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13STRATEGIC ANALYSIS OF THE DEVELOPMENT OF WHOLESALE
TRADE IN UZBEKISTAN
Kholmamatov Diyor Haqberdievich
Independent Researcher of SamlES, PhD e-mail: xolmamatov_d@mail .ru
Abstract: In this article, the strategic analysis of the development of wholesale trade in the regions of the Republic of Uzbekistan is based on the BKG matrix. Appropriate conclusions were reached on the development of wholesale trade in each region and practical recommendations for future development were developed.
Keywords: wholesale, BKG matrix, marketing strategies, strategic planning, customer market, competitive environment.
Introduction
Decree of the President of the Republic of Uzbekistan dated January 28, 2022 PF-60 "On the new development strategy of Uzbekistan for 2022-2026" was approved. In accordance with the goals set in the New Uzbekistan Development Strategy for 2022-2026, this Decree will continue the industrial policy aimed at ensuring the stability of the national economy and increasing the share of industry in GDP, increasing industrial production by 1.4 times, ensuring uninterrupted supply to industries and the population. , the creation of 130 modern markets and shopping malls through the development of trade and road services in the regions of the republic [1].
Also, the Presidential Decree No. PP-99 of January 24, 2022 "On measures to create an effective system for the development of production and expansion of industrial cooperation in the country" focus on creating a competitive environment for content expansion [2].
The role and importance of wholesale trade in the integrated socio-economic development of the regions, the uninterrupted flow of inter-sectoral and inter-regional products, the development of exports of local products, the creation of modern markets and shopping malls is invaluable.
One of the most pressing issues is the strategic analysis of the development of wholesale trade in Uzbekistan and the development of specific marketing strategies for development prospects.
Analysis of the relevant literature
The BKG matrix is widely used in marketing as a tool for strategic analysis and planning. Boston Consulting Group founder Bruce D. Created by Henderson [9] to analyze the growth in demand for the company's products and the company's market share.
Today, the development of marketing strategies based on the application of the BKG matrix is reflected in the scientific research of many marketing professionals. Well-known marketing specialist F. Kotler in his scientific research has conducted
extensive research on the theory of the BKG matrix, its application in industries and sectors of the economy [3,4].
Famous Russian marketing specialist Golubkov E. P. In his research, he conducted extensive research on the practical application of the BKG matrix in enterprises, industries and sectors of the economy [5,6].
Theoretical and practical aspects of the BKG matrix are also covered in the scientific researches of our local scientists A.Sh. Bekmuradov, Sh.J. Ergashkhodjaeva [7].
It can be seen in the scientific research of EA Golikov, a well-known Russian expert on the use of the BKG matrix in the strategic planning of marketing activities in wholesale trade.
A.A. Fattakhov, a local scientist, conducted research on the application of marketing strategies in wholesale trade, arguing that marketing strategy is a means by which wholesalers influence consumers and the practice of using matrix methods [8].
Based on the methodology of the above research, the strategic analysis of the development of wholesale trade in the regions of the Republic of Uzbekistan is based on the BKG matrix.
Research methodology
The strategic analysis of the development of wholesale trade turnover in the regions of Uzbekistan was analyzed using mathematical and statistical methods. The wholesale turnover of the regions was analyzed by the method of comparative analysis. The BKG analysis method itself was used. Monographic observation, abstract-logical thinking, methods of scientific observation were also used.
Analysis and results
In recent years, market relations in Uzbekistan have become increasingly free, and the laws of the market economy apply in all sectors and industries of the economy. The importance of marketing in the development of sectors of the economy, the development of areas of activity is also growing significantly.
Important conditions for the application of marketing in the activities of enterprises are:
1) Market situation - when the buyer is in the market.
2) Competition.
3) Long-term motivation.
4) Freedom of activity in the indoor environment, availability of qualified specialists, adequate equipment, etc.
5) The speed of capital movement.
6) Freedom of choice of areas of activity.
All these conditions have become fully applicable in the market of goods and services of Uzbekistan. In particular, the consumer services market is dominated by a strong competitive environment.
The world experience of trade development shows that wholesale trade remains an important link in the consumer market. In developed economies, there is a clear mechanism for the development of wholesale trade, and similar trends in their
activities, systemic and organizational decisions are specific to a particular stage of economic development.
