| Cabling products are mainly used to connect PC, computer network facilities and shared equipment. Besides its close relationship with network facilities, China cabling industry has grown up as an independent market with its unique history and characteristics.As the second American cabling products manufacturer coming to China market in 1990's just later than Lucent( which had separated its cabling industry to AT&T and then to AVAYA), since at that time there were no foreign and domestic competitors , AMP made great success and developed its business very fast. At the time AMP and Lucent occupied the majority of China market in which Lucent focused on project market putting emphasis in winning intellectual building cabling projects and AMP specialized in establishing its distribution channels and developing its agent team to get the distribution market. Both of them succeeded in China market and built up their brand image. By 2000 AMP's cabling sales had kept annual growing over 20%. However since 2001 its growing speed sharply slowed down and in 2002 even the sales dropped in contrast with that of 2001. At the beginning of the thesis I introduce AMP company background, cabling industry knowledge, AMP cabling industry developing history in China and the overview of China cabling market. Then by the means of theories and knowledge I acquired in UIBE, I got following conclusions after having analyzed the cabling industry developing tendency, environmental factors, economics situation, market trend, industry characteristics, AMP internal managerial architecture and competitors: Cabling product is in mature period in China market and the demand is huge. The cabling market is a typical oligopoly market mainly shared by several foreign manufacturers. Because of its lagging price reaction, AMP' gradually lost its customers and its market share was dropping . Cabling industry is a "Star" among AMP's all business units. As more and more foreign cabling manufacturers rush into China, many domestic manufacturers had grown up and seized quite market share which made AMP's business going down. China cabling market has separated into project market and distribution market while the project market had become the major part of the cabling market. As a distribution-based company, AMP replied on the distribution market too much instead of realizing the market changes and reacting. In the project market development, AMP was unwilling to invest enough in market promotion AMP's cabling products were difficult to be accepted by agents and end users. AMP's full-developed distribution market made its products price very clear. Since AMP did not perfectly managed its market price structure, many agents lost their enthusiasm in promote AMP products in project market. As its distribution market had been impacted, AMP did not adjust its channel management and agent encouraging policies to better adapt new situation. Besides, internal encouraging policy was not effective. After being acquired by Tyco International, many uncontrolled factors restrained the flexibility and further developing capability of AMP cabling industry. At last part of the thesis I list some solutions and suggestions. |
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