Study On The Differentiation Strategy Of Home Decoration Industry In The Industry 4.0 Era

The integrated ceiling industry is an important branch of the home decoration industry.In recent years,accompanied by the prosperity of real estate for more than ten years,with the steady development of national economy,the rapid increase of people’s income and the change in consumption concepts,it is estimated that by 2020,the market capacity of integrated ceilings is expected to exceed 25 billion RMB.Due to the low barriers to enter the industry,enterprises and individuals have flown into this industry,making the current competition in the integrated ceiling industry extremely cruel.At the same time,in the upcoming era of Industry 4.0,the integrated ceiling industry is also facing the transformation and upgrading of the manufacturing model.Taking the industry leader and founder Y Company as an example,it possesses the industry’s leading research and development capabilities.However,along with the existing focus strategy development,Y Company’s market share is only about 3%,and in the first half of 2016,it was surpassed by the largest rival O company.Y Company is facing the problem of how to adjust its development strategy to enhance its competitiveness.This dissertation studies the competitive strategy of Y Company in the Industry 4.0 era based on competitive strategy theory and strategic analysis tools.First of all,in the application of the PEST model for analyzing the macro-environment of company Y,industrial 4.0 technology,China manufacturing in 2025,and the upgrading of consumer demand put forward new requirements for Y company’s strategic development,so that Y Company needs transformation and upgrading of manufacturing.Secondly,the SWOT model analyzes the company’s internal environment.Through analysis,it has been found that the Y company’s strengths are mainly its brand,product R&D,and sales service network;the major disadvantages lie in that the business is the over focus on the home decoration market,the unbalanced development of channels,and the low dealers’ capabilities;and the main opportunities are the rise of large-scale customization and Internet home decoration,as well as the development of rural e-commerce;and the development of the public decoration market;the threats are mainly the risk of dealers and stores management,and the risk of increasingly fierce competition in the industry.The conclusion of this dissertation is that the focus strategy is no longer adaptable to the development of the company.Y Company should actively explore the differentiation strategy oriented by Industry 4.0.The implement of differentiation strategy for Y Company can be achieved by production differentiation through production intelligence,product differentiation through product customization and intelligence,channel differentiation by strengthening the direct sales channels,public decoration channels,and rural channels,service differentiation through the service change by big data,VR and other technology.