An Empirical Research On Overall Cost Leadership Strategy Of Private-owned Manufacture Firms

Private manufacturing enterprises that have gradually become the dominant force inmanufacturing industry play an important role in the national economy. The implementation ofstrategy is related to the growth and expansion of an enterprise. China’s private manufacturingenterprises mostly adopt overall cost leadership strategy. With the change of economic environment athome and abroad, the study of the cost leadership strategy enterprises’ survival and development, is ofgreat significance.China’s private manufacturing enterprises exist the phenomenon such as the widespread failuremanagement, financing difficulties, lack of talents, backward technology, and fuzzy cultural concepts.And these entrenched disadvantages make survival gap of private manufacturing enterprises morenarrower. Porter’s cost leadership strategy provides a theoretical guidance for the development ofprivate manufacturing enterprises. The paper surveys the private manufacturing enterprises whichimplement the strategy of cost leadership by questionnaire, collects data to carry out the empiricalanalysis and research. Firstly, the paper discusses the characteristics and current status of privatemanufacturing enterprises in our country. Then the paper analyzes characteristics of privatemanufacturing enterprises in China after the cost leadership strategy through empirical researchmethods in-depth analysis. Empirical analysis concludes:(1) cost leadership one in privatemanufacturing enterprises is different from those which don’t adopt cost leadership strategy in profit,cost and pricing, and product positioning and product differences;(2) cost leadership and not costleadership in private manufacturing enterprises in the market competition degree and actual rival haveno significant difference;(3) among private manufacturing enterprises adopting leadership coststrategy, the cost is almost the same and the price gap is small;(4) different enterprises carrying outthe strategy of cost leadership in product status have different characteristics;(5)the characteristics ofprivate manufacturing enterprises in different sectors carrying out the strategy of cost leadership havehigh similar degree.Through questionnaire survey and empirical analysis of implementing cost leadership strategy, thepaper summarizes the performance and characteristics. Then the paper puts forward countermeasuresand suggestions of private manufacturing enterprises to keep the competitive advantage. Enterpriseshould choose the competition strategy according to its environment, and timely adjust strategy to maintain a competitive advantage; manufacturers should identify the competitive strategy ofcompetitors and other information used in combination; manufacturing enterprise shall be based onlow cost innovation to get innovatively low cost, to gain a competitive advantage.