The Research Of Competitive Strategy Of HW Security Technology Co.,Ltd

This thesis is concerned about HW Safety Technology Co., Ltd.(hereunderbriefed as "HW") and the automatic fire alarm (hereunder briefed as "AFA") industrywhich it lies in. HW’s turnover on AFA products in2010was￥1.132billion, and theNOPAT was￥0.322billion. The applications of its products are widespread in suchfields as residential quarters, commercial buildings, communal facilities, factoryworkshops, etc. Now it has an overwhelming superiority in civil market, and its brandis the leading brand in AFA field.This thesis will apply Michael Porter’s competitive strategy theory. We willanalyze the competitive landscape of AFA industry, compare the business model withits main competitors, analyze its competitive advantage and disadvantage, and weshall also explore how HW should build and develope its core competence, maintainits competitive edge and market position.And we shall see that it competitive advantages lie in that it has the most perfectand sound distribution channel, the most complete service system, the most powerfulsales team, the stablest products, and the most well-known and esteemed brand. Andon aspects of pertinence of sales policy, flexibility of price and form of payment,market development in some specific market, and the internal administration, it hascertain disadvantages.And we shall see that HW should set its mid-term strategy as follows: Go on tofocus on solutions for electric fire, set its core business on AFA products, and makegaseous fire suppression and other relative products to be supplements, try to makeHW to be an overall supplier for fire control solutions before the end of2012.For this object, HW to take the products, technology and service differentiationstrategy based, supplemented by products related diversification strategy. developethe market which it is in competitive disadvantage, develope new products which is fitfor market demand, develope high-end market, while maintaining its present marketshare and keeping its market position, and enlarge its market share in the end.Secondly, it should also form alliances with complementary manufacturers. Thirdly, itshould build a marketing assistance system in the company to supply efficientsupporting services. Fourthly, it should go on to reinforce the brand building.On application of above mentioned measures, we could look forward to thefulfillment of the goal for HW to become an overall supplier for fire control solutionsbefore the end of2012.