The drawbacks of the production side enterprise
(2) the cost advantage - behind success of fatigue .
The processing of export-oriented enterprises successful development of key lies in its significant cost advantage. In forming cost advantage factors, comparative advantage of Chinese labor force prices are the main factors. But with the development of industry of domestic export-oriented enterprises, processing the cost advantage is under some opposite factors offset:
First, the labor price advantage for a specific business is not sustainable, with China's economic development, the labor price comparative advantage affirmation increasingly weakened. Now, because of rising labor costs, many enterprises has been plagued by a decline in margins,
Second, since originates from the labor price cost advantages, is China's processing export-oriented enterprise relative to other countries similar production enterprise advantages, rather than a specific enterprises of China's unique advantages, so, in domestic rivals, within the scope of this holistic advantage does not constitute a concrete enterprise competitive advantage.
Now, with industry competition intensifies, specific development of enterprise begins to be lack of unique competitive advantage restriction. Obviously, to specific companies, must by other ways to form distinctive, difficult to imitate the competitive advantage. Will cost is concerned, through efficient production organization ability, logistics system improve ability and technology innovation ability, obtain the cost advantage can continue supporting the development of the enterprise.
Processing of export-oriented enterprises long-term dependence on the labor price advantage, do not attach importance to this kind of ability the raise, therefore, to this kind of processing of export-oriented enterprises it brings the elements of a successful, but also in turn to become the enterprise for the further development of the hidden trouble.
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