Research On Competitive Advantage Promotion Of Engineering Manufacturing Enterprises Based On Value Chain Integration

With the rapid and steady development of China’s economy and people’s risingincome levels, China’s Engineering manufacturing industry develops fast, which hasmade remarkable achievements, and gradually developed into the leading industry.However, China’s Engineering manufacturing enterprises mainly engaged in theproduction and manufacture of Engineering parts, and generally do not grasp the coretechnology, although Engineering outsourcing policy of manufacturers in Europe andAmerica and other developed countries can get some technical support to engage inrelatively high quality of manufacturing activities by participating in internationaldivision of enterprises, but at the same time, the independence of our country’sEngineering industry has been weakened, lose their autonomy in the core technology,and then controlled by others.This article is divided into six parts, the first one is the introduction part, itdescribes the research background, significance, research framework, researchmethods and the possible innovations and deficiencies. The second part mainlyintroduces the value chain and competitive advantage theories, analyses of MichaelPorter’s traditional value chain theory in detail; it pointed out that the value of thebusiness activities can be divided into two parts: one is basic activity; the second is asupplementary activity.Basic event is directly organized by the transformation frominput to output, delivery, after sales service and other specific jobs, which are creationin essence of the product or service, including internal logistics, manufacturingoperations, external logistics, marketing and after-sales service; supplementaryactivity support basic activities, mainly including enterprise infrastructure, humanresources management, technology development and procurement. It points out thatthe industry’s competitive advantages include cost advantages and differentiationadvantages, and specific analyses how value chain integration’s four ways(contraction of the value chain, value chain extension of the value chain and businessalliances to expand) form company’s cost advantages and differentiation advantages.The fourth part analyses current situation of Chinese Engineering manufacturingvalue chain and competitive advantage status, and puts forward ways and measures toimprove their competitive advantages in base of it. The ways to obtain the costadvantages are: controlling the cost factors, reconstructing enterprise value chain aswell as other companies strategic alliances that formed on the value chain; the ways toaccess differentiation advantages are: increasing the source of uniqueness, creating the unique, reconstructing the value chain structure, a clear position on the value chain,the contraction of value chain and the integration the value chain level; six specificmeasures are as followed: First, cultivate their own core strengths, second, optimizeits own value chain, the third is to promote integration of the upstream anddownstream on value chain, the fourth, reconstruct company value chain, Fifth,enhance product innovation and process innovation, sixth, do well the supportingwork that matched value chain management. Part5will regard the Xugong andZoomlion as examples, for example, inspect the measures that the thesis proposed toenhance the Engineering manufacturers competitive advantages, so that the paper canbe more close to reality, more referent. Finally, conclusion, which reviews and sumsup main points of the full text, and further research papers are to be discussed.