A Study On Products Adjustment And Competitive Strategies Of Tools Plant Of DFL

The essay proposes the essentiality for Tools plant of DFL to adjust its products and establish corresponding competitive strategies through analyzing the current situation. To begin the research, several competitive strategy theories are introduced. Then after the analysis of the situation and the developing of its industry, the results show that the key developing area of tools are high speed cutting technology and tools for cars machining, yet the component industry is facing more and more price reducing pressure and will be part of the global system gradually although the potentiality is very large. The essay also puts forward the strengths and weaknesses, the opportunities and threats, as well as its industrial environment and primary competitors that Tools plant of DFL should realize through analysis of Tools plant of DFL and its competitive environment. Based on this, the paper presents the scheme of products adjustment to indicate how to invest by means of Boston matrix. The products are divided into three groups which are 1. developing products ; 2. maintaining products ; 3. abandoned products. Finally, via studying on competitive strategy of Tools plant of DFL according to the theories and ways for choosing generic competitive strategies, the essay draw such conclusions as follows : 1. the competitive strategy of tools is the combination of focusing and differentiation, and the supportive strategies are R&D strategy, high quality strategy, time-based strategy, differential pricing strategy and differential service strategy; 2. the competitive strategy of components is the integrated low-cost and differentiation strategy, and its supportive strategies are high quality strategy, brand strategy, reducing cost strategy and cooperation strategy.