The Rational Choice of Five Basic Competition Strategies.docx
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The Rational Choice of Five Basic Competition Strategies.docx
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TheRationalChoiceofFiveBasicCompetitionStrategies
TheRationalChoiceofFiveBasicCompetitionStrategies
Wenli1,LuShan2,HuangXin3
(1SchoolofManagement,HefeiUniversityofTechnology,Hefei230009)
(2SchoolofManagement,HefeiUniversityofTechnology,Hefei230009)
(3SchoolofMathematics,HefeiUniversityofTechnology,Hefei230009)
Abstract:
MichaelE.Porterputsforwardfivebasiccompetitivestrategy,butbecauseitnotdescribethelogicalrelationshipbetweeneachother.Sothesameindustrylackofsystematicharmoniousthinkinginthechoiceoftheenterprisecompetitionstrategy.Thisarticlefromthephilosophyof"YinandYang"and"Wuxing",thesystemtheoriesofituse"Comparelei"tocomparewithbasiccompetitivestrategy,establishedfortheselectionofcompetitivestrategyofthesystemmodel,andtheapplicationofthemathematicmodelaredescribed,providesaquantifiablewayofthinkingforenterprisestochoosethe5basiccompetitivestrategy.Finally,accordingtothesimulationfinaldataofnationalMBAtraininginstitutionsofthe"enterprisecompetitionsimulation"whichisclosetothereal,verifythemodelandthemethodofanalysisispresentedinthispaper.
Keywords:
"YinandYang";"Wuxing";Harmoniouscompetition;theorganizationbehavior;Strategicphilosophy
1Introduction
Fromthepointofviewofphilosophy,themethodologyofdualisminwesternphilosophycannotattachimportancetonosubstanceanddynamicproblem.Theworldfamousstrategicexperts,suchasMichaelE.Porterandotherwesternstrategicexpertsinstrategicresearch,wasalsoontheinfluenceofthesubjectiveandobjectivedualism,theyresearchalotofenterprisecompetitionandcooperationrelationshipbetweenthecases,tryingtouse"thelawofcause"typeofthinkingmodeareanalyzedanddiscussed.Becausethemostfascinatingscience"thelawofcause"inthemanagementarerarelyabletoarerevealed,mostscholarsstatisticalstudies,onlyfocusonstrongcorrelation,butlittletoanalysisthelawofcause."Phenomenoninduction-typesareclassified-causality-theinnermechanism"[1]isthementalityoftheoreticalconstruction,nowadaysitisthemainstreamwhichmanagementscholarstriestoperfecttheincreasinglyrichresearch.But,inthefaceofthemarketnowishighlycomplexanduncertaintiesoftheexternalenvironment,anddifficulttomeasureofknowledgeworkersandmanagerswhoknowsignificantboundedrationalityandcomplicatedorganizationoperationmode,makesthetraditionalmanagementwayfacingaseriouschallenge,andmanagementtheoryisstillina"jungle"condition,lackingthewayoftheofsystemtodealwithit.Manyscholars,suchasXiYoumingputforward:
theuniquesolutionofharmoniousmechanism,canprovidestrongsupportforeffectofenterprisedevelopmenttheme.Theactualharmoniousmechanismiskindofdevelopmentinaccordancewiththetheme,chooseandfollowtherulesofharmony[2].Becauseofthedifferentbackground,learningsuchideasinthemanagementoftheacademicresearch,costalotofresourcesofhuman,material,financialandtime.Savingresourcesornot,drawlessonsfromthestudyofessenceofChinesetraditionalcultureandphilosophythoughtswhichhassetupafileintheotherfieldsofvalidationandharmonioussystemtheory,thenleadintothemanagementscholars.Thismakesusthinkof"TraditionalChineseMedicine"whichhasthesamefeaturesofmanage,bothofthestudyarecomplicatedattributescience[3].ChengSiweipointedoutthat"thetrendofthedevelopmentofChina'ssystemengineeringshouldcombinedthesystemideasofancientChinawiththemodernsystemscience,furtherdevelopingthemethodofsystemengineeringandtechnology,inordertoeffectivelysolvethecomplexsystemanalysisandsynthesisproblems[3]".Humanlifesystemisalivingsystem,therearenotsure,notnumber,notcalculation,nottothepredictionsofthephenomenon,whichbelongstothecomplexsciencewhichisstudiesthecomplexityandnonlinearproblem,exploretheuniversallawofthecomplexsystemofscience.Andaimofnonlinearresearchandchaoticresearchistoseekthecomplexphenomenon,tomakethecomplexthingsbecomingsimple,tomakedisorderintoorder,allofthisneedconstructsimplemodels.The"YinandYang"and"Wuxing"ofTraditionalChineseMedicinetheoryisasimplemodel,andaccordingtothismodeltosimulatecomplexnonlinearphenomenon.Thestudyofdomesticexistingscholarsfoundthat:
themapof"Wuxing"ofTraditionalChineseMedicinecomparingwithanonlineardynamicsystemoffiveelementsofthetwoinputBooleannetworkhavealmostcompletelysimilargeometryshapeanddynamicbehavior,asaresultitcouldbedescribedasaNonlinearDynamics(NonlinearDynamics)model[4].Needtoexplanationis"YinandYang","Wuxing",includingthenosubstanceandsubstanceofphilosophy,andwiththinkingof"Xiang"--itistheonebeyondtheconceptofthinkingisTCMthinkingtoreflectnaturephenomenonandobjectessence-whichismainlybasedonnosubstance[5],intoday'sexperimentisnottofindoutoftheirmaterial."YinandYang"and"Wuxing"theoryisourcountryancientthinkersinthe"viewofYinandYang"and"viewofnatureandhumanity"andsoon.Undertheseguidanceofideologicaltheoryitgraduallyform,anddescribethedeeplawofmotionofgiantsystemofcomplexlife,asaresult,"YinandYang"and"Wuxing"theoryisoneofthebasictheoryoftoolswhichstudydeep,practical,simpleandefficientofcomplexsystem(includingcomplexsocialsystem)ofthewholemacrostructure[6].
