Process innovation, cost leadership and market power analysis based on electronic information industry

Selecting the electronic information industry as the objective of empirical study, this paper disclosed developed countries, MNCs usually establish and promote their market power through cost leadership in the global price competition. The paper analyzes the mechanism of how cost leadership makes for the firm's market power forming. Then, it holds that relying on, the process innovation and effecting scale economy and speed economy is the key to achieving cost leadership. In the current situation, Chinese companies faced the problem of absence of market power in global competition seriously and they almost can not survive in the seriously price competition, the paper put forward the enlightenment to Chinese electronic information industry.