At present, the main directions in the development of wholesale trade in foreign countries are concentration and diversification. There is a merger of independent wholesale enterprises, the organization of wholesale and retail trade in the structure of industrial enterprises, the expansion of the network of major trade intermediaries, the merger of wholesale trade structures. However, the position of small wholesale structures is not weakened.
The development of a new concept for the development of wholesale trade in our country is a requirement of modern economic development. On the basis of digitalization of full sales operations and warehousing, improvement of logistics and marketing services, it is necessary to establish wholesale trade enterprises that will provide a smooth supply of retail goods, provide comprehensive services to customers, ensure uninterrupted product movement in sectors of the economy.
To do this, we must first analyze the strategic state of wholesale trade. The economic portfolio matrix can be used to determine the strategic status of wholesale trade in our country. The farm portfolio matrix is a two-dimensional model that compares the strategic position of diversified wholesale business in each region. One of the most common methods of assessing wholesale trade activity is matrix analysis of the business portfolio.
The economic portfolio matrix consists of a table comparing the strategic position of each component of diversified wholesale trade activities.
The matrix can be constructed on the basis of any pair of indicators describing the strategic situation. Of particular importance are the growth rates of the network, market share, the long-term attractiveness of the network, competitiveness and the stage of development of the wholesale business. Typically, one axis of the matrix represents the attractiveness of the network, while the other reflects the state of a particular type of activity in it. The most widely used of the farm portfolio matrix is the BKG matrix.
The BKG matrix compares and summarizes the diversified wholesale situation based on the network growth rate and relative market share indicators.
The most widely used quadrant quadrant labor activity matrix matrix was developed by Boston Consulting Group (BKG), a leading consulting firm.
We analyze the development of wholesale trade in the regions of the country, the distribution of wholesale trade turnover by regions, ie the strategic development of wholesale trade on the basis of the share of each region.
First, the main line that separates markets with high and low growth rates corresponds to the average value of the growth rates of regional wholesale turnover relative to the 'network growth' axis.
Second, the demarcation line for the 'market share' axis is usually drawn through 1 or 1.5 points. If the market share is higher than this figure, it is considered large, otherwise it is small.
The matrix is derived from the concept of 'relative market share', which is defined in relation to the market share of each region in relation to the total wholesale turnover.
We recommend the use of a model called the BKG matrix in the formation of the strategy for the development of wholesale trade turnover by regions of the Republic of Uzbekistan. To use this method, you must first construct a BKG matrix. Two indicators are used to construct the BKG matrix:
1. The growth rate of the wholesale market by region or the volume of wholesale turnover.
2. The relative share of regions in the total wholesale turnover in the market. These indicators are calculated for all regions and their wholesale turnover and
are formalized in the form of Table 1.
Table 1
Information on growth rates and relative market share of wholesale trade
turnover by regions
Wholesale turnover of regions Growth rate Relative market share Share in total sales of goods
1- region Vi Hi Ki
2- region V2 H2 K2
n-region Yn Hn Kn
To do this, we will analyze the wholesale trade turnover in the regions of the Republic of Uzbekistan. The state of regional wholesale trade is assessed on the basis of wholesale trade statistics for 2015-2019.
Table 2
Dynamics of wholesale trade turnover by regions of the Republic of Uzbekistan ^ 1
Regions Years (billion soums) Growth rate
2015 2016 2017 2018 2019
The Republic of Karakalpakstan 722,2 788,4 905,7 1336,5 1669,6 110,5
Andijon 1159,1 1218,2 1274,5 2327,1 2485,4 94,7
Bukhara 1334,6 1577,1 1646,6 1948,4 3216,0 144,4
Jizzax 516,4 605,1 762,7 1663,9 2257,8 119,8
Qashqadaryo 1625,1 1929,0 1943,1 2544,1 2746,7 94,6
Navoi 501,4 616,4 717,5 1895,3 1992,6 92,5
Namangan 1070,4 1330,3 1602,5 1761,8 2853,7 140,8
Samarkand 2149,6 3155,5 3259,5 4380,6 6306,3 124,8
Surxondaryo 853,3 1174,3 1573,0 2070,2 2627,7 112,3
Sirdaryo 619,2 845,7 925,9 1281,3 2116,3 145,8
1 The table is compiled by the author on the basis of publications of the State Statistics Committee of the Republic of Uzbekistan.
