Company G Of The Auto Parts Industry Competition Strategy

This thesis focuses on the study of the competitive strategy of G Company, an automotive component company developing in the rapid growing China Automobile market.At the early stage of the fast developing China Auto market, G Company gained great success by adopting the right competitive strategy, and got the leading position in China automotive component industry. But with the Auto industry's rapid growing and the changes in this industry, G Company encountered some severe challenges on its internal organization structure and cost controlling, which influence the company's leading position in China Market.The Value Chain theory is used in this thesis to analyze G Company's actual competitive advantages. The conclusion is that in new situation, G Company should make its cost control ability more competitive in the industry and keep its consistent advantage in technique. So the competitive strategy should be based on the combining of the low cost and differentiation. International competition will bring challenge and opportunities to the local Chinese automotive supplier. It is very important for G Company to be involved in this competition. But G Company must be well prepared before entering the international market.This thesis consists of 5 chapters. In Chapter 1, briefly introduce the automobile industry, automotive component industry and weatherstrip industry. Chapter 2 emphases the backgrounds of G Company and its current competitive strategy, and some problems related with the company's development. Chapter 3 is the analyzing process, with the value chain method and Five-Force Model by Michael E. Porter, to find out G Company's core competence. In Chapter 4, it will be discussed that how G Company adjusts its competitive strategy. Chapters 5, briefly talk about the prospect and feasibility into international competition in this industry.