A Research On Competitive Strategy Of TKS Seal Products

With the competition in seal product industry is becoming intensive, TKS company is facing many opportunities and threats. The success of TKS essentially relies on how to establish a product competitive strategy which not only makes full use of its advantage to grasp opportunities but also overcomes its disadvantage to avoid risks. This paper intends to make a systematic analysis of TKS company on the basis of strategic management theory. It aims to offer the optimal competition strategy by adopting the methodology of macroscopic and microscopic, qualitative and quantitative analysis.First, based on the methodology of PEST, Five Competences Model, this paper analyzes and evaluates the macroscopic environment and competition status of seal products. It points out that TKS company is facing a few positive opportunities such as the favorable national policies,a growing local and oversea market of seal product. However, TKS company is still facing these threats such as intensive competition and rising price of raw materials. Second, through the survey of experts and the methodology of key success factor (KSF), it concludes the concrete KSFs of seal product, including large scale economic production, cost controlling, product development and quality management. Third, through the methodology of value chain and based on the identified KSFs, this paper analyzes and evaluates the status of internal resources and key abilities. It points out that seal product has these advantages such as product development and brand influence, and has these disadvantages such as cost controlling and quality management. Fourth, SWOT model is constructed in order to probe into the product competitive strategy of TKS company. Through qualitative analysis and quantitative strategic planning matrix (QSPM) analysis, this paper concludes that TKS company should implement product development strategy combined with management improvement. Finally, as to the implementation of strategy, it suggests that TKS company should try to build up core competences based on the KSFs, upgrade the organizational structure and culture system, and adjust the strategy with the environment changing.