Research On Competitive Strategy Of CAP

As an electronic learning products manufacturer, how to determine where Cap Advance Co., Ltd.(CAP) will position itself in the market and its own strengths and weaknesses, and then develop effective competitive strategy to survive and develop in the fierce market competition, calls for urgent resolutions.In this paper, based on competitive strategy management theories and methods, combined with CAP company’s specific circumstances, the author would choose which competitive strategies is a suitable choice for CAP. Firstly, the external environment of CAP, including the macroscopic environment and industry environment has been analyzed, and the EFE matrix was employed to assess it. The evaluation results demonstrated many opportunities, such as a brilliant future in this industrial market in Thailand, low-cost, imperfect competition and so on, and some threats, such as competitiveness of substitute products and macroeconomic highly affected by natural disasters, etc. Then, the article briefly introduced company profile, and analyzed its resource conditions and capacity situation, then evaluated it with IFE matrix. Its strengths appeared as high performance of technology, cost advantages and high quality product, while its weaknesses manifested in the lack of management talent, low market share and little-known brand. Secondly, the paper carried on the SWOT analysis of CAP, which extensively reviewed its strengths, weaknesses, external opportunities and threats. After comparing three competitive strategies, the article concluded that low-cost competitive strategy was much suitable for the growth of the company, which meant CAP should put many efforts into reducing costs of raw-material, logistics merchandise sold, administration, after-sales maintenance and human resource. In order to ensure the implementation of low-cost competitive strategy, this paper pointed out that CAP should implement the strategy by fostering low-cost culture, bringing up the new concept of cost effectiveness, improving research ability, ensuring high product quality, enhancing human resources quality, strengthening brand building, improving the quality of after-sale service and other safeguard measures.The corporate strategy ensured the CAP to adapt to external circumstances, develop the market and improve its core competitiveness. This research on CAP competitive strategy is of great helpful for further development and can surely give references to other small and medium-sized electronic learning products manufacturers.