The Study Of Cost Control Based On The Product Difference

The competition is an objective result of the market economy, there is its certainty in the existence of enterprise's competition. General competitive strategy known very well by theory circle and business circles is put forward by famous strategic management expert, Michael Potter, of Harvard Business School U.S.A in 1980's, Potter think, there are 3 kinds of most general competitive strategies to win competition advantage, named cost leadership strategy , difference strategy and goal gather strategy. Enterprises have to choose one from these three kinds of strategy as its leading strategy. Carrying out the basic strategy can set up competition advantage. Low cost and difference strategy is similar to one choice that "face a difficult choice ", because the two have no inconsistencies under consideration at the same time. It is nearly destined to fail to sandwich and keep on vacillating. Modern revolution to producing industrial and development of information network technique of management mode in this information economic era make difference strategy integration with the low cost strategy become possible. As integrated strategy, to obtain competition advantage, it offers wide space to enterprise for growing up and industry to develop .This text is divided five parts to explain products difference and low cost integration of the two. Chapter one sums up document about enterprise's competitive strategy mainly, draws the basic three competitive strategies of enterprise by Potter: the products difference, low cost and goal gather strategy, and proposes dispute of "Michael Potter conflict" and domestic and international theory of circle. Realistic meaning, research approach is put forward finally. Chapter two mainly narrates the content of the products difference, products difference and the factor of the cost driven, and explains the impact of products difference on cost of the products finally. Chapter three proposes the appropriate products difference and the controlled cost. Chapter four explained necessity , possibility and character of products difference merging with the low cost, then put forward the way to realize integration and basic analyzing model. Chapter five explains the risk of the products difference merging with the leading cost strategy and way of overcoming.