An Empirical Investigation Of The Relationship Between Different Competitive Strategy And Profitability Persistence

With the development of social economy, the change of market competition environment, enterprises pay more attention to the competitive strategy, competitive strategy, to a great extent, affects the sustainable development of the enterprise. In recent years, the hotel industry has been rapid growing and developing, and form the obvious differentiation competitive strategy mode, differentiation competitive strategy model represented by high star hotel and low cost competitive strategy model represented by economic hotel is widely used, but no scholars to research the certificate of different competitive strategy models about how to affect the revenue and cost profitability in the hotel industry.The research ideas in this paper is divided into two steps:one is to demonstrate the business with low cost and differentiation of two different mode of competitive strategy weather have the sustainability of earnings differences; The second is to analyze the causes of differences and laws of enterprises with low cost and differentiation of two different competitive strategy models about the profit sustainability.(1)to demonstrate the business with low cost and differentiation of two different mode of competitive strategy weather have the sustainability of earnings differences,the purpose is to illustrate the different competitive strategies have different effect on sustainability of earnings;(2)to analyze the causes of differences and laws of enterprises with low cost and differentiation of two different competitive strategy models about the profit sustainability.This is the key point of the article.This paper takes the hotel industry in the first quarter of 2007 to 2015 in the third quarter of the quarterly and annual data from 2007 to 2014 as samples to prove the relationship between the operating profit margin (PM) and asset turnover (ATO) sustainability issues as well as the relationship between them and business model, in further studies, discusses the PM and ATO each component in two modes will have what kind of differences. This paper draws the following conclusions:First, compared to the company of the differentiation competitive strategy and low-cost type hotel, the future of the differentiation PM (ATO) has stronger affinity with the current PM (ATO) stronger. Second, the future PM (ATO) of differential competitive strategy correlated stronger with the current income composition than low cost type company. Finally, the future PM, took the differentiation competitive strategy, has stronger relevance with the current cost component than the low-cost type hotel.The research conclusion of this article think that the hotel industry enterprises to adopt different competitive strategy mode that affects earnings persistence, and enterprise need to choose its competitive strategy according to its own advantages and characteristics; In this paper, the characteristics of PM and ATO and behind the price, cost, sales and different rules of profit effectively reveals the reasons and rules of the enterprise adopt different competitive strategy model for the sustainability of earnings. And improving enterprise sustainable profit growth ability is the basic measures to improve the quality of enterprises and vitality.