The relevance of the topic. Competent diagnostics of the vulnerabilities of the competitiveness enhancement mechanism is mandatory to ensure the high competitiveness of an industrial enterprise. Goal. Development and implementation of an effective and efficient algorithm for diagnosing elements of the mechanism for increasing the competitiveness of an industrial enterprise operating under conditions of import substitution. Methodology. The methods of system analysis and algorithmization are used in the work. Results and conclusions. The designed algorithm for diagnosing problematic elements of the competitiveness enhancement mechanism makes it possible to realistically determine which elements require improvement and which resources are needed for this. The discovered problematic elements in the process of diagnosing this mechanism serve as the basis for creating a strategy for their improvement and for increasing the productivity of any industrial enterprise operating under conditions of import substitution. The scope of application. Industrial enterprises of various organizational and legal forms of ownership.