›› 2016, Vol. 28 ›› Issue (5): 220-231.

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Enterprise Niche Building Business Ecological Competitive Advantage: Comparison between Yutong and Baic

Huang Jiangming1, Ding Ling2, Cui Zhengyan3   

  1. 1. School of Business, Renmin University of China, Beijing 100872;
    2. School of Social Sciences, Tsinghua University, Beijing 100084;
    3. School of Economics and Management, Beihang University, Beijing 100191
  • Received:2015-12-03 Online:2016-05-28 Published:2016-06-02

Abstract:

Thispaper takes Yutong and Baic as cases to explore patterns, process models and strategies of enterprise niche separation or overlapping, and thus to reveal competitive advantage for enterprises. Yutong and Baic have accompanied China's economic reform and opening up both after growth of more than 50 years. They have each gone through four stages of development with different breadth and strategy of enterprise niche for representative data. By comparing them, the paper derives the relationship model for separation and over-lap of enterprise niche. It also deduces niche breadth strategy to build competitive advantage in the process model. This model reveals the reasons that some enterprises have low intensity of competition, while some enterprises have intense market competition with significant product homogeneity. By specific niche strategy, an enterprise separates its innovative niche through product series and reduces the degree of market competition. However, by general niche strategy, an enterprise copies the overlapping niche through product platform to enhance the product commonality and reduce the product cost. The conclusion of this research has important practical significance for guiding the transformation and upgrading of Chinese manufacturing enterprises.

Key words: enterprise niche, competitive advantage, strategic positioning