Research On The Evaluation Of New Venture's Competitive Advantage

The title of this paper is Research on the Evaluation of New Venture's Competitive Advantage. It mainly has a deep research on how to evaluate the intension of new venture's competitive advantage which is the basic of new venture's survive and development.Enterprise is the main impulse of social economy increasing and innovation. It is also the foundation of national economy's vigor lasting for long. And now new ventures are going to be paid more and more attention to by social and academic circles. Market economy is competitive economy. Market competition is for the fittest ones to survive. Under the more intense market environment in new century competing, new ventures are the newborn strength that has vigor, but whether it can stand firmly and develop to become the leader of market competition, key lie in whether it has competitive advantage. The enterprise possessing competitive advantage may just get higher performance and long-term development. The enterprise that lacks competitive advantage will fall into crisis, loss, and even to go bankrupt. Along with the integration of the global economic accelerating, whether new ventures in global competitive can not be defeated is also depending on the competitive advantage. Researching on new ventures'competitive advantage has important realistic meaning to our country growing up and developing. The frame of this paper's research from logic can is divided into six chapters. The main content of each chapter is as below,The first chapter is the introduction, mainly elaborating the background of this thesis, theory and practical significance, present condition and the contribution to this paper's research of domestic and international research, the innovation, content and methods of this paper's research.The second chapter is the summary of the relative theory of competitive advantages, including neo-classical economics and transaction cost theory, competitive advantage exogenous theory, competitive advantage within the hygiene theory and the theory of dynamic capabilities. Within this total, the competitive advantage within the hygiene theory is on further divided into three main schools, including enterprise growth theory, the resource-based theory and the theory of core competence. The theory knowledge of this chapter lays a solid theoretical foundation for the application and verification of the later text, and it's the basis of the research of key source of Competitive Advantage.The third chapter attempts to deeply study the intension, feature, major source of new ventures'competitive advantage, based on the basic theory of enterprise competitive advantage and through the special analysis of the feature difference between new venture and mature enterprise under case study of new ventures. The paper promotes five major factors which are suit to appraise new ventures'competitive advantage, including the entrepreneur, located environment, the heterogeneous resource and ability which new venture owns.The fourth chapter establishes the evaluation principles of new venture's competitive advantages and the evaluation indicators system, including the target layer, c layer and indicators layer, and generally introduces the principle and main steps of this paper's evaluation method– AHP.The fifth chapter applies AHP to determine the weights of each evaluation factors and indicators, has a questionnaire survey to one automotive electronic enterprise in Changchun, taken five points scaling form to evaluate each of the indicators. After data processing, this paper figures out the competitive advantages score - 3.4284, greater than the medium score - 3, proving that the enterprise has a strong competitive advantage. However, from the criteria layer's factors'weight ranking, it can be found that the enterprises may improve its resource advantages, such as attracting outstanding talents from various channels; using staff training to improve staff technical proficiency and professionalism; Updating machinery and equipment, and maintaining the advanced character and proprietary; Improving the quality of products, packaging and customer service and so on. Thereby the overall competitive advantage score can be enhanced and the enterprise can occupy a firmer competitive position in the market and gain a greater market share.The sixth chapter is the summary of this paper and the prospects for future research, such as enhancing its competitive advantage theoretical research, large samples analysis and comparison analysis, and the empirical research of the relations between competitive advantages and the success or the high performance of new ventures.From such study, the paper aims at making a reasonable thinking and judging to the station , latent ability to win the market competing , and the performance which will be got in future of new ventures through the research .Evaluation result has important guidance meaning for the establishment of the next step's strategy and goal.