Research On Product Innovation Strategy Of LY Company

Along with the arrival of the globalizing market competition and information era in recent years, enterprises are facing changeable business environment and fury marketing competition. In this background, with the fast propulsion of massive capital investment and industrialization, many domestic powerful aluminum corporations accelerate the exploitation of aluminum profile (the important applied material in construction and mechanical industry) after noticing that its application field has been expanded quickly and that the market demand for its new green products has risen sharply. The development cycle has been shortened. As a result, many small and medium sized aluminum enterprises are facing increasing competition. Therefore, rather than improving managerial effective, sustainability of enterprise growth becomes more urgent and important to administrator. Accordingly, the efficiency, effect and progress of products innovation are important factors that affect an enterprise’s competitive advantage and sustainability.In this context, more and more business owners realize the important contribution the products innovation has done to their enterprises’sustainable growth. They attach more importance to product innovation and development. Limited to "boss-is-the-owner thought", "boss-makes-decisions system",and family management, the characteristic features of many small and medium sized private enterprises, products innovation is limited by the thought and lack an integrated plan and a product development tragedy. Many abuses occur, such as lacking systematization in innovative models; following blindly in products innovation; lacking forward planning and sustainability in innovative market; researchers’lacking motivation;low innovative efficiency and one-time success rate. These abuses exist not only in LY Aluminum Corporation Ltd.--the research subject of the paper, but also in other enterprises of the same industry, and what’s more, in most small and medium sized private enterprises. How to set up an effective management system, promote market prospective and achieve sustainable development of products innovation are the core problems studied in the paper.LY Aluminum Corporation Ltd.(LY) is the research subject of the paper. It is a aluminum profiles professional manufacturers where locates in Nanhai District, Foshan City, Guangdong Province, which is the world’s biggest aluminum profiles industry base. Products mainly include bridge-cutting aluminum profile, reflection glass curtain wall aluminum alloy, industrial aluminum profiles, which are widely used in the fields of construction, automobile industry, rail transit, and aerospace, etc. LY is a National High-Tech Industrial Enterprise; it owns a China Famous Trademark. Its R&D center has arrived the Provincial level and worn the honor of Provincial Enterprise Technical Center and a Provincial Engineering Technical Center. In 2013, it received a national project supporting fund.Applied in this paper are innovation theory, products innovative models theory, products innovative basic process theory, combined with some management tools such as SWOT、PLM, and Juran Spiral Cycle, etc. By pooling resources in many aspects and analyzing them extensively, the paper points out problems existing in current products innovation, meanwhile redefines that Aluminum profile apply fields, new function, and how to use new product structure, new material, new technology in the corporation’s products innovation design. At same times LY establish the products innovation idea of "3synchronization" that is " producing, R&D-ing and concept R&D in advance’ as well as "new products innovation strategy" that is "meeting market requirements or/and future requirements or/and potential needs". The emphasis is on rebuilding the organizational structure of the research and development (R&D) center, repositioning its function. To reach the strategy aims, it elaborates the key process of new strategy’s organization and performing, organization guarantee and promoting R&D basic support capability in the following aspects: R&D Process Reengineering, deploying performance evaluation and incentive mechanism, improving support capability, establishing innovative products’ quality control system, management control of innovative process and producing innovative products, etc. In the end, the paper testifies new strategy’s implement effect from four aspects:improving innovative efficiency, intellectual property, enterprise benefit and social benefit. By doing so, it proves LY’s products innovation strategy is effective to make forward plan in the product innovative market, which has reference value in solving some common problems existing in products innovation of the same industry.