Research On Competitive Strategy Of Sanlian Household Appliance

Based on related theories of competitive strategy and followed the strategy-making process, I worked out the competitive strategy of differentiation through analyzing the opportunities and threats Sanlian Household Appliance (hereinafter referred to as Sanlian) faces as well as the advantages and disadvantages of Sanlian. The methods of implementation of differentiation strategy are designed and discussed in detail. This thesis provides a scientific and rational direction for Sanlian, and also provides a certain reference for similar retailers.Firstly, external environments including macro, industrial and competitive environments are analyzed for Sanlian in this paper by means of PEST and the Five-force Model. As the analysis shows, Sanlian now has favorable macro and policy environments and a coming opportunity of industrial transformation. However, the market competition within China will become evermore fierce due to the recession in demand globally as a result of the international financial crisis.Secondly, the advantages and disadvantages of Sanlian are summarized based on the analysis for its internal resources and abilities. The brand of " Sanlian " has high prestige and reputation and it can still attract many loyal consumers. Also Sanlian have advantages in culture,M&O system,service and IT. The scale and strength of Sanlian are seriously weakened and the brand image is severely damaged, leading to bad financing environment and ability,these are the disadvantages of Sanlian.Based on the opportunities and threats Sanlian faces at present as well as the analysis for the internal resources and ability, the competitive strategy of differentiation is worked out for Sanlian under the direction of Porter competitive strategy and is described with respect of the differentiations in O&M, product&market,service, expansion mode and brand.In order to ensure the successful implementation of differentiation strategy in Sanlian, analysis and design are carried out in this paper in terms of the design of organization structure, HR management, corporate culture, establishment of Vendor-Buyer Integrative Synergic Management System, and the expansion mode of region replication.In this paper, the experiences and lessens learned from the development of Sanlian are summarized. The analysis that how Sanlian can rise again with the resources and ability previously accumulated not only makes great practical significance but also provides a certain reference for the development of other regional household appliance distribution companies.