Development Strategy Of LH Company

With the gradual warming of the global climate and continuous reduction of conventional energy, energy saving and environmental protection have become the theme of development around the word. While the high energy consumption of incandescent lamp, which means more energy consumption of coal and other resources, emissions of more carbon dioxide, which is clearly advocated the current energy conservation and emission reduction. Based on this background, it’s considered that the application of LED lighting, which is the representative of the green and environmental protection, has gradually been familiar with and accepted by people. According to statistics, the global LED market size has nearly $20 billion in last year, compared with 2013, an increase of more than 35%. The broad market prospects are attracting a large of money into the LED lighting industry, which leading to increased competition in it. So it very meaningful and necessary to strategic analysis for domestic LED lighting companies by using the strategic management theory and tools.LH company is a typical small and medium private enterprises and who into the LED lighting export markets in 2008. The paper takes LH company as an example to carry out strategic analysis and strategic design. And I am expecting the relevant theory and methods of strategic management can provide strategic support to LH company who is in a fierce competition.Firstly, this paper reviews the theories of strategic management, and then overall analysis of the industry and competitive state of the global LED market by using analytical methods of PEST analysis and Porter’s five force model, ect,. It is clearly the development opportunities and challenges which LH is facing. Then, we analyze the internal advantages and disadvantages of LH company after conduct field research. Using the SWOT analysis to analyze various internal and outside factors of LH company, then we can get some combination strategic.Secondly, though the implementation of strategic analysis and evaluation of LH company about cost leadership strategy, correlation diversification strategy and cooperation strategy, combined with the mode of LH company only to provide DMS service for large customer, then we can determine the LH company’s development strategy.Finally, about the strategic implementation of safeguards measures, the paper proposed LH company to strengthen the system construction, improve the basic management, improve the marketing system, to accelerate personnel training, then using brand and scale effect, for the LH company achieved total cost leadership strategy, vigorously develop regular customer markets, and provides safeguards for increasing market share; through existing market channels and technologies to related diversified, reducing the company’s business risks; through cooperation with major suppliers strategy to enhance the product quality and shorten delivery levels. I hope that through the implementation of portfolio strategy, can enhance the LH company’s core competitiveness.In this paper, the research process adhere to the scientific theories and methods of strategic management as the guide, insist on taking the actual operation conditions as the foundation, based on combining theory with practice, and strive to make the process of strategic analysis and the development of more scientific and reasonable, in order to obtain realistic strategic combination, we hope that this research can provide some reference for the growth of LH company.