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MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
The need to revise the main approaches to ensure the competitiveness of trade services 
enterprises in our country is mainly due to the unprecedented high share of foreign enterprises in the 
domestic services market. 
Today, human interests are above all else. Trade has important social and economic 
importance in each region and country as a whole. So, trade is a type of business activity that is 
closely related to buying and selling goods and providing services to customers. 
Retail service is the result of direct interaction between the seller and the buyer, and is a private 
activity of the seller to satisfy the demand of the buyer in the acquisition of goods for use, which is 
not related to the business activity under the sales contract. 
Materials and methods.
The American scientist Porter developed the concept of competitive 
strategy in 1975-1980 during the period of declining growth in most sectors of the economy. The 
focus of the enterprise is not only customer satisfaction, but also competitive forces in the market. 
Porter's five driving forces of competition are given in the diagram below. 
Figure 1. Competitive forces. 
 
According to Michael Porter's theory, the development of the industry and the achievement 
of economic competitive advantage at the world level are related to the production of innovations and 
require the innovation of technologies in the industry. In this regard, the use of these technologies 
requires us to see the direction of their management in terms of clusters. In this case, as a result of 
making radical innovative changes to the technology of product production and by managing these 
technologies, it creates an opportunity to achieve a high level of development in the industry. 
Also, M. Porter distinguished the types of competitive forces and strategies, taking into 
account companies that produce products similar in terms of characteristics and functional goals, that 
is, substitute goods, and determined that the level of competition in the industry depends on five 
competitive forces: 
- internal struggle of competitors in the market; 
- risk of new competitors; 
- risk of emergence of substitute goods; 
- bargaining power of buyers; 
- bargaining power of suppliers. 
The analysis of Porter's five competitive forces model makes it possible to identify the 
strengths and weaknesses of the enterprise, to determine the areas where strategic changes will give