A., 2012. Wholesale Agricultural Markets: European Experience and Ukrainian Perspectives. Economy of Ukraine, 8, p. 77–85.
  13. Shulskyi, M. H. and Voitovych, Z. S., 2014. Actual Problems of Wholesale Agricultural Market Development in Ukraine. Scientific Bulletin of the Stepan Gzhitskyi National University of Veterinary Medicine and Biotechnology of Lvi, 16, 1 (58), р. 282–287.
  14. Verkhovna Rada of Ukraine, 2009. The Law of Ukraine dated 25 June 2009 № 1561-VI «About wholesale agricultural markets» [online] Available at: http://zakon2.rada.gov.ua/laws/show/1561$17 [Accessed 25 April 2023].
  15. Zott, C. and Amit, R., 2010. Business Model Design: An Activity System Perspective. Long Range Planning, 43 (2/3), p. 216–226.