Study Of ABL Traction Equipment Company Development Strategy

Since entering twenty-first century, China railway industry is growing fast. Many international traction system suppliers enter Chinese traction system market through different channels. They make fully use of their advantages to expand market. In the meantime domestic traction system supplier are growing fast. Some domestic traction system supplier have become main supplier at specific traction system market. Other domestic suppliers use the opportunity and grow fast. This lead to the competition of traction system market become more and more rough. How to make full use of company’s advantage and expand the market? This have become the challenge of all traction system suppliers in the market. One solution is making proper strategy which is based on company’s external environment, resource and ability.The article is focusing on ABL traction equipment company (Brief in article as ABL company), applying strategy management theory and relative tools to study ABL company’s development strategy. Through analyzing ABL company’s operation condition, marketing condition, human resource, finance state, the author find out ABL company’s resources and capabilities. In the mean time, the author apply macro environment PEST tool and porter five force model to analyze ABL company’s external environment, find out ABL company’s opportunities and threats in external environment. Then author use SWOT Matrix to know ABL company’s development strategy status, expansion strategy status, backward integration,market penetration and product development strategy as ABL company’s development strategy. Through Boston Matrix analyzing, the author find out proper competition strategy for the company. ABL company need to adapt cost leadership as the basic competition strategy and adapt differentiation strategy at specific market.The study of this article can be applied at ABL Company, also can be used as reference for joint venture in the industry making development strategy.