A Research On The Differentiation Strategy For ABB Robotics

With the rapid development of information technology and digital innovation, people, devise and service are more virtually connected than ever, boosting unprecedented attention on the robotics industry. Ever since the German government raised the concept of industry 4.0 in 2012, industrial robotics division has become ABB’s strategic unit with highest potential in revenue growth. However, the emergence of huge amount of start-ups in the robotics industry has largely intensified the competition. Sales revenue generated from ABB industrial robotics division still lags behind that from other divisions in the group. Thus the adjustment and optimization of the differentiation strategy is increasingly recognized as the substantial enabler for ABB robotics to stand out in the game.In this paper, an extensive literature review on the relevant concepts, definitions, theoretical tools and approaches in strategic management including PEST analysis, Porter’s Five Forces Model, SWOT analysis as well as in differentiation strategy is conducted to assist in finding out the internal and external environment of ABB robotics including but not limited to industry attractiveness, competitiveness and its core competence. It aims at evaluating the feasibility of an effective implementation of a well-designed differentiation strategy through discussions on product, marketing and service differentiation to improve the outcome and increase sustainable profitability of ABB robotics. Last but not least, the risk management before, during and after the implementation of differentiation strategy is discussed.This paper puts forward suggestions on how to optimize ABB’s differentiation strategy with Internet thinking with the intention to serve as a good reference and inspiration for the Chinese companies in the same area on how to build and optimize a differentiation strategy and to gradually improve market competitiveness.