Small And Medium-sized Manufacturing Enterprises, Cost Leadership Strategy Implementation

Under the current economic environment, small and medium manufacturing enterprises need implementing the cost leadership strategy. The target of small and medium manufacturing enterprises implement this strategy is not for getting more profits above the industry's average but for securing their own market share and ensuring enterprises capital flow, then these enterprises can survive and develop in the intense competition market. However, the problem is that most of the small and medium manufacturing enterprises unsuccessfully obtained cost advantages by implementing the cost-leadership strategy. One reason of the problem is limited on the awareness and implementation of the cost leadership; another is that the theory of cost leadership strategy and strategy implementation lack operation. Therefore, the business community urgently needs a scientific, rigorous, operability theory or method, it can help them to obtain competitive advantages by successfully implement strategy in the increasingly competitive environment.This paper generalized the cost leadership strategy and implementation of strategy theory, analyzed small and medium manufacturing enterprises' present situation and existence questions, and summarized reasons of cause strategic implementation defeat, factors of cause strategic implementation success and methods of small and medium manufacturing enterprises get cost advance. Reasons of cause strategic implementation defeat are lack the understanding to the strategy and the control/reward mechanism. Factors of cause strategic implementation success are suitable enterprise organizational structure, enterprise culture, strategic leadership. Meanwhile this paper contrasted strategic implementation's theories strengths and weaknesses. Most achievement of strategy implementation is theoretical, lack of operation. To change this situation, this paper suggested a method for implementing strategy-4R strategy implementation system which is based on analysis front of this paper. It constitutes by four sub-systems, they respectively are R1 (Ready) the strategy implementation management/budget program system, R2 (Responsibility) the strategy implementation post responsibility system, R3 (Review) the strategy implementation process check system, R4 (Result) the strategy implementation result inspection system. After that, aim at the reality of small and medium manufacturing enterprises in China, A very innovative strategy implementation system which called system of cost leadership strategy implementation is designed out. The system is advantageous for enterprises implement cost leading strategy. This system includes appropriate organizational structure, enterprise culture, strategic leadership,4R strategy implementation systems. Under sub-system's interaction's safeguard, the cost leadership strategy may be able to successfully implement in small and medium manufacturing enterprises. Finally, based on research of T Solar Energy Technology Co., Ltd. which can understand this company's reality, this paper proposes the consultation plan of how to implement cost leadership strategy in company. This plan gives specific guidance for the company implement cost leadership strategy.