The Study On The Enterprise Strategy Choice Between The Standardization And Differentiation

With the rapid development of science and technology and the accelerating process of the economic globalization, the technical level is increasingly becoming the key to competitiveness and demonstrates by the more diversified. The standard is born in such a background, and has been the indispensable factor of international economic and technological cooperation and competition. Many enterprises are actively working to promote their own standards, with a view to achieving competitive advantage. However, the core of the standard is unity, which is the opposition of the differentiation .The standardization of products will reduce the difference, and also set restrictions of the formation of differentiation. The enterprises lost profit of differential production in the promotion of their own standards. Standardized production can help the enterprise receive royalties, increase their profits, and on the contrary, differential production can help it enhance the value of their products by relying on his technological advantages, and access to good quality and the competitive advantages superior to his opponents. So, high technological enterprises are facing the strategic choice, which is the implementation of a standardized production strategic or the implementation of a differential production strategic. It relies on the profit, which to a large extent depends on the level of skill.What often used to analyze differentiation is the Hotelling model. But the traditional Hotelling model has defects: it was based on the assumption that different enterprises had the same technical level, and overlooked the importence of technical factors. This paper will regard technical level as variable and introduce it to the Hotelling model to analysis the profit of high technological enterprises in the circumstances of different strategies. So, we can get the optimal choice as well as the relationship between the level of technology. Finally, this article will put forward policy which is based on an analysis of the actual situation and conclusions in the hope of providing a theoretical support for enterprise.