Research On Competitive Strategy Of Changho Technology Company

Changho Technology Company(called “Changho” for short herein)is an independent distributor specializing in electronic components distribution and was established less than four years.Thanks to the fantastic social resources from the founder built up in the old days,the company has successfully made a way out through the very tough beginning and step into the fast growing stage,which creates a solid base for further development.However,due to the downturn of global economy and the increasing transparency of information for the distribution industry,Changho is currently facing the situation that the growth rate of sales turnover has been gradually slowing down,as well as the profit decreasing,which drives us an initial judgment that the company is falling into the mature period from the growing one that is with rapid growth but very short time.Under the background of the government vigorously promoting the structure upgrade to China semiconductor industry,Changho has started to think about the company's best competitive strategy,along with optimistic prospect to China semiconductor market in medium to long term future.Basing on the theories of Strategic Management and Competitive Strategy,the paper starts with the analysis of distribution industry for electronic components and also the existing problems for the company Changho.With the application of PEST model,Michael Porter's Five Forces Model and other tools,key factors that influence the company competitive strategic decision are well identified.Besides,the paper makes use of the External Factor Evaluation(called EFE for short herein)Matrix and the Internal Factor Evaluation(called IFE for short herein)Matrix,plus another analysis about related competitors,so that the situation of Changho is clearly presented.Combined with the Strengths-Weaknesses-Opportunities-Threats(called SWOT for short herein)Matrix to help match,the best competitive strategy Differentiation is concluded according to the scores of Quantitative Strategic Planning Matrix(called QSPM for short herein).That's to say,it is proposed to take current superior RF PA chips as the company's core product and extend to more brands of RF PA chips but keep focus on RF PA marketing,which is the way to strengthen the ability of the differentiated supply chain service focusing in a more specific market.Finally,certain safeguard measures are recommended to implement,so as to ensure the smooth progress of competitive strategy Differentiation.The purpose of this paper is to analyze the opportunities and threats from the external environment,and also to identify the company's internal strengths and weaknesses,and then match the strategies according to the scores of key factors from SWOT & QSPM,so as to select the most attractive competitive strategy for Changho.It is critical to seize the opportunity and make full of the company's advantages,however try to avoid the Threats and Weaknesses to the maximum,which will provide the possibility of sustainable development for Changho.The thesis also provides scientific research method and idea about how to analyze competitive strategies for trade distribution industry of electronic components.