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The article deals with the peculiarities of formation of competitive strategy of the enterprises of flour-milling branch of Ukraine. The paper substantiates the necessity to determine the stage of the life cycle of the industry in the process of formation of the competitive strategy. The market analysis of flour-milling industry of Ukraine is carried out on indicators: size of the market, commodity nomenclature, buyers and their behavior, raw material base and intensity of competition. The paper determines that the flour-milling industry of Ukraine is at the stage of growth and has a number of tendencies, such as: decrease in sales volumes, increase in export volumes, standardization of products and average level of competition intensity. The following stages of the life cycle of the industry are studied: introduction, growth, maturity and decline. The paper proves the necessity of distinguishing the stage of renewal in the life cycle of the industry, which is implemented on the basis of modern technologies. The practical significance of the research consists in developing recommendations for choosing a competitive strategy of the flour mill enterprise in accordance with the stage of the life cycle of the industry. The enterprises of the flour-milling industry of Ukraine, in accordance with the stage of the life cycle of the industry are recommended to form competitive advantages on the basis of the concept of "lean production".
