TRANSFORMATION OF THE COMPETITIVE ENVIRONMENT FOR REGIONAL SERVICE ENTERPRISES

This article analyzes the transformation impacting the competitive environment for Ukraine's regional enterprises specializing in computer and office equipment repair/maintenance (NACE 95.1). It addresses the stagnation and displacement these firms face in goods sales, despite overall growth in trade sectors, stemming from pressure from larger national companies (often Kyiv-based) and online retailers, compounded by varying digitalization levels.The study aims to identify the drivers of this transformation via comparative analysis of key economic indicators (sales, production volumes, value-added) across relevant industry groups: regional service providers (95.1), wholesale traders (46.5), retail stores (47.4), and internet retailers (47.91). Special focus is given to digitalization's impact and market centralization, measured by the production share of Kyiv-registered companies. Key findings reveal significantly increased labor productivity in digitalized sectors like “Trade” (wholesale) and “Internet-trade.” These sectors also show high centralization, with Kyiv-based firms accounting for over 75% of production volume, indicating concentrated economic power. A major disparity exists in valueadded within “Internet-trade,” where Kyiv firms generate over five times more v added value than regional counterparts. Interestingly, despite this concentration, “Internet-trade” shows relatively easy market entry for private entrepreneurs (reaching 75.25% sales share in 2020), likely due to online platforms and logistics.In conclusion, while digitalization offers entry points for some small players, the dominant trend is the centralization of the goods sales market, favoring Kyiv-based entities. This process displaces regional service companies from goods sales, pushing them to concentrate primarily on service provision, where competitive dynamics may differ. The research highlights the complex interplay of digitalization, market structure, and regional disparity in Ukraine's evolving economy.work.