A Study On Optimization Of Competitive Strategy For Lighting Industry In Overseas Market

Influenced by a downturn economy around the world, the export of lighting products from China has been severely affected. Under this pressure, more companies are involved in price-war. Moreover, the spectacular growth of LED industry chain has greatly intensified the competition among downstream lighting companies, and an industry-reshuffle is accelerating its pace.For EOS Company, a foreign trade enterprise managing lighting business, 2015 is definitely a difficult year: orders declined significantly, customers transferred orders to other rivals, cost rose and profits slashed. Therefore, how to survive in the increasingly competitive environment and deal with the problems has become a critical issue.This dissertation is composed on the theoretic basis of competitive strategies, some strategic tools have been utilized for further explanation, such as five forces model and value chain. It has made an objective and comprehensive analysis of EOS Company, including the external and internal environment, opportunities and threats, its strength and weakness. And after a thorough investigation on the strategies being adopted, the rooted cause of declining orders and slashing profit has been identified, and based on this, optimum proposals are put forward to improve the competitiveness for EOS Company.The whole article can be divided into 6 chapters: Chapter 1 provides research background and expiates its significance. The research methods and framework have also been introduced. Chapter 2 is literature review, focused on explaining the core concepts, relevant articles and analytic tools. Chapter 3 is case description, describing a historical development of EOS Company and the current issues confronting it. Specifically, its clients are inclined to shift their orders to other competitors. And the main content of Chapter 4 is about case analysis, in which both the external and internal environment of EOS Company have been explored, and the analytic tool value chain has been adopted to analyze the condition of a certain key value activities, aiming at finding the origin of competitive advantages. With a comprehensive command of its strength and weakness, opportunities and threats, the author hasexcavated the core competence of EOS Company, and has concluded that the optimization of low cost focused strategy is the key to gain competitive edge for this company. Lastly, measures to optimize low cost strategy are proposed from 4 perspectives: Control and Management of the Cost Optimization of Production and Manufacturing; Control and Management of the Optimization of Purchase Cost; Optimization of Product Development and Planning; Optimization of company organizational structure and human resources management.Moreover, this article aims to provide reference value for other foreign trade lighting enterprises when applying their competitive strategies.