Firms' Competitive Strategies. Factor Endowment Differences

In classical comparative advantage theory, the initial endowment allocation contributes to the division of work and participation among economies and is an important determinant of trade. Competition theory which is based on this further notes that the initial comparative advantage can not be equated with competitive advantage. In according with the macro-economic system, this constructs the framework of international trade theory. When taken into micro-economic interaction, competitive strategy of enterprises come into being.Contemporary Chinese Economy is so diversified and can be analyzed from various perspectives. In regional structure, it is faced with gradient development and regional opening differences. From the industrial point of view, there is another level that traditional industries change and new industries rise. Different dimensions of various systems form a market economy with Chinese characteristics.Different industries and enterprise organizations have tremendous variation in lines of evolution and change. This article focuses on wine which is embedded in alien Western culture, analyses regions with different advantages under the competitive advantage strategy, and finally makes an understanding of performance of enterprises with different endowment.Firstly, review of the relevant research at home and abroad is given, and global and China's wine industry features and endowments configuration will be introduced. Based on this, the author classify two major producing areas with different endowments. Then author comparatively analyses of different enterprises in different competitive strategy and ultimate performance differentiation. At last, conclusions of this essay and recommendations is offered.