Tashkent 3729,1 4710,5 4553,3 6439,6 9287,8 125,1
Fergana 1857,1 2252,3 2511,5 4173,3 6213,1 130,4
Khorezm 722,6 774,3 894,8 1595,5 2035,7 111,3
Tashkent city 13553,1 17324,9 19615,3 30110,9 47514,2 137,8
Across the country 30413,1 38302,0 42185,9 63528,5 93322,8 128,6
The next steps in the construction of the BKG matrix are performed in the following order:
1. The total area of the wholesale turnover strategy is constructed using the coordinate axes. It reflects the growth rate of the wholesale turnover of the regions on the vertical axis, the relative market share of the wholesale turnover of the regions on the horizontal axis;
2. Based on the data calculated in Table 3, the wholesale turnover of the regions is determined in the strategic area;
3. The coordinate axes determine the growth rate of wholesale turnover of regions and the average values of relative market share. The area of the wholesale turnover strategy of the regions is divided into 4 squares by drawing perpendicular lines from them. The BKG matrix is constructed. An overview of the BKG matrix is shown in Figure 1. As a result of the analysis and evaluation of the built matrix, decisions are made on the wholesale turnover of the regions.
Such decisions can be made on the basis of the volume and composition of the wholesale turnover of each region.
Each of these 4 squares requires different approaches in terms of financing the development of wholesale trade and developing a wholesale trade services strategy.
M.GT. high IV. Question marks I. Stars
BY C.
III. Dogs II. Cash Cows
less
-►
less high RM.S.
Figure 1. General view of the BKG matrix.
"Stars" is a conditional designation of the regions where wholesale trade is developing, which is a fairy tale in the industry. The benefits of the "stars" are very important. But at the same time, further growth will require significant financial resources. Hence, the main goal of a marketing strategy is to maintain and strengthen leadership. It may be advisable to improve wholesale activities, strengthen marketing activities, wide distribution, etc. However, as the network slows down, the "star" becomes a 'milking cow'.
"Cash cows" are usually referred to as relatively mature, well-developed, and leading regions in a shrinking network. If the sale is in a stable condition and has passed the period of capital expenditure, the profit from the sale will still be more than necessary to maintain its market share and will be used to develop and maintain other wholesale organizations. The main marketing activities are usually the provision of sales channels, advertising, price discounts, promotion of repeat purchases.
The "Question marks" are areas in a fast-growing industry consisting of manufacturing, industry, retail and a small number of consumers. The market share is not large. The task of wholesale enterprises is to find sources of investment and ensure development within the chosen direction. Options for the strategy, such as finding new sales channels and increasing the cost of moving the product, lowering the price, can also be an effective, exit option from the market.
"Dogs" are areas with a very small share in a shrinking market. The "dog" often refers to areas where wholesale turnover lags behind other areas, or areas that are costly and have little growth potential. Options for strategic decisions include price reduction and reduction in service volume, profit through simplification, exit from the market.
The analysis by the BCG method allows to determine the place of wholesale trade in the portfolio of the economy, to predict future strategies. The development of wholesale organizations and enterprises requires investment. It is possible to calculate the share of almost every region in the wholesale turnover.
BKG analysis of wholesale trade turnover of the regions of the Republic of Uzbekistan in 2015-2019 is carried out on the basis of Table 2. Using the BCG matrix, we raise the issue of defining and formulating a strategy for wholesale trade services in the regions of the Republic of Uzbekistan. To do this, we can determine in advance the rate of change in the market for wholesale trade turnover in the regions of the country and the relative market share based on tabular data.
To determine the growth rate of wholesale trade turnover in the regions of the Republic of Uzbekistan, the volume of wholesale trade turnover in 2019 is divided by the average volume of wholesale trade turnover in 2015-2019.
To determine the relative market share, the total wholesale trade turnover is divided by the level of market share of each region to 100% (see Table 3). We place the BKG matrix in the coordinate plane. To do this, we place the relative market share of regions in wholesale trade turnover on the abscissa axis, and the growth rate of wholesale trade turnover of regions on the ordinate axis.
