The Financial Leasing Application in Equipment Manufacturing Industry under Cost Leadership Perspective
|Keywords||equipment manufacturing industry financial leasing cost leadership strategy|
Equipment manufacturing industry has made a great contribution to the industrializationof China since it was started in the middle of the nineteen century. Equipment manufacturingindustry is still an important part of our economy and will play a increasingly crucial rule inthe restructure of our economy and the upgrading of our industry. However, consideringglobal equipment manufacturing industry, we can see that equipment manufacturing industryin China is lagging far behind our competitors. In order to promote the development ofequipment manufacturing industry, China should make its equipment manufacturing industrymore competitive.Under the circumstance of fierce competition in global equipment manufacturingindustry, it is necessary for equipment manufacturing industry in China to improve the itsoperating efficiency to obtain competitive advantage. In view of this, company of equipmentmanufacturing industry in China will consider cost leadership strategy to be a good selection.Further more, with the increasing interaction between finance and the real economy, it isnecessary for the company to promote the implement of cost leadership strategy with the helpof financial tools.Among all kinds of financial tools, financial leasing has the closest connection withequipment manufacturing industry. After describing the present situation of financial leasingand equipment manufacturing industry in China, this article summarizes previous studiesrelated to financial leasing or equipment manufacturing industry in China. Taking thecharacter of financial leasing in consideration, this article discusses the promoting effect offinancial leasing on the implement of cost leadership strategy in equipment manufacturingindustry in China. This effect reveals itself in three aspects: first, financial leasing promotesthe implement of cost leadership strategy by virtue of its sales promotion character; second,financial leasing promotes the implement of cost leadership strategy by its asset managingcharacter; last, financial leasing promotes the implement of cost leadership strategy by itscash managing character.