Research On Competitive Strategy Of GTEK Company’s Micro Speaker Business

In the 21 st century today, mobile phones have become indispensable items in people’s life. According to the Market research firm IDC, the global mobile phone’s shipments reached 1.8 billion units in 2013. With the enlargement of the mobile communication network in the global scope, increasing consumer demand has become the driving force to expend mobile phone industry.Micro speaker is one of the most important components for a mobile phone. High quality speaker is the key for a mobile phone that can have a good sound quality to deliver the good sound. With the development and rapid growth of the mobile phone market, the micro speaker business has been expanded. GTEK is the national high and new technology enterprise which successfully listed on the Shenzhen stock exchange in May 2008. Main business focuses on the electro-acoustic device, photoelectric products, electronic accessories and LED encapsulation, also including development, production and sales for these related products. In the field of micro speaker/receiver, GTEK ranks in the second place in the same trade and in the third place globally. GTEK adheres to independent innovation and focus on acoustic technology in order to committed to become the world’s first-class acoustic overall solution provider. With research and development strength, the production technology level, cost advantage and high quality management team, GTEK won the high quality customer resources including Samsung, Apple, Nokia, LG, Huawei, Lenovo, ZTE, OPPO, Coolpad,Microsoft, Amazon and so on. It has made a favorable competitive position in the acoustic industry. In 2013, the company annual sales income was over 10 billion RMB and got the net profit growth of 44%. However, Micro speaker business is also facing some problems in the rapid development and expansion at present. GTEK set up "the big customer strategy" at the beginning of micro speaker business in 2005. So it focused resources and service on a particular customer group such as Samsung, LG, Nokia, Apple etc. GTEK benefit from the rapid development of these customers and got rapid development to compete in a wide range of rivals. But now when domestic mobile phone manufacturers started to expand, under the centralized competitive strategy of company, how can the company to adjust and balance the resources to keep its competitive advantage? Although in a few years the company’s internal resources of vertical integration help the company to enhance the ability of corresponding and the corresponding speed. And also the project team has won the acceptance of the customer.But in the current rapid development of domestic mobile phone which is "high-end with lowprices", how to deepen the company’s vertical integration strategy? How can the company form their cost advantage to follow the footsteps of customer on the basis of focus strategic?All of these are the new challenges and uncertainties. Therefore, based on the background, the immediate problem is to analyze and study GTEK micro speaker business of keeping competition and sustainable development by a review of the company’s competitive strategy and establish feasible implementation safeguard plan.This Paper is a total of seven parts. The first part is introduction describing the research background and significance, research content and objectives, research methods and main findings. The second part is review of relevant theoretical basis. It reviewed the research status of domestic and foreign enterprise strategy and competition strategy. And it also explained the competitive strategy analysis tool that used in this paper. The third part is about the GTEK micro speaker business competitive strategy analysis. In the aspect of internal environment, this paper introduces GTEK Company’s basic situation, the public resources and the core competition ability and value chain analysis. In the aspect of external environment,the paper analyzes the macroeconomic environment and industry competition environment.The fourth part is SWOT analysis for GTEK micro speaker business. Using the SWOT tool to analyze the strengths, weaknesses, opportunities and threats and get the portfolio analysis conclusion. The fifth part is the choice of GTEK micro speaker business competition strategic by the comparative analysis of the total cost leadership, differentiation and focus strategy. The sixth part put forward strategic safeguard measures for GTEK micro speaker business competitive strategy. The suggestion includes marketing structure adjusting, research and development platform, cost-down of production, the life cycle cost management, the internal resources of centralized optimization etc. The seventh part summarized the full text. It is necessary and urgent for GTEK Company to implement focused cost leadership strategy. At the same time the implementation of the strategy of cost is not a single aspect, it needs internal resources in the market, research and development, production and integration to carry out cost reduction measures to ensure the implementation of cost leadership strategy.However, this paper also has deficiency in the study of competitive strategy control because micro speaker business market is fluctuant and uncertain. So competitive strategy is dynamic and it also needs to strengthen the competitive strategy of control. At the same time, there is also some deficiency on the persuasion of actual market data analysis and the dynamic data analysis...