2MichaelE.Porterputsforwardbasiccompetitivestrategy
Inthemarketeconomy,theindustryisasystemwhichhasfunctionandpropertyofself-organizationfunction,nomatterwhatcompetitionstrategythecompaniesinindustriesmaking,itsbasicprincipleisthebasisoftheirownstrengthtomeetthemarketdemandastheultimategoal.Fromthepointofviewofmicroeconomics,marketpriceandquantityoftheproductchange,alwayscomplywithsupplyanddemandbalancetothedevelopmentoftheindustryofoperation,theoptimalperformancestatusalsoshouldbeharmonious.MichaelE.Porter,tohiscompetitionconcepts,inthebookof
Overallcostleadershipstrategy-inordertoattractthecustomers,theirstrategicobjectivesrelativelyfocusproductresearchanddevelopment,andcompeteinthelowerprice;Differentiationstrategy-inalltheindustryinordertoattractthecustomers,itsstrategicobjectivesistodevelopproductinnovation,andcompeteintheproductondifferences;Focusstrategy-inagivenmarket,accordingtothebuyersofthenarrowgroup,researchinganddevelopmentandinnovationofthedifferencesinproduct,andcompeteinthedownrangeofprice.Infact,substantialdifferenceofthreebasiccompetitivestrategiesisoverallcostleadershipandDifferentiationstrategic[7],inthispointitcoincidewiththepointofTraditionalChineseMedicine"everythinghastwosides".Inthebookof
basedontheOverallcostleadershipandDifferentiationfocusstrategywhichchangefromanoddnumbertoevennumberforthecompetitionstrategy,amongthem,thechoiceformsbasedonOverallcostleadershipfocusstrategy,istoprovidetonarrowbuyersgroupswithlowcostoftheproductorservicethancompetitors;basedontheDifferentiationfocusstrategy,istoprovidetonarrowbuyersgroupswithmoremeetingthedemandofthepurchaserproductsorservicescustomizedthancompetitors[8].MichaelE.Porteralsobelievethatbasiccompetitivestrategynotbealaw,whichmeansthattheenterprisecanusedifferentways,toprovidecustomerswiththeuniquevalueportfolio,takevariousmanagementstrategywhichisdifferentwithcompetitors[7],meansthatitcanbeinfinitedivisionbetweenOverallcostleadershipandDifferentiationstrategy.Finally,MichaelE.Porterthink,thepurposeofthecompetitionstrategyistoprovidethingswhatbuyersarelookingforbetterthancompetitors,andbeatitsrival,ofwhichthemostobviousdifferenceofstrategyis5kinds:
besidestheOverallcostleadershipstrategy,Differentiationstrategy,basedonoverallcostleadershipconcentrationandbasedondifferentiationoftheconcentrationthisfourcompetitionstrategy,thelastoneis"bestvaluestrategy",itsconnotation:
throughthecomprehensivelowcostanddifferencesbetweenthepricebeingpaidtothecustomertoprovidemorevalue,usethisstrategicobjectiveisforthebuyerswhohastheconsciousnessofvaluewiththeminimumcosttoprovideacompetitor'ssimilarproducts(butinsomeirrationalmarket,takethisstrategywilllosethisshouldobtainhighprofitsreturn),andputsforwardfivegeneralcompetitionstrategychart[9].Figure1
Figure1-Fivegeneralcompetitionstrategystructure
Thefigure1shows,fivebasiccompetitionstrategiesissymbolofdifferentmarketpositions,andeachofthemisastrategicmodeinthebusinesscompetitionandmanagementmethodswhichhavenotforthesame.However,itisworththinkingabout:
whatlogicrelationshipisamongthesefivebasiccompetitionstrategies?
Ifcanusethesystematiclogicthinkingtounderstandthisrelationship,whentherationalenterprisetakestrategic,theywillconsciouslyfollowindustryharmoniousdevelopmentruletochoose"BlueOceanStrategy".
3"Comparelei"basiccompetiti
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