Research On Relationship Among Innovation,Competitive Strategy And Performance

Based on the complicated economic environment,innovation plays an important role to help enterprises which achieving competitive strategies.In order to gain a lasting advantage of business competition,enterprises must formulate appropriated strategic plans according to the development trend of the industry.To some extent,value is determined by competition strategy,value creates innovation.Attaching importance to the integration of competition strategy and innovation will be able to help enterprises growing rapidly in the industry.Therefore,it is significant for enterprises to study the relationship between competition strategy,innovation and enterprise performance.Bio-pharmaceutical industry is a strategic emerging industry related to national economy and the people's livelihood.For a high-tech enterprise,the lack of innovative ability,especially the failure of effective integration of innovation and competition strategy is one of the main problems facing enterprises in the long run.Enterprise J built a relatively complete industrial chain as a bio-pharmaceutical listed company,though it has the independent ability to research special drugs,it still faces to various problems due to the unfulfilled combination of competitive strategy and innovation,such as low innovation efficiency,low corporate performance and other issues.Therefore,this paper chooses enterprise J as the research object,aiming at the enterprise two pharmaceutical sector(Department of new drugs and generic drugs Department)its problems,tries to reveal the innovation strategy and competitive strategy integration impact on corporate performance.Enterprise J apply annual report from 2011-2016 and the financial statements as research basic data,using the general strategy theory of Potter and its relationship with innovation to analysis the present situation of enterprise innovation and competition strategy,and the current management situation of Enterprise J based on the development of bio-pharmaceutical industry.As the research shows that: First,although the competition strategy has been established,it has not matched with its innovation strategy,resulting in the slow transformation of enterprise innovation results,resulting in its competitive strategy unable to win sustainable competitive advantage for enterprises.Second,generic drugs authority shall take technology innovation and cost leadership strategy integration,through technological innovation of generic drugs to the maximum extent,reduce the production cost,so as to gain a competitive advantage,improve enterprise performance;Third,the new drug department should integrate differentiated strategy and product innovation strategy,innovate products and innovate products,and update and enrich their product chains to make products differentiated and competitive advantage.In a word,this paper provides the feasible countermeasures and suggestions on how to establish the relationship between the competition strategy and the innovation strategy of J enterprises to improve the performance of the enterprises.That is to say,the two pharmaceutical sectors of J enterprises should have differentiated development and implement different competitive strategies and innovative strategies respectively,so as to enhance their potential performance.