Improvement of marketing activity of coal mining enterprises in conditions of instability in demand

Olexander S. Serdiuk, Nataliia V. Trushkina

Abstract


In current economic conditions sharp fluctuation in demand for coal negatively affects the operational efficiency of the coal industry and thermal power. Given the lack of appropriate market institutions in the country the problem of instability in demand can not be solved without adjusting modes of distribution and production of domestic coal mining companies.
To increase the effectiveness of marketing activities of coal mining enterprises is considered as expedient especially taking into account their functioning in conditions of instability in demand for coal having regard to the current trends in the institutional environment.
The proposals for the improvement of distribution of domestic coal enterprises in conditions of instability in demand are developed in the article. For the purposes of the study the following methods are used: analysis, synthesis, generalization, statistical analysis. The study formation mechanism of supply and demand in the domestic coal market in Ukraine is analyzed. It is revealed that the instability in demand leads to such a negative phenomena as coal deficit and surplus. Based on the analysis of the current state of national domestic coal market, its trends and existing problems its further development is identified.
It is proved that the negative effects caused by sharp fluctuations in demand can be overcome through the syndication of large vertically integrated companies (which are both producers and consumers of coal) and individual state coal mining enterprises. The main objectives of the syndicate are as follows: determine the required amount of coal; ensure the processes of marketing activities; provide pricing policy for coal and operation of coal mines. The benefits of this partnership include: organization of uninterrupted supply of fuel to the power station; providing guaranteed sales channels for state coal mining enterprises.
In further research it is proposed to examine regulatory support of business associations on the example of the syndicate, define a set of functions and tasks of its activities, and the effect of the components of its creation.

Keywords


coal mining enterprises; energy company; marketing activity; demand; supply; coal production; instability in demand; syndicate

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References


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DOI: https://doi.org/10.15407/econindustry2017.01.065

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