A Study On Development Strategy Of S Machine Tool Co., Ltd

The largest machine tool market in the world comes from China. Many foreign enterprises come to Chinese machine tool market, as their domestic market encountered supply decline.On the combined effect of the recession and fierce competition, the performances of S Machine Tool Co., Ltd have also fallen dramatically. The scale of growth stagnant encountered unprecedented crisis, based on the impact of the foreign and domestic competitors’ profit margins are squeezed.The traditional competitive model has been unable to change the current competitive landscape. S Machine Tool Co., Ltd has to look for the ways of development from a strategic perspective, so that it can reshape their own competitive advantage.Beginning with the strategic management theory, it takes use of S machine Tool Co., Ltd’s the internal and external environment to expand the paper writing. In the external environment analysis, the PEST model is used to analyze the overall environment factor, gathering information and interviewing to analyze the industry environment. Porter’s five forces model is also used to analyze the competitive environment, combining the use of EFE model to do the compressive analysis in external environment. In the internal environment analysis, the resource and capability are the two main aspects, which are used in the analysis of the internal environment, and the advantage and disadvantage from the internal environment are indentified, in the meantime, compressive analysis is given to the internal environment by the IFE.Based on the foundation of internal and external environment analysis, the substitution program is made by the using of IE and SWOT model, and further valuation and choice are made to substitution program under the QSPM model, then combing the enterprise goal to make the Strategic program. Finally, put forward the main strategic measures and suggestions.