The Research On Competition Strategy In3M China Automotive Division

With the rapid development of automotive industry recent years in China, vehicle’s output and sale amount, each more than18000000sets, set a new record and overtake US as the world’s largest vehicle consumer in the end of2010. In the next years, Chinese government will accelerate the construction of urbanization, the demand for vehicles will continuously increase in domestic market. Seeing that opportunity all Chinese OEMs start to boost investment plan and expand production capacity so on the supply may overtake demand in the future. In the meantime, due to the shortage of core technologies the competition among Chinese OEM will be more and more intense and all OEMs will definitely pay more attention to the production cost and selling price. Automotive part enterprises is an very important component of Auto industry. In the future, raw material price, labor wage and cost control in OEMs, is the big challenge for Auto part manufacture. In current situation, how to make the right decision of competitive strategy for part enterprise is the key for part manufacture to win the competition and keep continuously successful in the market.This paper aims at the competition strategy research for3M Auto division during a certain period(2010-2015). At first, the article review the history of development strategy theory and draw a conclusion of the classic strategic theory and previous research result. Base on the strategic management theory and research method, the author, utilizing PEST and Porter Five Force methods, analysis the macro environment and industrial environment and identifies the opportunity and threat3M company is facing. By study on value chain and core competence of3M company, clarify advantage and disadvantage in the development of company. Base on the external and internal environment analysis, by using the SWOT matrix method, the author give match study on company strategy, the author select growth strategy as the overall strategy of the company and select cost advanced strategy as its competition strategy.In order to make sure the strategic plan go on smoothly, the author elaborate the key ingredient to success and specific measure. Predict all kinds of barrier which will happen in the future and provide ensures implementation such as human source, fund, organization structure, enterprise culture and performance evaluation.