Study On Strategic Management For Mechanical Equipment Manufacturers

Manufacturing is considered to be the foundation of national economy. It is also the driving force behind China's economic development. Since the implementations of Reform and Open Policies, Chinese manufacturers have utilized the advantages of low labor and material costs for its vast exporting business. However, such advantages have been vanishing since 21st century while domestic manufacturers used to pay less attention to technical contents. The overall cost leadership, which is based upon labor incentive products as well as services, has been no longer competitive.The current development strategy for manufacturers is to upgrade themselves from commodity suppliers to business partners. As defined in Global Value Chain for advanced manufacturers, their ultimate target in markets is to provide integrated solutions for their customers, which are based upon the combination of commodities as well as technical solutions/services. More interactions between them and their customers shall be encouraged to allow more direct technical communications, during which manufactures will be able to create more customer values.This paper focuses on the development strategy of Morimatsu China Group by utilizing different theories and tools including PEST Analysis, Internal/External Factor Evaluations, Porter's Five-Force Model, SWOT Matrix, etc. The environment and background for Morimatsu China's strategic management is critically reviewed. How the strategy is implemented and ensured has been introduced.At the end, this Paper critically reviewed the development strategies of Morimatsu China and made suggestion to other based-in-China manufacturers. In addition, some general challenges for manufacturers'strategic development have been also raised and discussed for future study.