Author(s)

Ruixue Xu ¹, Qiufei Wang ¹

Affiliation(s)

¹ School of Management, Shenyang Jianzhu University, Shenyang, China

Corresponding Author

Ruixue Xu

ABSTRACT

With the advancement of the deepening reform of the pharmaceutical industry, the pharmaceutical industry in our country has been developing continuously at the same time, but also faces the fierce competition. In the context of fierce market competition, the pharmaceutical industry because of the high cost, so that corporate profits are constantly compressed. In order to improve the enterprise's operating profit and competitive strength, the management begins to pay attention to the management of cost and expense. Effective cost and expense management requires the management to first understand the traditional theory of evolution and fully understand the phenomenon of cost stickiness caused by resource allocation. Therefore, this paper selects Shenzhen Xinitai Pharmaceutical, a representative enterprise in the field of cardiovascular and cerebrovascular, as the case study object, and uses Palepu strategy to identify financial system indicators and Anderson model to identify and calculate the enterprise's competitive strategy and cost stickiness, and analyzes the impact of competitive strategy on cost stickiness. Then the conclusion that differentiation strategy enhances cost stickiness is drawn, and the impact of differentiation strategy on cost stickiness is further analyzed.

KEYWORDS

cost stickiness, competitive strategy, differentiation strategy, pharmaceutical enterprise

CITE THIS PAPER

Ruixue Xu, Qiufei Wang, Study on the Influence of Competitive Strategy on Cost Stickiness: Take Shenzhen Xinlitai Pharmaceutical as an Example. Accounting and Corporate Management (2022) Vol. 4: 7-18. DOI: http://dx.doi.org/10.23977/acccm.2022.040502.

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