The Dynamic Competition Of The Chinese Beer Industry Competition And Corporate Research

The Art of War emphasizes the importance of strategy to win a war. Same in the operation of enterprises, better strategies can directly help the enterprise survive, while bad ones make the enterprise fail. It's apparent that strategy is very important for enterprises. In 21^st century, we find enterprises face an environment that changes from day to day. The globalization of economy, day-by-day development of information technology, etc. all bring forward new challenges to enterprises. Under such environment, enterprises have to review and reformulate their development strategies. Only in this way, the enterprise can survive from competition. Strategic management has always been the key area for enterprise management study, while dynamic competition is the focus of strategic management. Theories about dynamic competition mainly investigate the drives for competition among enterprises, based on the actual behaviour of enterprises, and interpret the competition behaviour of enterprises, so as to help enterprises find its right strategies from the continuous competition.This paper targets the enterprises in China's beer industry, and carries out the study from two perspective of dynamic competition - Multipoint Competition and Competitive Action-Reaction. This paper starts with analysis on the current situation of China's beer industry and enterprises, comes to the conclusion from such analysis that China is the biggest country in the world for production and consumption of beer, and the volume of production and consumption of beer in China is still increasing year over year. The production of beer is positively relevant to the population and development of a country's economy. Besides, there is apparent centralization of Chinese beer enterprises. The revenue of different enterprises could go extremely opposite ways while several big enterprises control the majority of the industry revenue.Based on contingency model proposed by foreign experts, this paper follows by analysis on Multipoint Competition among beer enterprises from spheres of influence, density of market, resource similarity and relative scope of enterprises. This paper then comes to the conclusion that China beer industry has split into different types of competitors. Different beer group controls different scope, three of which have the biggest shares. We can defer from the mutual forbearance of Multipoint Competition that this kind of distribution of market share will not promote but instead will weaken the competition among the top three groups. However, the market indensity has positive influence over competition. Higher market indensity means more intense competition among enterprises in the industry. The size of the enterprises is more similar, the competition among them is less intense, and this applies particularly to big enterprises in similar size while the influence of resource similarity over competition will vary under different situation. This is reflected in the study on Competitive Action-Reaction.In the study on Competitive Action-Reaction, this paper selects eight enterprises in China's beer industry as case study, puts forward six hypothesises, analyzes and verifies 397 competition actions and 821 reactions by the eight enterprises during six years from three perspectives of influence scope, intensity of influence and action type, and draws a conclusion at the end. With the increasing influence scope of attacking actions, number and speed of responses by the defending enterprises will increase, too. Strategies usually help more enterprises to respond more quickly. Due to the speciality of China's beer industry, the study result mentioned above is different from conclusion by certain scholars and it is not a general conclusion. With the changes in the industry and further development of enterprises in the industry, this conclusion may also change. This also brings new study directions for other scholars.