| In recent years, the total output value of the LED industry is rising year by year with an average annual growth rate of about 30%. It is expected that the total annual output value will reach 500 billion in 2015.The SDKE company’s main business is LED chip package and has great achievements in high power LED lighting. Because of the rapidly development of the companies in the midstream of LED industry, there are a lot of new companies entering the industry every year. The price of the LED products reduces with the advancement of technology continuously. Therefore, the industry profits also dropped. The last round of state subsidies for the LED industry has just ended. A crisis of the companies in the middle reaches of LED industry is turning up. The SDKE company, which is spending the “cold winter†under fierce competitive pressures, should consider implementing a certain competition strategy to gain an advantage in the competition.In this paper, the SDKE company is analyzed as the research object, by using PEST analysis model, five forces analysis model, value chain analysis method and SWOT analysis method. The author analyzed the external environment and internal environment of the SDKE company, and acquired the suitable competitive strategy for SDKE company. Implementation and guarantee measures for the competitive strategy are also put forward in the end of the paper. By careful analyze and comparison, it is proved that differentiation strategy is much more advantageous for the SDKE company cost leadership strategy and focus strategy. It is point out that the differentiation strategy should be implemented in the product, service and market. To ensure the well effect of the differentiation strategy, five guarantee measures are suggested: innovating management system, optimizing organizational structure, reconstructing organizational culture, improving incentive system and establishing strategic evaluation system and correction system. |
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