On Strategy Of Industry Specialization Of PwC Zhongtian Accounting Firm

Since the 1970 s,the concentration of auditing markets in Western countries has gradually increased,and large firms have begun to look for new competitive strategies after fierce price competition.Until the 1990 s,large firms such as Pricewaterhouse Coopers began to focus on cultivating industry experts,accumulating industry knowledge,and auditing techniques.Although China's audit market started late and has a low degree of concentration,relevant government departments have successively issued the "Opinions on Promoting Account Firms to Be Bigger and Stronger" and "Some Policy Measures on Supporting Account Firms to Be Bigger and Stronger".The documtheent gives policy support to local firms,encourages locals to become bigger and stronger,and pays attention to cultivating auditors with industry expertise.In recent years,the wave of mergers in China's audit market has led to continuous improvement in market concentration and provided the basis for the implementation of industry specialization strategies.By implementing industry-specific strategies,accounting firms can gain bargaining power by offering differentiated products that differentiate themselves from competitors,while also generating economies of scale and further reducing audit costs.Therefore,the development of industry specialization strategy has become the main competitive strategy in the audit industry.Accounting firms with industry expertise rely on their differentiated and low-cost advantages to achieve economic returns beyond their competitors.At the same time,its development industry specialization can form barriers to entry.When the industry has market growth rate,it will further increase market share,increase industry specialization,form a virtuous circle,and consolidate its position as an audit market leader.This paper takes case analysis as the research method,selects the process and effect of implementing the industry specialization strategy by Pricewaterhouse Coopers Zhongtian Certified Public Accountants as the analysis object,and collects relevant information through the relevant literature,firstly the literature on the industry specialization strategy.A reasonable summary and summary was made to gain an in-depth understanding of the economic consequences and measurement methods of the accounting firm's industry specialization strategy,and to provide theoretical guidance for the next study.Thirdly,with Pw C Zhongtian Certified Public Accountants as a case,analyze the motivations and implementation paths of the implementation of industry specialization strategy,such as through audit resource integration,strengthening project quality control,paying attention to customer relationship management and auditing industry technology innovation.Then take the customer's total assets as a surrogate index,use the market share method and the portfolio share method to measure the degree of industry specialization,and measure the effect of implementing the industry specialization strategy from the horizontal and vertical contrast.Finally,the problems encountered in the implementation of the industry specialization strategy of Pricewaterhouse Coopers Zhongtian Certified Public Accountants,such as: strong dependence on specific customer groups,lack of planning for specialized investment industry selection,and insufficient localization of specific industries,etc.From the perspective of horizontal self and vertical competition,put forward appropriate suggestions,such as: paying attention to customer relationship management,optimizing industry expertise structure,strengthening supervision department interaction,and promoting product marketing localization.At the same time,from the process of implementing the industry specialization strategy by Pricewaterhouse Coopers Zhongtian Certified Public Accountants,we are inspired by the experience,and make suggestions on the overall strategy selection and specific implementation path of China's accounting firms,such as restructuring the organizational structure model and doing a good job of human resources.Planning and improving the international convergence of the industry and strengthening the innovation of auditing technology are conducive to enriching the audit market in China,providing empirical evidence from the “Big Four” to the development of China's accounting firms and promoting their healthy development.