Research Of The Competitive Advantage For The Capital Of A Corporation’s Technology

With the progress of science and technology，new production factors such astechnology and knowledge have gradually become the main factors of value growingof enterprises. Various element capital has built its competitive advantage focus on thetechnology capital, technical element itself also becomes the most important drivingforce for the corporation development, creating more wealth for shareholders andstaffs. This paper aims to explore the source、performance and influencing factors oftechnology capital and analyse effective configuration between technology and theother capital through combining element and strategic management theory by puttingtheory into practice.The article will adopt the method of case study, combining qualitative analysisand quantitative analysis, exploring the source、performance of technology capital,calculating its proportion in total assets、evaluating capital structure meanwhile andalso discovering problems according to technology capital input-output status quo ofHisense. At last, the article will put forward correction measure.The thesis is composed of six sections which begins with stating the background,problems, significance, method and aim of it. Chapter2is literature comment, aretrospect on both element capital and competitive advantage theory, distilling thetheoretical basis of competitive advantage of technology capital. Chapter3willintroduce the case from the view of finance and give basic views as follows:competitive advantage of technology capital is the centre of other competitiveadvantages of Hisense Group, in comparison with the other element capital,technology capital has been superior to the core competitiveness and created thesustainable competitive advantage when it acted on Hisense corporation. Chapter4isthe centre of this article by analyzing the competitive advantage of technology capitalof Hisense Group. The main content includes several aspects as below: accumulativecharacter of technology capital in different period and status quo of high and newtechnology in Hisense Group; To exploit the root-cause of competitive advantage oftechnology capital, it is essential for the author to calculate numerical value of eachcapital and also the proportion of technology capital, meanwhile, several interrelated quantitative data will be put forward to further back up the argument; Throughdiscussing the pattern of value creation, the thesis will sum up the character ofcompetitive advantage of technology capital. Influencing factors will be put forwardat the end of this section. According to the conclusion in the chapter4, chapter5willput forward countermeasure of maintaining the competitive advantage of Hisense:including selecting the suitable forms of raising technology capital and separateaccounts for technology capital, optimum distribution of resources center aroundtechnology capital, promotion of R&D investment and an aim of maximum ofemployee value. Chapter6is conclusion and suggestion of this article, this sectionsums up the results as follows: product differentiating, decreasing rate of product cost,economy of scale, economy of scope, economy of velocity and enlarging corporationscale by technology capital operation, the advantages are affected by technologystratagem, dimension of R&D investment, institutional environment, demand andsupply and the other element capital. Shortcomings in this paper are that theevaluation of technology capital can not be as accurate as possible, the referencestandards of capital configuration which focuses on the centre of technology capital isstill needed to be further get into.