Author(s)

Yunqi Cheng

Corresponding Author

Yunqi Cheng

ABSTRACT

Based on the theory of enterprise organization, transaction cost, product differentiation and entry barriers, this paper shows that different enterprises often have different characters, then leading to comparative analysis of the two industries of high and low technology manufacturing. High-tech manufacturing products have long production cycles, high product value, slow response to order changes and difficult to adjust, resulting in high transaction costs, high barriers to entry, and large product differentiation, while low-tech manufacturing is on the contrary. Then select the enterprises in these two industries, YUTO Technology and JANUS Intelligence, to analyse the case study and conclude that these two companies can also reflect the contrast between the two industries. In this regard, it is suggested that high-tech manufacturing can adopt vertical integration measures to reduce transaction costs and order risks to some extent, and for these enterprises in China, the government should also take certain measures to support their development.

KEYWORDS

Transaction Cost; Entry Barrier; Technology Manufacturing Enterprise; Comparative Analysis; Case Study