Research On K Company’s Strategy For Air Brake Product In Market Competition

Along with China’s demand for advance foreign railway product for it rapid railway industry development, K Company as a foreign railway air brake product provider entered China Market. After years of development in China, it has quite a large market share, however, domestic companies emerged by advantage of the localization policy and government support, such as Zhuzhou Electric Locomotive Research Institute of DK2 system, Qingdao Sifang Institute JZ8 air braking system, they are quickly nibbling away K’market share. Thus currently, a furious competition market is confronting foreign and domestic companies of this production. Considering the market environment, competitors, industrial policies and other factors, K Company’s market share going down has been inevitable. In this case, it is very important and urgent to analyze all kinds of factors and trends, to develop an effective product strategy to maintain the leading position in the market.This paper reviewed various related competition theories and analysis methods. Specifically research on K Company’s external macro environment, industry environment and enterprise’s own micro environment, three main competitors and its monopoly end user, it own merits and weak points has been done by diamond model analysis, PEST analysis,4P model, Michael Porter’s Five Forces Model, SWOT analysis. These work of analysis provide base information and evidence for conclusion drawing of K company’s product competition strategies.Lastly, as a conclusion, suggestions have been put forward that K Company should take following strategic measures to maintain and even strengthen its China market position:to deepen cooperation with CR’s affiliated research institute, to accelerate its next generation of air brake product; to lower cost by technology transfer, localization and efficiency improvement on resources, to real-time monitor market status and improve customer demand forecast for production optimization; to enlarge product differentiation by enhance R&D.