Research On The Adjustment Of Auto Parts Company A’s Competitive Strategy

With the rapid development of automobile industry in China in recent more than 20 years,Auto parts industry has entered a rapid development period.The competitive pressure is gradually transferred from the carload manufacturer to the Auto parts factory.When the macro environment of the domestic,competitive environment of the wiring harness industry and the internal environment of the enterprise is changing rapidly,the enterprises hasn’t been getting the sustained competitive advantage under the traditional single competitive strategy,the adjustment of the competitive strategy on the business level has become the key to survival.Firstly,this paper reviews the literature on competitive strategy,then take the A company as an example,in order to adapt to the rapid changes in China’s auto market,and Maintain a stable competitive ability,be adjust the competitive strategy of enterprises has become an important topic of sustainable development.Then uses PEST analysis and five forces of competition model to analyze the A company on the external macro competition environment and industry competitive pressure,to fully understand the driving factors of A company to make strategic adjustment.The macro environment is conducive to the development of auto parts enterprises,However,due to the monopoly nature of the wiring harness industry with the decline of technical barriers,and new entrants are increasing,The industry presents the characteristics of technology,quality,cost and customer relationship.The competitive environment is getting worse and the low cost strategy with the malicious strategic competition,to increased the threat to A company’s development.Then use the RCV model from the internal conditions of A company,to explored the company’s internal resources and capabilities.Secondly,it uses the value chain analysis and supply chain evaluation to make clear the competitive advantage of the company.Finally,in order to ensure the implementation of competitive strategy,The concrete measures of enterprise organization structure,management mechanism,human resource adjustment and risk countermeasures are summarized.The research results that based on the analysis of the competitive strategy of A company in the new environment and a series of effective approaches to the implementation of the program,can play a certain reference role for domestic and foreign auto parts enterprises with high price sensitivity and fierce competition in China’s auto industry,to maintain long-term stable profit growth in the Chinese market.