Competitive Strategy Research Of BC

Scientific management of enterprises is becoming more and more important while the development of economy and society,and the upgrade of economic structure are being on the fast way.A set of scientific enterprise competitive strategy can help enterprises themselves to obtain a favorable market competitive position based on the perception of the internal and external environment.It also helps to detail the strategic planning and objectives for a certain period of time in the future,and to point out one shared enterprise objective and orientation to all stakeholders.This would help to enhance the cohesion and centripetal force of enterprises,at the same time optimizes the efficiency of resource utilization,improves the core competitiveness of enterprises.Not only for big-scaled enterprise,but also for weighing industry in which most are middle-small sized corporations,.the research and application of strategic management theory are very significant and practical.The company,BC,has been settled down in China and Asia market for more than 10 years,but till today,the performance is still a little bit far from expectation.Regarding this basic scenario,it is planned to apply strategic theory to analyze its internal and external environment,get a clear picture of the threats and opportunities of this company.Based on this,one competitive strategy will be worked out which is feasible and suitable for the company,to support BC acquiring its business objective and sustainable development.For external macro environment,PEST analysis is adopted,and Porter five-force model is used to analyze the ecosystem situation in weighing industry.For internal environment analysis,value chain analysis(VCA)is used,to clearly draw out what are the company’s strengths and weaknesses.For summarization of environments analysis,internal factor estimation(IFE)matrix and external factor estimation(EFE)matrix are worked out.Opportunities of BC include:the domestic political situation is stable;National economy will remain in the long-term steady progress of development;relatively abundant labor resources;with two-child policy release,the population structure will be optimized;the major economies is slow recovery;The new industrial revolution ushered in a new opportunity for the development of weighing industry;weighing product substitutability is week;the whole weighing industry enterprises are relatively strong bargaining power against buyers;new business opportunities is booming,such as the smart manufacturing system requirements under the circumstances of integration of informatization and industrialization.The main threats of BC includes:International unstable factors increases,local conflicts exist for a long time;domestic and international aging population will keep increasing;fierce competition among middle-low end weighing equipment suppliers;low entry threshold of middle-low end weighing device market,causes lots of new potential entrants;there are still barriers for the mutual recognition of metrology laws and regulations.Cost of human resource and material cost are increasing.Strengths of BC include:Relatively rational corporate function structure;supply chain management is good;the company has passed ISO9001 quality system certification;manuf-acturing capacity is enough for standard product delivery;independent R&D team,with new product development and system integration capacity;rich product portfolio;leading technology while comparing with competitor’s product;the German brand with good reputation;corporate governance concept is advanced.The company disadvantages faced mainly are:the company’s perception of the crisis and the opportunity is week;no clear measures to reform itself from equipment supplier to the solution provider;operation capability is insufficient for non-standard/customized order;the construction of human resources system needs to be strengthened;service ability and service management needs to be improved;the retail product line is not entirely fit the Asian market;support from headquarters to BC needs to be strengthened.After SWOT analysis based on the result above,strategy analysis and strategy choice are followed.For BC,it is reasonable to adopt the strategy of differentiation.Roadmap(three steps)for implementing the strategy is designed and more efforts will be paid on brand building,differential pricing,differential building of sales channel,and enhancement of "R&D capabilities"&"R&D differential".At the same time,safeguards programs of strategic implementation are defined on organization structure,enterprise culture,HR,infonnatization,and capital supply,etc..After all above,creatively one set of suitable competitive strategy are made based on all-sided situations of BC.It is meaningful not only for BC but also for the companies which are set up in China or other countries in Asia by parent company abroad to build up their own competitive strategy.