The Development Strategy Study Of HD Company

At present, China's economy has entered a new normal state, facing a lot of challenges,especially in the manufacturing industry, need transformation and upgrading urgently. In recent years, although China's automotive industry development momentum seems good,sales of Chinese local brands continued to grow, but the overall development of automotive components industry did not keep pace with the development speed of the auto industry,many this type of companies falls into difficult position.In the past, HD Company is a state-owned enterprise, although there are some shares owned by German company, but they do not participate in company management. Since the business in trouble,HD was acquired by a private enterprise,run as a subsidiary after its parent company backdoor listing successfully. Because of Chinese manufacturing industry is under overall downturn in recent years, HD Company's profitability is also not very good,struggled under the strong support of parent company.Based on the actual situation of HD Company and the external environment, this paper discusses the strategic development of HD Company. Firstly, the external environment of the enterprise is analyzed by PEST model, and the competitive structure of this industry is analyzed by using the Porter's five force model. The external opportunities and threats of HD are analyzed by external factor matrix. And then analyzes the internal environment factors of HD Company, through the enterprise R & D, brand and cost and other aspects of the analysis, summed up the HD Company's strengths and weaknesses, and using internal factor evaluation matrix to analyse the level of HD Company internal resource management.Using SWOT analysis to analysis all strategy of HD Company from the quantitative data of EFE and IFE, and using quantitative strategy evaluation matrix to evaluate all strategic portfolio, It was concluded that WO strategy was the most suitable development strategy for HD company. Finally, put forward the specific implementation plan of HD Company's development strategy, through the transfer of manufacturing base to the central and western regions, mergers and acquisitions of core outsourcing suppliers, factory automation upgrades and other means to reduce costs, and by improving research and development capabilities and other measures to set up a solid foundation for the next step development of HD Company.This paper provides the decision-making suggestions for HD Company which in the dilemma currently, and provides specific strategic measures for the development of HD Company, and also provides reference methods in strategy formulation of other similar enterprises.