Research On Competitive Strategy Of Company

Auto Manufacture Industry is the one of the mainstays of the economy, which is regarded as the driving power of the economic development in developed countries and developing ones around world. Accordingly, the drastic competition happens in the auto industry, especially in the components industries. We are supposed to think the approach for component suppliers to survival, develop and grow in strength without strong support from finance side and technology side as well as excellent enterprise culture and effective competition response. Traditional enterprise competitive strategy is focusing on the funds, technology, quality and innovation of one company. According to the different facts effecting in the competitive strategy in companies, Michael Porter, the founding father of competitive strategy, summarized it as strategy of Overall cost leadership, Differentiation and Focus. Due to the fact that the change of the surroundings in the auto industry and components industry is a little faster than the strategy adjustment in companies, the companies which are applying the traditional competitive strategy are not suitable the changes. With the rapid development of the China Passenger vehicle industry and the rapid change of the surroundings of the industries, some of the components suppliers find that they are not suitable it. The advantages in cost, technology as well as scale which are brought by traditional competitive facts such as funds, technology, quality and innovation are weakening. Therefore, the components suppliers which are in the auto industry should find a new competitive strategy to come into new advantage to suitable the surroundings.The company A is one of the China passenger vehicle industry and passenger vehicle gray iron cylinder casting manufacture industry, is facing the rapid change surroundings. The purpose of this paper is to apply a new competitive strategy, speed strategy on company A based on the traditional competitive strategy. Because of the similar industry surroundings of some components suppliers around world, it will bring some suggestion by studying the application of speed strategy in company A.