Іntroduction of Diversification Strategies Into Activities of Agricultural Business Entities as an Innovative Process

Abstract

The article substantiates the introduction of rational changes in the specialization of production in agricultural enterprises and their sales orientation in terms of increasing the supply of agricultural raw materials in the context of entering new commodity markets and improving economic efficiency of core activities using commercial and integration tools to implement innovation strategies. investment potential. It is established that diversification, in general, in economic theory is considered as a means of improving the financial and economic performance of production and commercial activities of enterprises. It is determined that the key areas of diversification of production as a basis for innovation potential in agricultural enterprises are: development of own processing of agricultural products in order to create greater added value within the enterprise and operation of processed products in target markets with less complex barriers to entry; managing the structure of the product range by developing new types in order to minimize price and sales risks; entering the markets of agro-technological services in the presence of surpluses of agricultural machinery and equipment for their provision in order to stabilize the financial situation and, thus, ensure self-investment. It was found that only the effective development of innovation of agricultural enterprises allows to adapt to constant changes in the environment, and the introduction of diversification is one of the planned methods to ensure the appropriate level of competitiveness and financial stability in the constant market transformations. When choosing diversification strategies, companies will focus on success. However, if the management system is not aimed at mastering modern and innovative technologies that will allow to produce new products of higher quality at the same time with the lowest cost, then over time there will be risks of weakening market positions in target markets. Keywords: diversification strategy, agrarian business entities, innovation process, innovation and investment potential, competitiveness.