Application And Method Of Accounting For Competitors

　 In the famous competitive advantage, Michael Porter pointed out that the intensity of competition among the existing competitors is one of the important forces that affect the profitability of the industry. It is usually determined by the following factors: industrial growth, fixed costs, cyclical overproduction, product differentiation, trademark specificity, switching costs, concentration and balance, complexity of information, diversity of competitors, company risks and exit barriers, etc.. (MichaelPorter) The more intense the industry competition is, the more influence the competitor will have on the enterprise. The more the enterprise should pay attention to the analysis of its competitors. Because the decisive factor of an enterprise's success in competition is the competitive advantage -- the market value and the value added to the final product and market relative to the competitors, the main purpose of the competitor analysis is to identify the opportunities and threats that exist outside the company through comparison, and to identify the advantages and disadvantages according to their own resources, so as to maximize and improve the "value chain" of the enterprise, and maintain relative competitive advantage, especially the relative cost advantage. The main methods to obtain information about competitors' cost, resources and cost structure are:

1. Disassembly analysis (Tear-downAnalysis)

Disassembly analysis, also known as reverse design (reverseengineering), is a way to identify competitors' products in order to identify the possibility of improving their products. In the process of disassembly, the relevant technical experts are invited to decompose the competitors' products into parts, so as to specify the function and design of the products, and infer the production process of the products. The key point of disassembly analysis is benchmarking, and a comparative analysis is made between its own experimental product design plan and the presumed competitor product design plan. To sum up, the analysis of disassembly is essentially an organic combination of decomposition and integration. Based on the analysis of product performance, cost and production process by reverse splitting, on the basis of this, we integrate the whole plan in a timely way, and make use of the comparison method to make the enterprise clear its own product's shortcomings and advantages, and avoid weaknesses in the product design, so as to reduce the manufacturing cost and get the relative cost advantage in the competition.

2, value chain analysis (valuechainanalysis)

The concept of value chain was first put forward in 1985. enterprise All in Design All activities can be represented by a value chain in the process of producing, selling, sending and assisting the production of their products. Competitors' accounting is to use the value chain analysis of competitors to provide a reference frame for the enterprises to redesign the value chain, and strive to further optimize the value chain, that is, eliminate all "non value added operations", and at the same time, increase the operational efficiency of the "value added operation" as much as possible, reduce the occupation and consumption of resources, thereby reducing costs and gaining competitive advantage.

When using cost chain tools to estimate competitors' cost information,

First of all, we should identify and describe the value chain of competitors and determine the composition of value chain activities.

Secondly, determine the cost distribution of competitors in various value activities, and the proportion and growth trend of total cost.

Then it identifies the main components of costs and those that occupy a smaller proportion and grow faster, which may eventually change the cost structure. value Activities;

Finally, by comparing the value chain between the enterprise and its competitors, we can dig out the information, opportunities and methods that can reduce the cost of value activities.

The value chain tool can be used to understand the cost situation of competitors from two aspects of macro and micro. However, because the current information system is not based on operation basis, it lacks of direct information sources in practice, and data collection is more difficult. Enterprises can outline the contours of competitors' value chain by means of various information collection channels mentioned above and with appropriate estimation and judgement.