Cost Leadership Strategy In The Kelon Group

With the development of about twenty years, the maturity of the home appliance industry of our country increasingly gets up. The industry profit also enter tiny benefit period after the inchoate exorbitant profits ages. Even it will drop into the abyss of the deficiency if the home appliance manufacture have a little bit the immodesty, it is certificate that the complete loss in the home appliance industry in 2001 and 2000. The home appliance in our country-----the KELON group amounts to deficiency sum 1,550,000,000 yuan in the 2001 and breaks the the industry record, the KONKA group also had the deficiency near 700,000,000 yuan in 20012. Our country succeded in entering the WTO in 2001,after it the competition of the home appliance industry will become more vigorous.The reason why make the home appliance business enterprise walk to such embarrassed situation? Certainly it have relation with the history environment of these enterprises, but more important is the strategy chosen by the home appliance business enterprise. With entering the WTO, the competition of the home appliance industry will more fierce, because the trade barrier will be canceled gradually,what is more ,the barrier of the home appliance industry will be canceled with the quickest speed, so it means that it will be a flag of other industries in our country. Then for the home appliance manufacturers how to rebuild the glorious in former days and get away from the current embarrassing situation? This paper proceedes the cost being in the lead the strategy through the research into KELON group.The paper is totally five chapter. Chapter 1 is introduction. It introduces the background,the purpose and the aim of study, and the primary research method and the way of thinking in the thesis. Chapter 2 is the theories analysis for the main strategybeing in the cost. The part mainly introduces the three basic competitions strategies. At the same time,it analyzed the advantage and the bad situation of the cost is the priority of the strategy,the cost is the priority of the strategy which realizes the prior condition. Chapter 3 is the cost is the priority of the strategy and the competitive advantage of the home appliance industry. This part studied the importance and the necessity of it that the home appliance business enterprise of our country adopt the cost being the priority of the advantage under the current vigorous environment. At the same time the paper analysis the advantage that these enterprises will obtain after them adopt the cost being the priority of the advantage. Chapter 4 is the study of the cost being the priority of the strategy that it is adopted by the KELON group. The part is the core of the thesis. First, it introduces the accomplishment of the KELON group in different period; then, it expatiates theoretically the value chain cost analysis; at last, it analyzes the reason with the value chain cost that different accomplishment of the KELON group in different period.Chapter 5 is the necessity of the cost being the priority of the strategy at home appliance industry and the other industries. The part proceeded the summary to the thesis and analysis the necessity of the strategy expansion in brief. The main contribution of the thesis is: this paper put forward a right development road-- completely put cost being the priority of strategy into practice through the investigation at the KELON group in the key that our country just entries WTO. It will make us obtain theadvantage in the competition with foreign home appliance industry.