The Research On Producer Service And Competitive Advantage Of Manufacturing Industry

Producer service is the fastest-growing industry in tertiary industry, there is a close relationship between producer service and manufacturing industries. Producer service has been a great role in promoting competitiveness of manufacturing industries. China's manufacturing industry is weak and has been in a low position in the global value chain. Therefore, in order to establish competitive advantage of the manufacturing industry we should make great effort to develop producer service. This paper discusses the content and category of producer service in our country. According to Michael Porter's theory of competitive advantages, from the perspectives of cost, differentiation and technical to discuss the effect of producer service on the competitive advantage of manufacturing industries. Input-output tables is used to address that producer services is an important component in the manufacturing value chain, to show that producer service has been an important foothold of the competitive strategy of manufacturing enterprise. Then this paper does an empirical research in order to indicate that the development of producer services can enhance the efficiency of the manufacturing sector. At last, it makes some policy recommendations on how to develop producer service.