Based on the resource and competence view,an evaluating index system is constructed and the ways and initiatives are proposed according to the status quo of mechanical and electrical enterprises in Zhangzhou region.

This paper analyzes the status quo of mid-small mechanic and electric enterprises and its cost problem, service problem and quality problem in market competition, then brings forth the imitation innovation countermeasure and market innovation countermeasure of mid-small mechanic and electric enterprises.

Paper is a part of the project of the office of science and technology of jilin province, which name is "Quantitative analysis and countermeasures researching of independent intellectual property for typical mechanical and electrical enterprises in jilin province".

This thesis introduces the concept of cost by analyzing the present situation and problems of cost management of electric machine producing enterprises in China, the cost classifications and compositions, and makes a case study of Electric Machine Factory A from three aspects: analysis of cost completion, analysis of technological economy, and analysis of cost interest.