The Impact Of Cost Leadership On Core Competitiveness Under The Perspective Of Enterprise Life Cycle

Favorable external conditions for the survival and development of enterprises just have limited role. Companies need to find their own core competitiveness, and constantly improve their overall quality. In the process of growing, The decay of businesses life and the decline of the core competitiveness of enterprises are inevitable, and if companies ignore this danger signal, then there may be in danger of being eliminated. Of course, if we can take the right competitive strategy to guide, it will make the whole system will always maintain the vitality of enterprises, to constantly update its internal competition between enterprises in. But also faced with changes in the business environment at different stages of the life cycle, business risk, cash flow situation was different. So for a cost leadership strategy to take business enterprises, at different stages of development life cycle, should be based on different economic environment in which companies take different focus of cost leadership strategy to cope with fluctuations in the competitiveness of enterprises generated.Firstly by analyzing the theory of the cost leadership strategy, the enterprise’s core competitiveness, and the enterprise life cycle, we use the 2006-2013 listed companies as samples to study the influence of the cost leadership strategy’s impact on the core competitiveness of business under the interaction influence of the life cycle in qualitative and quantitative ways. By taking a comprehensive analysis, the sample observations are divided into different stages of the business life cycle, while taking factor analysis will have to fit the internal consistency of indicators to measure the degree of corporate cost leadership, and finally through the establishment of the panel random effects model Regression analysis of efficiency, innovation and value chain in three dimensions, the article concludes. The empirical results show that:In the interaction of corporate life cycle, the implementation of cost leadership strategy can effectively promote the upgrading of core competitiveness of enterprises, but to enhance the life-cycle stages in which the degree of business and cost leadership strategy adopted by enterprises focus of differ. Overall, efficiency and innovation has always been the focus of business development process, and companies should be concerned about the efficiency motivation and innovation motivation to implement cost leadership strategy which can quickly create a competitive advantage for enterprises, but the VLeader cost leadership strategy has a sunk huge cost, and most of our companies do not have the ability to optimize the value chain, and therefore it is not recommended.