Study On Small Enterprise's Competition Strategy

In china,there are over 11 million of small enterprises,which account for more than 76% of the total number of Chinese enterprises.Healthy development of small enterprises is an indispensable factor to ensure employment,optimize industrial structure and increase the national GDP.With the rapid rise of knowledge-based economy,small enterprises are facing increasingly fierce market competition.Only by implementing a scientific development strategy can small enterprises continuously improve their core competitiveness and enhance their market value in order to survive.Reasonable enterprise development strategy should consider the internal and external environment,and with competitive thinking throughout the strategy formulation and implementation,and in this case the strategy will be conducive to its rapid decision-making to establish a clear business objectives and reflect the competitive advantage.Small enterprises are relatively limited in talent,financial resources.Many small enterprises are struggling to adapt to changes of external environment and lack the long-term development strategies,which result in the lack of rational recognition of their own resources in what the advantage of the enterprise resources are,and how should the resources be retained to contribute to enterprise competitive disadvantages.Meanwhile,the prominent mismatch between small enterprise resources and strategy is resulting in the disjointed relationship between resources,capabilities and capabilities and strategic relationships,and lead to the inability of establishment of efficient interactive relationship between enterprise resources and external environment through the strategy.Inefficient use of resources and resource strategy mismatch has even larger scale of negative impact on corporate performance in view of the inherent limitations of small enterprise resources and information asymmetry.In the process of case analysis,we find problems existing in MC Company,such as lack of awareness of its resources,and missing the clear competitive strategy which lead to the low return on production resources,insufficient utilization of advantageous resources and so on.Based on rational cognition of internal resources,the relationship between resources and capabilities,capabilities and business strategy,we take four steps to reestablish the resource allocation map of MC company,that is "reducing,increasing,removing and establishing".Through the combination of resources and competitive strategies featuring enterprises and industries,resources can be more effectively integrated into the competitive strategy of enterprises.This study has implications for small enterprises to survive in the diversified market environment with the limited resources,in how to establish effective competitive strategies allowing resources to match development strategies.