The Competitive Strategy Choice Of S Company

When human society enters the21st century, people’ demand is continuallyincreasing on the speed and quality of the data communication. Fiber-opticalcommunications industry arises accordingly, which has been developing as quickly asthe speed of light since the birth of the date. Fiber-optical communications products,especially fiber-optical transceivers, require high quality. Technology is complex.Production volume is small. New products need a long development cycle. Capitalinvestment in the industry is huge. Fiber-optical communications companies need tohave a higher innovation capacity, rapid market response, and strong quality controlcapabilities for the long-term viability and development. At present fiber opticalcommunication industry is in a period of rapid development. Now fiber opticalcommunication industry is transferring from complete competitive market to monopolycompetitive market. The competition is extremely fierce. So, the research for Scompany’s competitive strategy allows of no delay. Even though S company is anAmerican company, but the main production and R&D centers locate in China. Thus,the article analyze, select and implement S company’s competitive strategy based onChina’s perspective and subjects of competition.The article firstly introduces competition strategic foundation of knowledge, andthen by means of the five forces model and EFE matrix strategic analysis tools toanalyze the external environment of S company. S company is confrontingopportunities of the growing size of the Chinese economy, most governments aroundthe world greatly develop broadband network,3G network is driving demand for fiberoptical communication," the light enters and the copper draws back " trend stimulatesfiber optical communications market demand. But there are also potential threats,including escalating trade protectionism in developed countries, fiber optical productsprofit margins are compressed, RMB exchange rate rises, Since the global financialcrisis in2008, world economic recovery has been very slow. And also, we haveanalyzed the strengths and gaps between S company and the main market competitors.Subsequently, according to S company’s main products, the value chain, the core competitiveness, the article analyzes the internal conditions of S company using IEFmatrix. S company has excellent marketing ability, a good relationship with customers,powerful technical development capabilities, a number of fiber optical industry patents,many outstanding technical talents from different countries, good product quality. Butalso there are weakness at aspects of poor procurement capacity, high managementcosts and conversion costs, overall quality of the company’s human resources are notbalanced, lack of production capacity of the new products, lack of follow-up technicalinnovation capability. After this section, we use the SWOT matrix and QSPM matrixstrategic analysis methods to choose total cost lead ship strategy for S company.Finally, we come up with methods and steps to ensure implementation of thestrategy from the aspects of production organizational structure, management andoperation, technology innovation and personnel training, the domestic and internationalmarket development, control of the supply-side market, cost control. The competitivestrategy this article presents hopes to further enhance sustainable competitiveness for Scompany in the market, seeks S company continues development, beats the competitors,and meet the requirements of the globalized competitive market.