Studies On The Competitive Strategy Of Shantui Engineering Machinery Co. Ltd

The engineering machinery plays an important role in national economical and social constructions and is one important industry for measuring the technical levels of one nation. The engineering machinery in our country began to develop in 1960s and has gone through more than 50 years to develop whose property has owned certain scope. In 2003, the sales volume of our country’s engineering machinery has been over 100billions yuan. In 2008, for being affected by the financial crisis, our country started "4000billions" investment project which led to the rapid increase of our nation’s engineering machinery in the next three years by over 25%. In 2011, the sales volume of the industry has achieved 510billions yuan. But since 2012. The debt crisis occurred in European areas and the side-effects of our nation’s "4000billions" investment project appeared. The domestic real estate market get macro-control, investment and financing policies become narrowed and the economical downward trend become obvious. The engineering machinery industry has changed the high-increase of the previous years and the market demands became sluggish and part of products had excess capacity, the overstocked products appeared and the industry become low and sluggish. Many enterprises is in standstill and even in negative growth and the whole industry entered into the "cold winter"To make sure that they can survive in the low economical situation and cruel competition environment, the enterprises of engineering and machinery have to know the industrial development situations and the company’s own conditions in time and make efficient and practicable development strategies. This thesis selects Shantui Engineering Machinery Co. Ltd as the research sample and teases the company’s resource conditions from the perspectives of enterprise brands, human resource and technical resource, analyzes the company’s own abilities from the perspectives of finance, production and manufacture, quality control, marketing, research and development and after-sale and discusses the company’s institutional factors from the perspectives of training, employment and wages. Through this three different perspectives, we can have a clear recognition towards the internal conditions of the company; analyze the company’s macro environment and industrial environment by adopting PEST and Five Forces Model. Lastly, compare the internal advantages and disadvantages and the external opportunities and threats by adopting SWOT methods to analyze and form the company’s strategies.Through analysis, this thesis holds that Shantui Engineering Machinery Co.Ltd should adopt the development-oriented strategies and the basic competition strategies should select the strategy of the cost leadership and integral difference. And because the domestic and foreign environments are different, Shantui Co. Ltd mainly faces the domestic manufactures in domestic areas and although the overseas giants have entered into the domestic market, the local manufactures still take the leading positions and the "price battle" is rather cruel, so it is not a good strategic method for the domestic market to constantly adopt low costs and the domestic market should take the differential strategies as the centers and take low costs for the products which owns high markets occupancy and high sales volume in bulldozer industry; and the foreign markets should face the direct competitions from the international advanced manufactures such as Caterpillar and Kotmatsu. Our nation’s engineering machinery enterprises can fully exert the advantages of low production costs in domestic areas and seize the oversea market shares with cost performance and develop differential competitions faced with the overseas markets which has got it’s pants on, so the overseas markets should take the cost leadership strategy as the main part and is supplemented by the differential strategies. Lastly, this thesis proposes practical measurements in the aspect of strategy implementation which mainly includes nine aspects of brand construction, organization and structure, human resources, purchasing, production, quality, technical innovation, marketing and cultural construction. It also divides the implementation stages and clarifies the implementation barriers and key control points to try the best for the smooth implementation of the company’s strategies.There are many analysis methods in strategic management theories, this thesis adopts the most common analysis for internal environment and external environment and proceeds the pilot studies for the development strategies of the selected Shantui Engineering Machinery Co. Ltd by adopting the theories and methods such as PEST theory, the Five Forces Model and SWOT analysis. It provides one strategic selection project for the company and at the same time provides one development thought for the other domestic manufactures of engineering machinery.