Study Of Combinated Strategy On Low-Cost And Differentiation

Since Porter put forward the predication of "stuck in the middle", the discussion that whether the low-cost strategy and differentiation strategy could be compatible has been controversial. As technology makes progress, economic integration accelerates, and personalized demand increases, competition intensity of every industries is significantly enhancing, and the corporate operation environment becomes increasingly highly dynamic and uncertain.For most of enterprises, low-cost has become a necessary rather than a sufficie-nt condition for business survival.And it is very difficult to maintain its differentiation advan-tage for winning competition relying on the differentiation strategy.So facing on the new oper-ation environment, it is difficult to rely on the single pure strategy to gain competitive advantage and development,and the combinated strategy becomes an imperative choice on competitive strategy. There is a theoretically and practically valuable question:whether low-cost strategy and differentiation strategy could be realized and what is the way about the combination under the background of new era?But making a general survey of the existing studies, while most scholars paied attention to the direct relationship between pure strategy, there is little research about the connotation of the combinated strategy,the relationship between combinated strategy and enterprise compete-titive advantage,and the process on combinated strategy formulation and implementation me-chanism.In view of that, this article through the literature review and theoretical research, clarify the dialectical relationship between low-cost strategy and differentiation strategy, puts forward the implementation strategy of two typical modes, and around the combination mode of combinated strategy, study its relationship with the inherent logic of enterprise competitive advantage.Finally, combined with the case method, discusses the process of mechanism to choose and implement the combinated strategy.This pepaer ending up with the following main conclusions:first, low-cost strategy and differentiation strategy are two absolutely opposite strategy types, while they are also combined in a relative unity.Second, compared with the pure strategy, successfully implementing the combination of strategy can obtain more competitive advantage that is difficult to imitate, including better meeting the diverse needs among customers, strong flexibility and adaptability facing uncertainty, and "multi-point interaction" advantage.Third, the combination of strategy is driven by external environment features, enterprise organization features, and entrepreneur ship. And entrepreneurship plays a dominant role for the combination of strategy. Fourth, successfully implementing the strategy of combination needs a proper arrangement of organizational mechanism, in order to reduce or eliminate the "incompatible factors" on the two basic strategies and make effective utilization of the associated benefits.Above conclusions show that the possibility and necessity of combination of low-cost strategy and differentiation strategy in the new era. The study enriches the connotation of combinated strategy and its relationship with competitive advantage. Through the process analysis of choosing and implementing combinated strategy based on enterprise case, the study summarizes the universal law, so as to provide experience to select combinated strategy and obtain competitive advantage for other enterprises.