EPCOS Low Cost Strategy Realization

Electronic components in the front of electronic information industry chain and play a vital role in the development of this field, they are the basis for the development of the communications, computer networks, digital audio and video systems and end products. EPCOS Zhuhai Free Trade Zone Co., Ltd. is a foreign multinational companies and main production is electronic components. Due to increasingly fierce competition in the manufacturing of electronic components, company currently facing severe cost pressures forced the enterprises to deepen the low-coststrategy, establishing a new cost leadership competitive advantage.Based on theoretical overview point and new research as well as the China’s electronic components industry status, deeply analysis EPCOS external environment and internal resources, main product cost structure and the internal value chain, combined with the current low cost strategy for the implementation of the status quo and existing problems, to explore ways to deepen the low-cost strategy in the design, development, procurement, manufacturing, and transportation of several key link of the company and propose appropriate measures so as the basis. Meanwhile, to optimize the management of human resources, and to retain key employees; strengthen marketing channel management, and reduce the cost of sales; improve the building of enterprise culture, improve employees’ sense of ownership three enterprises to ensure the effective implementation of the low-cost strategy to improve the program. Lay the theoretical foundation for the long-term to survive competitive advantage and stable development of companies in the fierce market competition in the future.