The Study On The Relationship Between Competitive Strategy And Corporate Performance Of The Strategic Emerging Industries

Competition has become the key to the success or failure of an enterprise.If an enterprise gains advantage in the competition,the enterprise can take a favorable position.After Porter put forward the basic competition strategy in 1980,experts and scholars from home and abroad began to study the competition strategy.Due to the selected different industries and enterprises,and different methods used and the indicators used,there is still no consistent conclusion as to which kind of competitive strategy an enterprise can achieve the best operating performance.In 2008,the financial crisis hit the economies of all countries heavily.All countries started to cultivate new economic growth points so as to seize the strategic high ground of industrial development.Therefore,the strategic emerging industry becomes the direction for the future economic development of a country.On January 6,2017,the General Office of the People's Government of Henan Province issued the Circular of the General Office of the People's Government of Henan Province on Printing and Distributing the Development Plan for the Strategic Emerging Industries of Henan Province during the 13 th Five-Year Plan,in which the strategic Emerging industry in the six major areas of the important task.Combining the emphasis of the state and Henan on the development of strategic emerging industries,it is of great significance to study the strategic emerging industries and seek the best competitive strategy for the economic development of Henan Province.This article firstly introduces the existing research results of strategic emerging industries,and then sorts out the relevant theoretical knowledge,puts forward three research hypotheses,establishes the relevant models,and uses multiple regression analysis methods,finally draws a conclusion.By searching the annual reports of listed companies,a total of 190 effective samples of listed companies in Henan Province during 2014-2016 are obtained.After rigorous screening,a total of 155 effective samples of strategic emerging industries are obtained.The performance of measures used in the model are return on equity(ROE)and main operation margin(MOM),as well as Tobin's Q(Tobin's Q).The measure of cost leadership strategy in a competitive strategy is the relative cost of primary business Rate(CLS),the measure of differential strategy is the relative proportion of research and development expenditures(DS).This paper mainly studies Porter's two basic competitive strategies on the business performance.Three results are obtained:(1)The implementation of cost leadership strategy in strategic emerging industries can bring about significant growth in all three business performance indicators of the company.(2)The implementation of differentiation strategy can bring about significant improvements in MOM and Tobin's Q,but it can't significantly improve ROE.(3)The impact of operational performance brought by the implementation of cost leadership strategy is higher than the differentiation strategy.That is to say that the choice of cost leadership strategy is superior.Finally,combined with the actual situation of Henan Province,we develop constructive comments for the strategic development of new industries.