The Research On Some Competitive Strategies For Chinese Small And Medium Sized Enterprises Under Resource Constraints

The research on competitive strategy is still become a hot topic in management study. Until today, research on how small & medium sized enterprises (SMEs), under recent economic circumstances, have to compete with large companies is still highly important as there are so many problems worthy to be studied. Based on the results of previous researches, this thesis will discuss some breakthrough competitive strategies for SMEs.SMEs are playing an important role in China's economic development. But, report shows that most of them are facing with business bankruptcy problem. The root of this problem is resource constraints that commonly happen in the area of financial difficulties, lack of human talents, and the use of obsolete machines and technologies.From competition point of view, this thesis proposes Chinese SMEs to implement some competitive strategies that fit their resource constraint's problem in order to compete with overseas and local large enterprises. These competitive strategies are Substitution Strategy, Parallel Importing of Free Riding Strategy and Strategic Alliance of Deterrence Strategy. This thesis will analyze the pre-condition of implementing these strategies, how to apply it, and so on.This thesis had some theoretical innovative values as it discussing the basic theory and the practical implementation of some breakthrough competitive strategies for Chinese SMEs. Then, based on the unique characteristic of China market competitive environment, it studies the feasibility of implementing these competitive strategies and provides some appropriate and valuable suggestions for supporting local SME's growth.Overall, this thesis is been presented in seven chapters. In chapter one, the introductory part, it discuss research background, objectives, meanings, scope, methods, and thesis structure. In chapter two, the literature review, it will systematically summarize the previous research findings on SME's competitive strategy. From the chapter three to chapter five, it will discuss the theoretical background and practical implementation of three competitive strategies for SMEs, such as, Substitution Strategy, Parallel Importing of Free Riding Strategy and Strategic Alliances of Deterrence Strategy. In chapter six, it will analyze and discuss the feasibility of conducting these competitive strategies in China market by local SMEs. In chapter seven, it will discuss our research conclusion.