Study On Choice Of Enterprise Competition Strategy Based On Profit Quality

Profit is the main index of enterprises achievement evaluation, whose quality can reflect the operating results of an enterprise within an accounting period more scientifically and comprehensively. The competition strategy is a strategic choice to build core competitiveness and to keep its advantage. Both of them interact each other under normal operating condition:the correct strategy decides the operating result and brings the high profit quality. In contrast, the profit quality also can reflect the choice of strategy. How to unify the profit quality and the competition strategy and realize their interaction are the main contents of the paper. It means that examining the choice of competition strategy through profit quality provides the finance analysis and the correct strategic decision with a brand-new methodology of analysis.The enterprise profit quality is its analysis object. On the base of studying the relative theories and achievements, the article illustrates the basic methodology of analysis about how to examine the choice of competition strategy based on profit quality. It analyzes the profit quality through the formation of profit, profit structure and the result of profit. It also discusses the feasibility of the methodology of analysis from the views of technology and method, and it refines the basic mode of examining the choice of competition strategy based on profit quality. The paper try to discuss the choice of the business competition strategy in different situations through management activity and investment activity by using the theory of PLC, and the mode realizes the good interaction between the profit quality and the competition strategy. To take Wuliangye Yibin Co.Ltd for an example, the paper analyzes its profit quality and competition strategy, it also probes tentatively for its future and provides a convincing evidence for that basic analysis mode. At last, the paper reviews its innovations and shortcomings and offers the methodology of analysis and the good reference in order to analyze and solve the problem.