Analysis Of Industrial Competence Factors

With the gradual penetration of economical globalization, the rapid development of new high-technology and the appearance of global buyer's market, the internationally industrial competition grows intense, which becomes the decisive factor of the international economic position for a country or a region. Therefore, the academic research of industrial competition has been involved hi many countries and has achieved some primary results since 1980s, especially after 1990s.Michael E. Porter, the professor of Harvard Business School in USA, is the initiator for the theory of industrial competition. He published 'the Competitive Advantage of Nations' in 1990, in which he concluded six major factors for industrial competition with many demonstrative analysis of more than one hundred industries in ten countries. The factors include elements, demands, relative sustained industry, strategic structure and competition of enterprises, opportunities and the governmental function. This is the well-known theory, which is called 'diamond model' or 'diamond system', providing systemic analytical shape for industrial competition research.Despite the majority of experts in mathematical, governmental and industrial fields of the world have agreed on this 'diamond' theory, however, it is not a quite perfect and accurate law after all. It still has some shortages. Firstly, it overemphasizes the function of the commercial environment of a country for producing industrial competition while the internal factor or industry is not dominant. Secondly, it neglects the decisive function of technical innovation, which can not be put in an outstanding position. Obviously, this phenomenon is inconsistent with the reality and regulation of development and competition of modern industry for knowledge economy nowadays. Thirdly, it emphasizes the function of 'domestic demand conditions' unilaterally, but underestimate the important effect of the international demand conditions. The lastly, In the Porter's diamond model, the government is just a affiliated factor, which is affirmed not to interfere in industrial development. Obviously, compared to some developing countries and regions, this theory is more proper for some developed countries, whose market economic system and market competitive main body are comparatively mature. So, this theory cannot be convinced by all fields in the world.Since 'diamond' theoretic industry still has many shortages, methods referred in this article indicate that normative analysis and practical analysis must be combined as well as the combination of qualitative analysis and quantitative analysis, which is basedon theories of comparative advantage, competitive advantage, international competition and modern competition. The article also indicates that the decisive factor of industrial competition has been systematically analyzed, combining with the strategic study on Chinese fact, which is on the basis of some reasonable components of 'diamond' theory.This dissertation indicates the decisive factors of industrial competition root in three sections, including basic factor, core factor and environmental factor. Basic factor is the fundamental element which influence the industrial competition, mainly including infrastructure, capital, labor force and natural resources etc. The core factor takes the key effect on the industrial competition, mainly including technical innovation, the quality of the enterprise and market structure etc. The environmental factor comes from exterior, which takes essential effect on form and promotion of industrial competition, mainly including the system arrangement and function of the government etc.So, the competitive ability of industry must be contributed to the combination of those three sections above.However, there are too much details for those three factors, which lead to a negative situation that those three factors cannot frequently play a vital role in the industrial competitive determination. Therefore, we can only choose the dominant part from them. The study shows tha...