CC BY
16
УДК 339.5
THEORETICAL ASPECTS OF COMPETITIVENESS ANALYSIS OF THE TRANSNATIONAL CORPORATIONS
K. Yutai
Scientific Supervisor - M. N. Chuvashova
Reshetnev Siberian State University of Science and Technology 31, Krasnoyarsky Rabochy Av., Krasnoyarsk, 660037, Russian Federation E-mail: kangkang707595115@qq.com
This paper analyzes and summarizes the existing development and changes of transnational corporation's competition strategy in five aspects: competition idea, operation strategy and investment strategy.
Keywords: multinational corporation, competitive strategy, strategic alliances.
ТЕОРЕТИЧЕСКИЕ АСПЕКТЫ АНАЛИЗА КОНКУРЕНТОСПОСОБНОСТИ ТРАНСНАЦИОНАЛЬНЫХ КОРПОРАЦИЙ
К. Юйтай
Научный руководитель - М. Н. Чувашова
Сибирский государственный университет науки и технологий имени академика М. Ф. Решетнева Российская Федерация, 660037, г. Красноярск, просп. им. газ. «Красноярский рабочий», 31
E-mail: kangkang707595115@qq.com
В статье анализируются и обобщаются существующие разработки и изменения конкурентной стратегии транснациональных корпораций в пяти аспектах: идея конкуренции, операционная стратегия и инвестиционная стратегия.
Ключевые слова: транснациональная корпорация, конкурентная стратегия, стратегические альянсы.
In recent years, in order to adapt to the new situation of market globalization, capital internationalization, and trade and investment liberalization, multinational corporations have entered a new and important period of strategic transformation.
I. Сompetition philosophy: from pure competition to cooperative competition.
Since Adam Smith, western mainstream economics and business administration have advocated "pure competition". The concept of pure competition originates from the concept of natural competition in western culture, that is, "natural selection, survival of the fittest". Since the end of the 20th century, the practices of joint venture, joint venture, franchise, strategic alliance and strategic outsourcing have been more favored by multinational companies, which reflects the new changes in the competitive concept of multinational companies. In 1992, only 20 percent of U.S. There were positive about strategic alliances, and by 1997, 60 percent were in favor of considering such expansion first. In their book "collaborative competition: strategic alliances and acquisitions in global markets", Joel bleaker and David Ernst of McKinsey, a global consultancy, argue that in global markets "the era of competition at the total expense of others is over" and that co-operation is necessary in order to compete [1]. The author also explains how to "gain an advantage through cooperation». In his book, management guru Peter Drucker also pointed out that in the global economic environment, the new model of corporate growth will be based on partnership rather than control, including outsourcing, strategic alliances and joint ventures. A new era of cooperative and competitive strategy has arrived.
II. Market strategy: establish strategic alliance.
Секция «Проблемы и перспективы международной интеграции в современном бизнесе»
Mr Drucker saw strategic alliances as the most flexible way of "creating co-ordination out of discoordination". Strategic alliance emphasizes the compatibility between partners and the common use of some resources, which is characterized by fast, flexible and economical, and is favored by multinational companies. In recent years, multinational companies have formed strategic alliances to participate in international competition [2]. Multinational companies formed a strategic alliance in a number of technology alliance, through technical cooperation with each other, to jointly develop new technology, to share new technology brings high profits, it also makes a lot of advanced technology is mastered by the multinational companies of developed countries, they are relying on technology monopoly to the development of developing countries enterprises caused great obstacles.
III. Strategic focus: shift from product production to product service.
Many multinational companies have adjusted their business strategies and shifted their strategic focus from product production in the past to various service activities such as after-sales service or technical support service. To win the market competition, it is more practical for enterprises to adopt the differentiation strategy rather than the cost reduction strategy. The differentiation strategy must start from service [3]. Transition from production to products and services of strategic adjustment is inevitable trend in the development of enterprise strategy, an enterprise shall conform to the trend, from the perspective of the service, take the difference strategy, in order to obtain better than competitors, so as to better meet the needs of the consumers, utmost ground to more consumers, in an impregnable position in the fierce competition.
IV. Business strategy: transform from "diversification" and "scale" to "core competitiveness".
Return to the centralized development strategy, withdraw from the non-core business, and concentrate all the resources of the company to develop the core business, highlight the enterprise advantages, and try to make the enterprise master the absolute initiative in the competition in a certain field. In 1990, American economists Gary Hammer and C.K. Prahalad put forward the theory of "core competitiveness" in their article "core competitiveness of enterprises" published in Harvard business review. Since then, more and more multinational companies have gradually put their core technologies, core markets, core customers and core products in the core position of enterprise management. It has become a basic feature of the adjustment of industrial structure and product structure of multinational corporations in the new century to stress the main business and the core business. According to data provided by fortune magazine, among the world's top 500 companies, 140 companies with individual product sales accounting for 95% or more of their sales volume, accounting for 28% of the total number of fortune 500 companies. The sales volume of leading products accounted for 70-95% of the total sales volume of 194 enterprises, accounting for 38.8%.The sales volume of related products accounted for 70% of the total sales volume of 146 enterprises, accounting for 29.2%.This fully shows that the business strategy of transnational corporations is changing from diversification to core competitiveness.
Enterprises in pursuit of core competitiveness pay special attention to the cultivation of technological innovation ability, which is reflected in constantly strengthening the input of research and development costs. According to relevant statistics, the world's top 500 companies invest 70% of the global research and development costs. In the United States, multinationals account for about 90 percent of the country's research and development spending. It is the monopoly advantage in technology that large multinational companies rely on to maintain strong competitiveness and obtain rich profits.
V. Investment strategy: shift from "greenfield construction" to "merger and reorganization"
Since the 1990 s, take the market as the guidance, taking high-new technology as the core, to enhance the core competitiveness as the goal, is characterized by strong enterprise joint of multinational merger and reorganization, exacerbating the resource to the concentration of advantage enterprises, multinational corporations through mergers and acquisitions to absorb the original enterprise's stock assets, realize the low cost expansion of enterprises. The merger wave started from the financial industry and telecommunications industry, and affected almost all industries such as aviation, automobile and oil. Moreover, the number of super-large mergers and acquisitions increased sharply, and the scale of transnational corporations became larger and stronger. Mergers and acquisitions activities have continued to heat up since 2006. The goals of mergers and acquisitions of multinational companies have become more pragmatic. Rational horizontal mergers and acquisitions have replaced the blind mixed mergers and acquisitions aimed at diversified operations. Merger and reorganization has not only become a
shortcut for transnational corporations to improve their core competitive advantages, but also become a major way of international direct investment. The main reasons for multinational companies' enthusiasm for cross-border mergers and acquisitions are as follows: they can quickly eat up their competitors and turn them into their own competitive forces, so that the global excess production capacity can be recom-bined.
Conclusion : In order to adapt to the new situation of market globalization, capital internationalization, trade and investment liberalization, transnational corporations have adjusted and developed their competitive strategies one after another, and there have been new developments and changes in twelve aspects, including the competitive concept, market strategy, business strategy and investment strategy.
References
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© Yutai K., 2019
