Qinhuangdao Fengyuan Wheels Limited Development Strategy

Qinhuangdao FengYuan wheel hub Ltd. Corporation is a manufacturer of auto parts. After years of development, the corporation is transforming gradually from a small private plant with focus on raw material processing into a limited company with its own brand and activities of R&D, production and sales. At the new stage of development, it is critical to craft and implement the corporation's strategy, which determines the prospect and success of the organization. Based on the concept and basic theories of strategic management, this thesis explores preliminarily into strategies for enterprises' management and development after analyzing factors of internal and external environment.Firstly, the thesis gives an analysis of the exterior environment of the corporation from aspects of politics, law, economy and society. Adopting PEST method, it analyzes factors of macro-environment which the auto industry will have to adapt to. With the theory of five force model, the thesis discusses the competition in wheel hub industry, and brings us to the conclusion that the wheel hub industry is less attractive, only achieving an economy of scale, reducing the costs, applying diversification, enhancing innovation, can a hub producer survive in the competition. Next the thesis analyses FengYuan's internal environment in detail by means of 'resources management and capacity' method.On the basis of summarizing the company's external opportunities and threats in addition to internal strengths and weakness, this thesis uses SWOT method to put forward a strategy for business development, that is, expanding further, strengthening the advantages of products and technologies in the down-stream market, enhancing marketing, improving the relationships with government, finding more opportunities for financing. At last, the practical measures were proposed.The thesis is expected to offer some help to FengYuan in its strategic planning and implementation and provide valuable experience for Chinese auto parts manufacturers.