It was natural that Chinese companies need not competitive strategybefore reforms and opening-up. Because competition was not exist underplanned economy and all things were planned by the government.However, after reforms and opening-up, especially in recent ten years, theopening of market, globalization of economy and success of joining theWTO make China enter into rough sea of world economy. Chinesecompanies also face up to fierce rivalry. CPA firm is a special enterprise organizational form. On one hand, itappeared in market economy that developed by certain stage. As aprofessional intermediary's organization, CPA firm filled in the blank gapcame from separation of ownership and management right. On the otherhand, CPA firm exists in market economy environment and it also pursueprofit. Just as all other service trades, in current constant changeturbulence audit market, all CPA firms join in the competition and thesmoke of gunpowder billows. CPA firm has to use competitive strategiesto strengthen the advantage in order to survive in the rivalry. From theviewpoint of Industry's Economics, individual behavior and company'scompetitive strategies are related to the market structure that determinesenterprise's behavior and competition situation and performance.Therefore, through studying audit market in China we can reveal thecompetition situation. On this basis we seek competition strategies ofChinese CPA firms. The whole thesis is divided into four chapters. In chapter one, it begins with competitive strategy theory, whichinclude the meaning of competitive strategy and its strong position inmarket economy. In addition, this chapter introduces strategic planningand management tool: Five Force Analysis of Porter and SWOT Analysisof Andrew. The author uses these two tools analyze CPA trade and makesCPA firm's basic competitive strategies. In order to make competitivestrategies suitable for CPA firm, it has to analyze the market. So theformulation of competitive strategies is market-oriented. The chapter two introduces foreign CPA firms' competitive strategies.Western audit market has developed for four hundred years. Nowadays,the main auditors in foreign audit market are the "Big Four", but a lot ofmedium and small accounting firms coexist with "Big Four" in themarket. The author introduces one case of a foreign big CPA firm,compares audit market which foreign medium and small accounting firmsface up and compares their competitive strategies. Why these accountingfirms can survive and develop in the fierce rivalry is that they formulatecompetitive strategies that suitable for their strength and the market. In the first of chapter three, the author analyzes China audit market.We can see that China audit market is dispersive competition market. It ishere to behave that the concentration ratio is low, there is no difference ofservices one another, CPA firms' scale are small, foreign capitals CPAfirms have come into China audit market. Then the author analyzescauses of above: Auditors' have no strong professional skill and businessexpands ability. Audit demand is insufficient. The government intervenethe audit market. Meanwhile, the author finds that how CPA firms deal with themarket competition. They have already realized the market was cruel andmerciless and have taken a series of measures to tackle the marketcompetition. The competition was originally the most effective way tosolve market efficiency. However, those competition measures belong tothe low aspect, because China CPA firms did not stand in the height ofstrategy formulate corresponding competitive strategies but fell into theacts and efforts for expediency, disrupted the market and damaged theimage of the certified accountant trade. It is high time that madecompetitive strategies for CPA firms. In the last chapter the author analyzes competitive strategy choice of China CPA firms. To big, medium and small accounting firms, they have different advantages, weaknesses, opportunities and threats, and then they have different corresponding compe... |