Research On The Competitive Strategy Of CS Company

PCB industry is the basic and supporting industry of electronics industry. PCB is widely used in many fields including computing, telecommunications, consumer electronics, automotive, aerospace and industrial product etc. While electronic products are getting smaller and more multifunctional and are more quickly updated and less expensive, PCB(Printed Circuit Board), as the basic supporting component, also faces the same problem – customers continuously requires to lower price while their design is more and more difficult. As a high-tech company specializing in manufacturing multilayer and HDI PCBs, CS Company is advantageous in terms of technology, quality and service. However, the Company suffers from insufficient capacity and high production cost. How to find a differentiation way fit for CS Company's development in severe market competition? This is the issue which the Company's management has been thinking and exploring.This paper, taking CS Company as research objective, firstly,based on analysis of company external environment by using PEST and Potter's Five Force model, determines the opportunity and threat of the Company – huge development potential for high-class market like multilayer and HDI PCB which is encouraged by the state while problems likes strict requirement of environmental protection, recruitment difficulties and management difficulties of staff of new generation. Secondly, based on analysis of company internal environment including development history, resource, ability and core competence etc., this paper determines the advantage and disadvantage of the Company – obvious technical, quality and service advantages, rich customer resources and good brand image while insufficient capacity and high production cost. Thirdly, based on SWOT analysis, this paper determines that CS Company shall adopt differentiation competitive strategy – product differentiation with production mainly focusing on PCBs of high technology difficulty and high reliability and with market strategy of high mix low volume; flexible production mode with continuous leading edge of technology and adherence to concept of “quality first and service first”. Finally, this paper introduces the improvement and guarantee measures to be taken in order to ensure successful implementation of competitive strategy –the establishment of efficient R&D management system, the establishment of strict quality management system, the optimization of human resource management system, strengthen corporate culture construction and the fulfillment of of social responsibility.The author of this paper, by making good use of the knowledge of enterprise strategy management and combining theory with practice, has conducted in-depth research towards the competitive strategy of CS Company. The author hopes to provide reference to CS Company's formulation and implementation of competitive strategy. This paper also has reference significance to Chinese PCB companies of small and medium scale which is facing strategic transformation.