Empirical Research On The Enterprise Competition Strategy And The Cost Stickiness

The implementation of profit risk and cost efficiency will be considered when enterprises make the strategic decision. Make the enterprise profit maximization while cost minimization. Eliminating unnecessary costs is an important content of the implementation of enterprise competition strategy. Enterprises’ continuously adapting to the market, meeting the competition strategy with technical standards, and constantly improve the internal of various elements, is the essential factor of enterprise to survive the explosion in knowledge economy era. The relationship between enterprise interior cost stickiness and competitive strategic is particularly important, therefore, it is necessary to study the influence of cost stickiness of competition strategy.This paper use annual data of China’s Shanghai and Shenzhen A shares’ listed companies from 2009 to 2013, study the influence of different enterprise competition strategy on cost Stickiness and difference. Through the study, it is found that China’s listed companies’ cost of doing business, during costs, sales costs and management fees all show cost stickiness, different competitive strategy choice’s effect on cost stickiness are different, even influence of homogeneous competition strategy on cost stickiness also has difference. Different implementation strategies have important effect on cost stickiness of business cost, during costs, sales costs and management fees. Differentiation strategy has a weakening effect on Business Cost Stickiness; when operating income declined, and the management cost levels decreased,which may be caused by management’s self-interest or other reasons. Implementing of low cost strategy have negative effects on operating cost, period expense, management cost stickiness, but the sales cost’s reflect not significant, probably due to the low cost strategy expenditure to sales cost are not instability; affected by the factors of industry, low cost strategy’s effect on period expenses and administrative expenses not significant, differences among industry is larger. The research’s conclusion deepen the study of enterprise strategic management and the theory of cost management, especially with certain theoretical research on cost behavior on management accounting.