Research On The Value Analysis Of Enterprise Product Upgrading Strategy

Under the background of transformation and globalization and upgrading of China’s economy, enterprises also face the same problems. In a variety of strategic choices, product upgrading strategy is the assurance of opening up new markets, searching for new demands and sustainable development. The success of product upgrading strategy depends on whether the new product satisfies customer needs, and the value of enterprise is growing. The above is Value analysis. Statistics show that the failure rate of product upgrading remains high and the reason is unreasonable product design, unreasonable cost structure and the low customer satisfaction in the upgrading process. To sum up, it is because there is no reasonable value analysis.The existing literature about value analysis of product upgrading is mainly from the single perspective of enterprise or customer analysis, which leads to one-sided and incomplete analysis. Blue ocean strategic theory argued that value innovation can realize customer value and enterprise value, and it is the premise of optimizing enterprise cost structure and enhancing customer value. This theory says that finding potential customer value factors and thinking about customer’s needs, we can provide customers with more satisfactory products and open new market space.Based on the blue ocean strategy theory, this paper creates a framework of enterprise product upgrading value analysis. This framework takes the customer as the starting point, analyzing the influence of the potential customer value elements on customer and enterprise value, and the relationship between customer value and enterprise value. In the whole process of analysis, value factors, customer value and enterprise cost are the key dimensions of value analysis. The demonstration of the relationship between the three reflects the wide range of value analysis. So, "Customer value -- value elements -- the cost of enterprise" three-dimensional value analysis model analyzes the value influence of product upgrading strategy comprehensively. The model can avoid the increase of the cost caused by the excessive customer value and the reduction of customer value caused by excessive cost savings, which provides new methods and ideas for product upgrading. It provides a dynamic analysis for the value of the product upgrading to the enterprise and the customer, however, the results of value analysis are more important for strategic decision support. So, this paper makes "customer value-enterprise cost" matrix to express analysis process realizing unification of the process and result, and providing a more complete analysis frame for the value analysis of enterprise product upgrading strategy.