How does an enterprise change from cost leadership to technology leadership?

Applicable conditions and organizational requirements of cost leadership strategy

(1) The price competition among existing competitive enterprises is very fierce;

(2) The products in the industry where the enterprise is located are basically standardized or homogenized;

(3) There are few ways to realize product differentiation;

(4) Most customers use products in the same way;

(5) The switching cost of consumers is very low;

(6) Consumers have great bargaining power.

Enterprises to implement the cost leadership strategy, in addition to the above external conditions, enterprises themselves must also have the following skills and resources:

(1) continuous capital investment and access to funds;

(2) production and processing skills;

(3) serious labor inspection;

(4) designing products that are easy to manufacture;

(5) Low cost distribution system.