Research On New Product Development Strategy Of KLH Company Based On Differentiation

After a long period of rapid development,China's economy has gradually entered the track of medium speed development,structural optimization and innovation have become the main theme at the present stage.In this context,foreign trade export enterprises are facing the double pressure of internal and external difficulties: the European and American economy,the decrease of foreign demand,and the intensification of export competition;the rising cost of domestic rent,labor,raw materials and financing.The future development of foreign trade enterprises has been faced with great challenges.It is urgent to achieve sustainable development by upgrading the product development and innovation capability of enterprises.KLH is a Shenzhen furniture enterprise founded in 2000.Their main product is barstool furniture.Through good cooperation with the big store,the market share of the American barstool furniture has been maintained in the top three in recent years,and the business situation in the Chinese market has a good trend of development too.KLH has accumulated more than 10 years of experience in the furniture industry,and has always been in front of its competitors in product development and design.But at this stage,the main products are facing the adverse situation of market saturation.The company's previous development strategy,which is mainly cost leading,is not in line with the environment of the domestic and foreign market of consumption upgrading.It should be transformed into a development strategy based on differentiation,and the core competitiveness of the enterprises is promoted through innovative design,especially in the market.The development of differential and characteristic products is hard to develop products that can meet the new needs of market consumption upgrading.This requires a comprehensive and systematic analysis of the company and a new product development strategy which is in line with the development of the company.This paper will use the theoretical knowledge of modern enterprise management(the theoretical knowledge of product development,strategic management,differentiation strategy,etc.)as well as a variety of analytical tools(PEST analysis,Potter five force analysis,SWOT analysis and other analytical tools)to study and create the new product development strategy based on the differentiation of KLH company.The main contents include: A> it introduced the knowledge of differentiation strategic theory.The ultimate goal of the differentiation strategy of enterprises is to cultivate the core competitiveness of enterprises and realize the healthy and sustainable development of the enterprises.B> summarize the current situation of new product development in furniture industry,understand the current situation of the development of the industry and the development trend of the industry differentiation.C> analyze the external macro environment of KLH company,and conclude that the main opportunities of KLH company are: good prospects for the development of furniture industry,increasing demand for consumer upgrading,and good cooperation with large customers.The main threats are: the saturation of the existing product market,the high price of raw materials and the rising cost of manufacturing,and the change of market demand makes the competitiveness decline.D> the internal environment of KLH company is analyzed,and the advantages of KLH are summarized as follows: strong product design ability,strong brand effect and good financial condition.The disadvantages are: reduced turnover,reduced profits,imperfect development process,and inadequate new product lines of distinctive furniture.E> on the basis of the internal and external environment analysis,KLH company has carried out the strategic choice of product development,and determined the direction of differential product development(i.e.,developing middle and high end furniture),and determined the strategic goal and growth path of product development at the same time.F> Finally,the longterm,medium-term and recent development goals and focus of the implementation of the strategic implementation are also put forward,as well as the implementation of the safeguard measures: streamline organizational structure,optimization development process,human resource support,and information construction.