Low-cost Strategy Enhance The Competitiveness Of Chinese Paper-making Enterprises?

As an important industry, the paper industry is closely related with our national economy and social civilization. There has been excess capacity, low profit margins and homogeneous competition and other issues associated with its development. Facing the fierce competitive environment, paper companies how to improve their position in the industry, and enhance the competitiveness of enterprises, is a question worth considering.Strategic expert Porter pointed out that the basic strategy of whether to choose low cost strategy or differentiation strategy is the driving force of enterprise to gain competitive advantage. However, choose what kind of competitive strategy is more conducive to enhance the competitiveness of the enterprise, is the issue managers should take into consideration, which is the focus of this paper.This paper reviewed and summarized the literature on competitiveness of the enterprise, competition strategy, and relationships between them, considering the definition of competitiveness of Potter and Jin Bei, from a financial point of view to build the competitiveness indicators systems. Based on the2007-2011listed companies in paper industry as the research object, using factor analysis, respectively to extract the competitiveness factor and competitive strategy factor, and finally build the competitiveness of enterprises and competition strategies regression model. The results showed that:(1) No matter which specific strategy enterprises take, differentiation and low cost strategies can be brought close upgrading to the competitive level.(2) For no apparent strategic orientation of the company, namely,"caught in the middle" type of relatively low competitiveness of enterprises.(3) For non-state-owned enterprises, equity centralization on competitiveness impact is positive.(4) For state-owned enterprises, the state-owned background to a certain extent to improve enterprise competitiveness, but when the ratio exceeds30%state-owned, the higher proportion of state-owned holding, the more damage competitiveness.