Research Of K Multinational Automotive Parts Company Development Strategy

Since 90 s,with the further deepening of China's reform and opening up and the development of the globalized economy,the production and development of MNCs have also made unprecedented development.They are important factors affecting the development of the world economy.With the development and take-off of China's economy and the huge demand of auto market,the major auto parts manufacturers all over the world are constantly entering the Chinese automobile market.With their rich experience and advanced technology,they have a relatively obvious advantage in the auto parts market over the past twenty or thirty years.But as the external environment continues to change,such as the rapid development of local enterprises and the slowdown in the growth of the automobile industry,they are also facing many challenges and risks.It is the author's thinking that his own development strategy can take the lead in market competition and remain invincible.This thesis mainly refers to the working experience of my company,K multinational automotive company.The main strategy of K Company at the beginning of its establishment is to locate China as a production base and Trade Center.On the one hand,this is due to the customer needs,the auto manufacturers and the first level auto parts suppliers often require their own suppliers are located in the country.;on the other hand,it takes advantage of cheap raw materials and labor cost in China.However,with the continuous development of business,K Company's self-production business started from two simple production lines,then extended to five production lines,also carried out some personnel localization,trade business is also in normal development.However,due to a variety of reasons leading to high cost,the company's self-produced products are basically a situation of loss.The market share of the trade business is gradually decreasing because of the increasingly strong competitors,and because of the rapid development of the automobile industry,the automobile manufacturers have to reduce the sales price by means of controlling the cost to compete for consumers.In this case,the auto parts manufacturer is bound to bear the pressure of reducing the price.The product difference is relatively small,the process and procedure are basically standard,the cost is rising,but the price is decreasing.The fluctuation of the exchange rate of the euro will also affect the purchase price because of the goods are purchasing from Europe headquarter,which eventually leads to the lower profit of the enterprise.Therefore,this paper intends to make a systematic analysis and Research on the existing external and internal environment of the company through the related knowledge and theory of strategic management,operation management,financial management,economics,and human resource science,in order to make suggestions for the formulation and implementation of the company's strategy under the coexistence of risk and opportunity.To provide some theoretical analysis for the company's better development.At the same time,I hope that this example can be a reference for the strategic analysis and formulation of other foreign enterprises in the same industry.