Research On The Competitive Strategy Of An ODM Video Audio Company From The Global Perspective

E company, founded in 1992, is an ODM company of low & mid-range audio & video home theater electronics products with more than 2000 employees. Its main business is divided into 3 big sections, including marketing & sales, technology research & development and product manufacture. The annual sales are more than USD 100 million in recent years. The main customers are the top brand customers of audio & video electronics industry who come from Japan, South Korea, Europe and the United States.With China’s entrance into the WTO and the globalization of the market economy is accelerating, China’s low-end home audio and video electronic ODM company is facing fierce competition from around the world. However, at present, the competitive strategy of the majority of low-end home audio and video electronic ODM company is still in the scale of production, prices, quality and customer service simply. Meanwhile, because of the globalization, technology, information, raw materials and the talented person within the industry, can be quickly copied by competitors. Therefore, how to make full use of its advantageous resources available to create the company’s competitive advantage and improve its competitiveness is the key to a company to win in the competition in the global market. Under the environment of global competition of E company, in the face of the easy copy market of electronic products, also facing the cheap labor cost competition from foreign countries such as Malaysia and Thailand, the subject of how to protect the existing customer, how to develop new markets and new customer, and how to keep the sustainable innovation and development has become the urgent problem for E company to think and work out. Thus, it is necessary for E company to make a growth strategy of keeping pace with times and the sustainable development, set up a correct goal to let the company to remain invincible even face the increasingly severe competition from market.In this paper, we designed the framework of the global competitive strategy for E company by applying the theories and knowledge of competitive strategy:through the analysis of global macro competitive environment, analysis of competitive forces within industry, choice and evaluation of the competitive strategy, also use PEST analysis, Potter’s five forces model and SWOT framework to analyze completely the internal and external environment, the business opportunities and threats, advantages and disadvantages which faced by E company. And base on which, to provide the guidance and reference for E company to choose and make the global competition strategy.