The Research Of Competition Strategy On SDGB Electrical Co.Ltd.

SDGB Electrical Co., Ltd.(hereinafter referred to as "SDGB Company") is a smallprivate-owned company, which was established in January2006,is committed to theR&D and production of high voltage electrical energy measurement devices and relatedproducts. Now it is a modern high-voltage electrical equipment manufacturing companyintegrating research, production, sales. With continuous innovation and development,there is a rapid and effective value accumulation of technical, manpower, financial andmaterial resources. Firm size has far exceeded the original size. At the same time therapid development, SDGB Company are facing some bottlenecks that impede the furtherdevelopment. Be in fierce competition complex and volatile market environment, SDGBcompany should keep eyes on long-term development, not just immediate needs, whichmade higher requirements to corporate strategic decisions. SDGB Company mustdevelop competitive strategy and practical implementation measures in accordance withthe concrete condition, in order to promote progress and development in the fiercemarket competition.In this paper, based on competitive strategy management theories and methods,combined with SDGB Company’s specific circumstance, the author would choose whichcompetitive strategies is a suitable choice for SDGB Company. Firstly, this paper carriedon the PEST analysis model to analysis the macroscopic environment, using the fiveforces analysis model analysis the industry environment， and the EFE matrix wasemployed to assess the external environment of SDGB company. The evaluation resultsdemonstrated many opportunities, such as the policy support, good market prospect,continued growth in market demand, imperfect competition market, High barriers toentry and so on, and some threats, such as competitiveness of potential entrants andsubstitutes, superior Bargaining Power of buyers, the high cost of labor, etc. Then, thearticle introduced internal factors by value chain analysis model, and using IFE matrix toevaluate it. Its strengths appeared as a good reputation and a very extensive influence,high performance of technology, strong technical support, good financial conditions,strong investment and financing capabilities, quality assurance, product sales growth yearafter year, while its weaknesses manifested in the small scale of enterprise, the lack ofmanagement and operational talent, the lack of high-quality management personnelreserve, weak capability of innovation. Secondly, the paper carried on the SWOTanalysis of SDGB company, which extensively reviewed its strengths, weaknesses,external opportunities and threats. Based on the above, the article compared and analyzedthe feasibility of three competitive strategies, and then carried on the QSPM matrix to give some objective evaluations. After those qualitative and quantitative methods，thearticle concluded that differentiation competitive strategy was much suitable for thestatus quo of the company. In order to ensure the effective implementation ofdifferentiation competitive strategy, the paper proposed the implementationpath——product differentiation, service differentiation, human resource differentiationand brand differentiation, and also pointed out that SDGB Company should implementthe strategy by improving infrastructure of enterprise, improving human resourcesmanagement system, strengthening technological innovation and forging excellentcorporate culture.Competitive strategy ensured SDGB Company to adapt to the external situation,develop new markets, improve the core competitiveness, and ensured its rapid growthand long-term business development. The article was proposed some constructionobservations to SDGB Company, and can surely give references to other small andmedium-sized electric company. In a word, this paper has some practical value andsignificance not only in terms of practical application but also in the study of the theory.