Study On Competitive Strategy Of Parlex Corporation

With the increasing trend of economic globalization, China has become the focus of many international companies due to the cost advantage of its manufacturing. Lots of small and medium size oversea companies start to move their manufacturing center to China to face the severe market competition, and Parlex Corporation is one of those companies.In the early 1990s, Flexible Circuit Board was still in the growth stage and Parlex as the industry leader had a very rapid growth during this period. But attracted by the huge market size and good profit margin, more and more companies entered into this market. They made great investment to build or expand their production line and the industry quickly came to a maturity stage. By the end of the 20th century, most of the companies in the industry can only earn a survival margin.The thesis starts the research with the above background and the whole article consists five chapters.Chapter One: Give an outline description of the company history, product offering and the current organization chart. And then bring out the difficulties and challenge of the company, which is Parlex can not balance the short term profitability goal and long term business development goal.Chapter Two: The Five Forces analysis (Rivalry, Buyer Power, Supplier Power, Entrants and Substitutes) Chapter Three: SWOT analysis. List all the factors of SWOT and then work out the strategic chart through the SWOT quantitative analysis.Chapter Four: Use SWOT analysis to work out all the available strategies and then analyze the feasibility of each strategy. Finally choose the most suitable strategy for Parlex Corporation: Cost leadership strategy for company wide and differentiation strategy in some areas.Chapter Five: Do the cost analysis first and then discuss the implementation of the company's competitive strategy and finally discuss the risk of the strategy and how to avoid the risk.As a technology leader with many years'experience, Parlex must face the challenge and work out a proper competitive strategy to satisfy the company's short and long term goals, especially to balance the goals of revenue and profitability to keep a healthy development in the competition environment.