Study On The Differentiation Strategy Of MINTH Group

With the quickening pace of the economic globalization, the auto spare parts manufacturers are not only facing the competition from domestic companies, but also from the worldwide leading companies. The market competition is becoming increasingly fierce, economies of scale strategy and pursuing of cost reduction blindly cannot adapt to the violent competitive environment already, this situation compels these companies in search of brand new competitive strategy. With the promotion of the technological level, production homogenization phenomenon becomes a choke point to the development of the auto spare parts companies, in order to keep a advantageous status in the competition, the company must produce high quality, high precision, difficult imitation and unique productions, so differentiation competitive strategy should be the best choice.First of all, the text analyses the current situation and the problem of MINTH Group, presenting the two problems that the company is facing now, first, there is no clearly competitive strategy for the company. Second, the company has the capacity to produce high quality and unique production, but the company never puts forward the differentiation strategy. The second part is the analysis of the competitive environment with the application of the five force model. Moreover, the writer analyzes the micro-environment, auto parts industry environment and competitor current situation, on the base of these analysis, the text summarize the external environment the company is facing now. Then, with the using of the value chain analysis theory to find the main activity during the value creating activities, and analyze the company’s capacity and resources one by one, seeking out the core competitiveness and deficiency. Beside, by using SWOT theory analyze the company’s advantages and disadvantages, the opportunities and challenge. After combination of the advantage and the opportunities, we can get the most suitable strategy for MINTH Group. Fourthly, from Porter’s competitive strategy theory, weknow that there are three competitive strategies: cost leading strategy, differentiation strategy and focusing strategy. Fifth, the most suitable strategy for MINTH Group is differentiation strategy after matching the internal and external environment of MINTH Group and the three competitive strategies one by one. Sixth, after choosing the differentiation strategy, the company should make up specific implementation process; clarify the implementation step and procedure. Seventh, to make up the implementation content of differentiation strategy, including production differentiation, marketing differentiation, technology research and development differentiation. Eighth, through using the comprehensive fuzzy evaluation in mathematical model, to evaluate the implementation effect of the differentiation strategy, ensuring the strategy can be implemented effectively. At last, to confirm the implementation guarantee of the differentiation strategy, so that the company can hold the advantage and achieve a sustainable development. The research result of this paper has practical value to promote self competitive advantage and occupy leading position in the market.