A comparative analysis of strategy determinants in manufacturing: Some findings in Shanghai and Hong Kong

Competition in industry has become more difficult with a greater number of buyers and sellers, increased product differentiation, entry barriers, vertical integration, diversification and cost structures. Many research works have been published, emphasising the importance of strategy formulation and strategic management of manufacturing function to gain competitive advantage. This paper investigates firstly the common success factors, problem areas and strategy choices; and secondly, examines the relative importance amongst corporate, marketing, technology and operational strengths of manufacturing firms, drawing upon empirical findings of a comparison study in Shanghai and Hong Kong. Although these two cities operate on very different social systems, manufacturing has been a major contributor and a stabilising force of their economy. The paper concludes by identifying the key strategy determinants (success factors, problems and choices) that could facilitate manufacturers to improve strategy formulation practices and business performance.