The Impact Of Technology Sources On Corporate Profitability

The strengthening of China's scientific and technological strength has laid a solid foundation for China's high-tech enterprises.For high-tech enterprises,their patents and technologies mainly come from independent innovation and outsourcing introduction.Each of these two ways has its own advantages.In the current situation,the choice of technology sources,In a certain degree,can determine the funds allocation of the enterprises and the direction of development in the market.the choice of technology source should adapt to their development strategy.At present,there are many products of high-tech enterprises have two different kinds of prices in China and abroad,which has different effects on the performance results..In this research,I will take Lenovo Inc and HUAWEI company as examples,which are well-known in the world,have equivalent bodies and are the representative of high-tech enterprises of Chinese high-tech enterprises.I will do research on The technical sources,differential pricing and profitability of the mobile communication terminals business of the two enterprises.After comparative analysis,found that the choice of technology sources has different impacts on its cost,independent innovation is controllable relative to the business income and is without integration cost,while outsourcing introduction is uncontrollable and is with integration cost.The choice also can influence the degree of its product differentiation,the degree is higher if independent innovation is chosen.the degrees' difference make the two enterprises set different pricing strategies,the price of products with higher differentiation degree is generally higher,also foreign price is higher than domestic,the price of products with lower differentiation degree is generally lower,and foreign price is lower than domestic.Different product differentiation degrees and its pricing strategies lead to a difference in product sales between the two enterprises.Finally,technology sources influence the enterprises' profitability and competitiveness through the cost,products price,and products sales.Compared with outsourcing introduction,independent innovation is more positive in promoting the profitability of enterprises.This study is based on the current market environment and consumer demand,research the mechanism and path of the impact of technology sources on the profitability from the perspective of the mobile communication terminal business.the research results can provide reference in the choice of technology sources or the pricing of products both in China and abroad for enterprises with the same problems.