The Impact Of Multi Market Competition On Enterprise Management

With the emergence of the diversification of the large enterprises in China and the different demand in various regions,the domestic leading enterprises often operate in many regions and compete with their opponents,thus forming a multi market contact.Edward(1995)proposed the idea of multi market contact for the first time.He believes that when companies meet in many markets,they will hesitate to produce fierce competition and avoid retaliation in other areas,that is,multi market connections will reduce the competition among enterprises.As the important agricultural production data of our country,chemical fertilizer has a great effect on the development of agriculture and the food security of our country.However,because of the high transportation cost of chemical fertilizer,this paper thinks that the local farmers will choose and buy locally,and then a monopoly is formed in the region.At that time,oligopolistic enterprises will collude with each other to grab higher profits.The main purpose of this paper is to study the impact of multi market competition on the operation of China's fertilizer industry by constructing the multi market competition index of China's fertilizer industry.Based on the empirical research of fertilizer industry,it is found that there is multiple market relationship in China's fertilizer enterprises.By means of a direct regression analysis of the multiple market competition index and enterprise addition rate,we believe that multi market competition has reduced the competitive strength of China's fertilizer industry.After the study on the enterprise investment growth rate that enterprises in multi market contact,each other to collude to reap higher profits,when the enterprise is to share the profits will reduce investment,this paper through empirical analysis results show that,enterprise market competition index and investment growth rate is significantly negative correlation.Finally,this paper continues to explore the strategic behavior that enterprises have adopted when they are in multiple market connections.The empirical research shows that when the multi market contact more enterprises,the output value of new products is higher.Finally,this paper holds that China should continue to strengthen the enforcement of "anti-monopoly law",the central level based,supplemented by local law enforcement agencies,in cooperation with the masses of the people,strengthen law enforcement efforts,and constantly learn from mature foreign skills,in order to achieve efficient enforcement of information disclosure,target.In addition,we should follow the pace of the supply side reform in our country,remove the excess capacity of the industry and reshape the new pattern of China's chemical fertilizer industry.