The Research Of T Company's Business Strategy In China

PCB(Printed Circuit Board)is the fundament of all electronic products.Its production plants concentrated in Asia area,especially China.As new markets and/or new products emerge,demands for HDI(High density interconnect),flex board,rigid-flex board and substrate board becomes more and more.In recent years,PCB companies of Taiwan,Japan and Korea are all stepping up the development of Chinese market because of economy slow down and oversupply,resulting in intense competition.US based T company acquired Meadville(Hong Kong)and Viasystems(US)in 2010 and 2015 respectively,achieved sales growth by leaps and bounds,became a global company,expanded its businesses of military,defense,and aviation,penetrated into the markets of consumer electronics and automotive electronics.Company T re-organized its structure after A&M,set up vision to provide one-stop solution via diversified products.But it met a lot of problems in Chinese market and customers.some customers stop cooperation with Company T any more,and order shrink quickly.This paper focuses on what strategy that company T will take under current resources & capabilities to develop and maintain Chinese customers and to achieve sales growth according with the enterprise vision.This paper will use strategy tools to do analysis of internal & external environment of Company T within Chinese market,with author's working experience,the interviews with internal management,competitors and customers,the reading of annual reports and third party report.Choose the differentiation strategy and make plans to solve the problems in Chinese market,after considering the Company T's vision and its core competencies.Summaries of analysis as follow:1st,Company T's version is to provide one-stop solution service to customers.its core competencies are the ability to produce a variety of products and the elites that understand diversified PCBs.2nd,Most of Chinese customers that make single product do not have chance to take advantage of Company T's core competency of making diversified products.And Company T's limited capacity and resources could meet all customers' demand on price and lead time.The solution is to choose differentiation strategy.Narrow the scope of business in China market,focus on target customers,to give up the pursuit of low price customers and centralized resources to support high value customers.3rd,Through the high value-added products and services to meet the diverse customer needs to achieve differentiation strategy,while looking for new core competence.