Features of the Competitive Strategies of Project-oriented Organizations by the Example of Digital Agencies in the Communication Services Market

Information technology and globalization are rapidly transforming the business landscape, and the pace of change is constantly increasing. Such conditions require companies to be flexible, adaptable, and quick to make decisions. The dynamics and complexity of the economic environment contributed to the emergence of project-oriented organizations. The purpose of this work is to identify the features of competitive strategies of project-oriented organizations and the factors that influence the formation of competitive strategies of project-oriented organizations on the example of digital agencies in the market of communication services. The objects of the study are project-oriented organizations (digital agencies) in the market of communication services. The subject of the research is the competitive strategy of project-oriented organizations (digital agencies) in the market of communication services. Research objectives: 1. Study the factors influencing the competitive strategy and the features of project-oriented organizations based on the analysis of the existing literature; 2. Conduct a qualitative study based on semi-structured interviews with representatives of project-oriented organizations in the communication services market; 3. Analyze the digital agencies under study using Porter's Five Forces model and Moore's product life cycle model; 4. Identify the specific features of the competitive strategy in the digital communications industry, as well as the factors that influence the formation of competitive strategies of project-oriented digital agencies in the market of communication services. To identify five competitive forces we have used Michael Porter's structural analysis of the industry, and we have analyzed products of the companies based on Moore's product life cycle model. The data was collected by conducting 5 semi-structured interviews with employees of digital agencies who are directly involved in the formation of a competitive strategy. On the basis of modern Russian and foreign information, the main factors influencing the formation of a competitive strategy of a project-oriented organization, as well as the distinctive features of project-oriented organizations in comparison with traditional functional organizations, were identified. The study revealed that the main forces in the digital agency market are customers and industry competition. Therefore, agencies have a different set of competitive advantages, which ensures the implementation of a differentiation strategy. The study also revealed that the company's competitive strategy depends on the products and services and, therefore, on the portfolio of projects that the agency implements. The competitive strategy is formed based on the stage of the product life cycle, since it determines the sales strategy and sales style, as well as the person who makes the decision on cooperation on the part of the client. This study complements the existing literature on competitive strategies of project-oriented organizations and addresses existing research gaps. This research can also contribute to further exploring the competitive strategies of project-oriented organizations, as well as extrapolating the results to other markets.