Competition Strategy Research Of GF Company

With the accelerated integration of global economy, the international competition upgrades. Since reform and opening up, Chinese Economy has achieved about ten percentage in average, becoming the 2nd biggest economic entity (according to the figure of China Statistic Bureau, the GDP of China was 56884.5 billion RMB in 2013, increased by 7.7% compared with 2012). Foreign famous enterprises keep on establishing their own manufacturing bases and sales networks in China, trying to hold more market share with the advantages of both technology and capital. On one side, they are able to extend their product range with the relatively complete supply chain and cheap human resource; On the other side, the rapid growing market in China becomes the hot area in which the big enterprises compete hard. GF wheel(Suzhou) corporation Ltd, a German individual proprietorship, is established under this background, dedicating to sell high grade Germany made wheels to Chinese market and to produce high cost-effective wheels for the needs of other markets outside the world.With several years development, GF wheel has achieved a lot in his business of both trade and production. But with 7 years development, the scale of GF China to GF group is less than 5%, this is obviously not a good performance in relationship to the rapid growth of Chinese economy. Under this background, the article takes this factory as an example, explaining the opportunities and challenges, advantages and challenges of GF Company, made a SWOT analysis and based on this analysis, raised up that GF company should take differentiation as its competition growing strategy. At last, author raised up the advice of his own opinion about how to implement and control this strategy.The article adopts lots of analysis methods, such as PEST, Five driven forces, SWOT analysis, etc. It starts from the current situation and problems paid attention to the circumstance inside and outside the company. Specific idea is:first, with PEST analysis about the macro-environment; second, to analyze the advantage and challenge in its own wheel business, and, the strength and weakness inside its own cooperation; at last, author comes to the conclusion that GF company should take differentiation as the completing strategy and how to ensure and manage the development of this strategy.This article combines its own inside situation and the trend of the wheel industry, uses the way of linking the theory with practice, goes deep into the key issues about the development of the company, will be a meaningful advice to the development of this business and especially to GF company.