Table 3
Data for constructing the BKG matrix
№ Regions Indicators
The growth rate of wholesale trade Relative market share The share of regions in the total
turnover of the of regions wholesale turnover
regions
1 The Republic of Karakalpakstan 1,53 0,02 2,2
2 Andijon 1,46 0,03 3,7
3 Bukhara 1,65 0,04 3,1
4 Jizzax 1,94 0,02 2,7
5 Qashqadaryo 1,27 0,05 4,1
6 Navoi 1,74 0,02 3,0
7 Namangan 1,72 0,04 2,7
8 Samarkand 1,63 0,08 6,9
9 Surxondaryo 1,58 0,04 3,2
10 Sirdaryo 1,82 0,02 2,0
11 Tashkent 1,61 0,10 10,1
12 Fergana 1,82 0,06 6,5
13 Khorezm 1,68 0,02 2,5
14 Tashkent city 1,85 0,46 47,3
To build the BKG matrix of wholesale trade turnover of the regions of the Republic of Uzbekistan, we determine the arithmetic mean of the growth rates of wholesale trade turnover by regions and the relative share of regional wholesale trade turnover:
Y M GT
1,53 +1,46 +1,65 +1,94 +1,27 +1,74 +1,72 +1,63 +1,58 +1,82 +1,61+1,82 +1,68 +1,85 23,3
R.g.t =-=-=-= 1,66
n 14 14
n
Y \R.m.s
Y 0,02 + 0,03 + 0,04 + 0,02 + 0,05 + 0,02 + 0,04 + 0,08 + 0,04 + 0,02 + 0,10 + 0,06 + 0,02 + 0,46 1 _ R.m.s = -= --------------------------— = — = 0,07
n 14 14
Dividing the calculated values by the axes of the growth rate of wholesale trade turnover of the regions of the Republic of Uzbekistan and the relative share of wholesale trade turnover of the regions, we divide the coordinate plane into 4 quadrants and construct the BKG matrix. Taking the data in Table 3 as the coordinates of "Regions wholesale turnover growth rate" and "Regions wholesale turnover turnover", the diameter of the circle containing the corresponding points shows the share of wholesale turnover in total sales.
0,02 0,03 0,04 0,05 0,06 0,08 0,10
0,46
Figure 2 BKG analysis of regional wholesale trade turnover of the
Republic of Uzbekistan
Conclusion
In the BKG matrix of wholesale trade turnover by regions of the Republic of Uzbekistan, the profit from wholesale trade services is very important as part of the regional gross product of region No. 14, ie the city of Tashkent. But at the same time, further growth will require significant financial resources. Hence, the main goal of the wholesale marketing strategy in this region is to maintain and strengthen leadership. For this purpose, it may be expedient to improve wholesale services, reduce prices, strengthen advertising activities, etc.
The strategy of the "Star" level regions in the BKG matrix is to increase sales, make additional investments and strengthen them.
In the BKG matrix there are "Missing cows", which are regions 8 and 11, ie Samarkand and Tashkent regions.
Dairy cows are defined as relatively mature, stable, and leading regions in a declining sector. If the service is in a stable condition and has undergone a period of major action, of course, the profit from sales will also be more than necessary to maintain its market share and will be used to develop and maintain other types of wholesale services. In such conditions, wholesalers and enterprises strive to get the maximum benefit, and the means of achieving this are usually the design of new sales channels, price reductions, incentives for repurchase. It is necessary to expand the structure of wholesale trade services in Tashkent and Samarkand regions. In particular, in the B2B market, it is desirable to improve after-sales service, logistics services.
The difficult child in the BKG matrix is the areas in this fast-growing network with strong competition from wholesalers and little consumer support. Its market share is not large. The task of developing wholesale trade in the regions is to ensure the development of industrial production, processing industries, finding sources of
0
investment and development within the chosen direction. In this BKG matrix, Jizzakh, Namangan, Syrdarya, Khorezm, Navoi and Fergana regions are considered "difficult children". According to its location in the BKG matrix, in the future in the Fergana region may move to the "Stars" by increasing wholesale trade turnover.
Dogs are areas where wholesale trade turnover is declining in the market, with a very small share in the wholesale business. Dogs often appear to lag far behind other areas and have less growth potential. Options for strategic decisions: reduction of prices and reduction of services, profit through simplification, exit from the market.
The regions of the Republic of Uzbekistan are Karakalpakstan, Andijan, Bukhara, Kashkadarya and Surkhandarya regions in the BKG matrix of wholesale trade turnover.
References
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