The Research On Competitive Strategy Of YK Company

Chinese economic development has entered the “new normal” phase, profound changes have taken place in development model. Industrial automation market is facing new opportunities and challenges. The competition situation is more complex. Market players are facing more severe test. Traditional advantages of multinational corporations are waning, local companies are gradually becoming more mature. In order to consolidate the market position and occupy the market share, multinational corporations chose to enter the low-end market, establish the localization of the R&D, production and service system, and bring greater competitive pressure to local companies.YK company as a wholly-owned subsidiary of Multinational Corporation in China, it's the important strategic deployment of the multinational corporation to enter the low-end market, create the low-end brand and strengthen localization services. Facing the fierce competition in the low-end market, develop the right competitive strategy as soon as possible is the priority for development of YK company.Firstly, by analyzing external and internal environment of YK company to find out opportunities and threats faced by YK company, and the strengths and weaknesses of YK company, and then use SWOT analysis model obtain four basic strategy combination, and finally by using the competitive strategy theory and base on analysis above to determine its competitive strategy, which is combining with the target aggregation strategy and differentiation strategy, and also give advices of strategy implementation on marketing, product and service levels.The significance of this paper is based on the competitive strategy research in the segment market, and presents some proposals of implementing the strategy of localization. It can be referenced by similar companies when they expand segment market or research the localization strategy.