Strategy AK Battery Company

The thesis thinks that, the study subject, AK Battery Company should choose professional development strategy of total cost leadership in existing corporate internal and external environment and formulate function strategy and strategy implementation plan around this strategy.AK Battery Company, founded in2000, is a wholly-owned subsidiary of Baotou-Steel Rare Earth High-Tech Co.Ltd. The company’s production equipment level and process technology level have had certain competition ability compared with its peers at home and abroad. On the other hand, the development process of AK Battery Company is very complicated due to some special historical reasons. In the10years, the company experienced a series of changes in6years’construction、twice project production line transformation、product transformation、stock rights change and merge of company.Besides, such complicated developing process has caused many problems within the company and formed harmful effects for the development.The thesis generalizes the opportunities and challenges of industry development through studying the current situations and development trends of new energy cars and MH-Ni High-Power battery industry both at home and abroad, and puts forward the professional development strategy design that AK Battery Company should choose through studying AK Battery Company’s development process and characteristics, summarizing its own development advantages and disadvantages and having strategy construction for enterprise. The thesis combines the real situation of enterprise to have a contrastive analysis of differentiation strategy and total cost leading strategy and puts forward the design that AK Battery Company should choose total cost leading competitive strategy. Besides, The thesis obtains four kinds of strategy selection plans when the enterprise deals with environment opportunity and threat through SWOT analysis on AK Battery Company, which is based on total cost leading professional development strategy, and on this basis, designs function-level strategy for the company.In the enterprise’s specific strategic measures, firstly, the thesis puts forward strengthening enterprise cohesion, stimulating the employees’ enthusiasm and motivation for work and improving organization’s efficiency and innovation ability through reconstructing the enterprise’s culture to form the enterprise’s core competition and sustainable development ability. Secondly, the thesis puts forward promoting and improving the enterprise’s core competition continuously through establishing a sound performance valuation and incentive system.Finally, it puts forward realizing the reasonable allocation of resource and cost and forming the basis of implementing enterprise’s strategy through organization structure adjustments.The thesis thinks that AK Battery Company can obtain core competition of enterprises and form total cost leadership’s competitive advantage through measures like rational allocation of resources and costs, the construction of cooperate culture, establishment of system and mechanism, etc. And it is truly feasible that enterprise can realize strategic goals at last.