Research On SD Group 's Competitive Strategy

The importance of electronic insulation material die-cutting industry lies within efficient service it provides to optoelectronic and electronic manufacturers. Such service is considered to be of high professional technology that requires very thorough segmentation of expertise to fulfill client’s demands where fast and real-time high quality electronic insulation materials are to be provided according to the specs. China is now the world’s biggest manufacturing base for consumer electronic products, attracting electronic insulation material die-cutting manufacturers of scale to strategically set up the factory close by their clients around places in China.With over10years of history in the electronic insulation material die-cutting industry, SD Group and its excellence in die-cutting technology have gained reputation and developed its scale in this field. However, it faces challenges of rapid changes in the electronic industry, shrinking profit margins and the expansion of intermediate electronic insulation material die-cutting competitors. Under such circumstances, SD Group needs a prudential plan to maximize the raised funds after being listed in early2013where its10years of rich advanced-precision die-cutting manufacturing experience can be ameliorated to scientific management and efficient model by strengthening the Group’s core competitiveness to increase the overall profit. A sustainable competitive strategy for the Group also has to be concluded.This research consists of seven chapters. The first chapter introduces the current status and trend of the electronic insulation material die-cutting industry, as well as the purpose and framework of this study. The second chapter, after which the industry has been defined, moves on to explain the life cycle of the electronic insulation material die-cutting industry, followed by analysis of its characteristics and trend. The third chapter, after introducing the background of the Group, analyses the macro environment and Five-Forces Model of SD Group according to its external strategic environment. The fourth chapter presents a SWOT analysis to summarize its strengths and weaknesses, opportunities and threats by which the current value chain is also being analyzed. With the above-mentioned analysis, the fifth chapter moves on to define the strategic positioning of SD Group in order to come up with a most appropriate strategy for its development followed by the method of implementation. The sixth chapter points out four action plans of SD Group competitive strategy, where how to implement relevant measures and integrate competitive goals are explained. Finally, the last chapter concludes the strategic planning and its content, as well as the prospects for future research.This research has adopted various strategy analysis tools such as PEST, Porter’s Five Forces Model, SWOT, value chain analysis, etc. to conclude that the differentiation strategy is the best strategy for SD Group. With adopting automatic facilities, building ERP management system, and developing unified purchase platform, efficiency competence will be built. Furthermore, with supply chain integration and value chain enhancement, innovation competence will be built. The integration of efficiency and innovation competence measurements will lead SD Group to achieve its competitive strategy goal.