The Study On Enterprise Competition Strategy Based On The Analysis Of Financial Statements Of The Listed Company

In the fierce market economy, the option of competitive strategy and competitive strength areclosely related, and the competitive strategy needs the support of financial data. Financial dataanalysis can make competition strategy more rational, in order to make the choice of competitionstrategy more accurate. According to the Xinhua news media as the analysis object, Xinhua newsmedia is the first listed company in the publishing industry, but along with the market competitionintensifies, Xinhua media competitiveness goes from bad to worse, market competitor is graduallycatch up with news media,some enterprises even more than the company. This paper uses both thetraditional competitive analysis model and analysis of financial statements. Firstly, the Potter’sfive-force model is used to analyse the structure of competition in publishing industry. Through theanalysis of industry competition, makes media Xinhua understood themselves and their competitors,undersood their competitive position in the industries. Secondly, taking Xinhua news media and itsrival northern United publishing media about2010,2009and2008three years of financialstatements as the basic research materials, using financial statement analysis tools on theirrespective financial quota to make a total compretitive analysis, grasping the Xinhua media,solvency, asset operation ability, profitability, cash flow situation and development ability andexisting problems, then sums up the company’s financial capacity, points out that the company hasfinancial problems and puts forward some reasonable proposals. Last but not the least, integratedthe qualitative and quantitative results which provides by model and financial statements’s analysis,the next is to provide information support for the enterprise managers and decision makers, so wecan conclude that the enterprises can choose the competitive strategy for enterprise’s development,and select the best strategy to guide the direction of development in the market, gains a competitivestrength and to enhance market competition ability.