Research Of SC Company Competitive Strategy For Electrical Automation Business In Food Beverage Industry

SC is one of the world leading company in the fields of electric automation,providing secure,reliable,efficient,economic and environmental friendly energy to improve production efficiency to customer.Focus on strategic development in major verticals,such as,oil and gas,mobility,utility,mining,building,food & beverage,etc.In past 3 decades,SC have been devoted in helping industrial modernization for China.Although in recent years,as the order intake from key verticals such as utility,mining and infrastructure continually drops down due to Chinese macro-economy growth slowing and economy structure transforming;food and beverage vertical has kept growing and facing new opportunities.As the main purpose of this paper,SC need to generate strategy to explore business and ensure the steady and sustainable growth of the whole company.The paper applies following analysis methodologies,a.PEST methodology for outer macro environment of SC company;b.study on the electrical automation demand trend and application characteristics of food and beverage vertical;c.Five Forces Model to introduce the competition dynamics of SC.As an industry giant country,food and beverage industry shows great requirement and potential for electrical automation products;On the other hand,the new technical requirement such as food safety,production efficiency,energy saving etc.also accelerate electrical automation development.However,as the economy growth slows down,together with shrinking investment,the competition becomes more and more severe,surely business owner is granted with more bargain power than ever.The paper also introduces and makes analysis on SC's resources and capability: as one of the largest electrical automation company in China,SC has great advantages in finance,human resources,technique,market resources etc.;besides,in food and beverage industry,SC has the strength in R&D and sales& marketing.However,the company has weakness in commercial policy and industry influence power.According to SWOT methodology,considering external and internal environment,the paper suggest SC need to apply differentiation competition strategy.Differentiate in four aspects: technique,sales and marketing,promotion and target customer selection.And suggest to set up short-term goal as sales revenue reach 200 million,with market share 20% by 2018;mid-term: customer coverage expand from large customer to medium customer,sales revenue reach 300 million,becoming the largest electrical automation supplier in food and beverage vertical.Long-term: customer covers from large,medium and small scale,focusing on customers' demand on energy saving,production,efficiency and environmental protection,becoming the largest comprehensive product and service supplier in food and beverage vertical.At the last part of this paper,to ensure the execution of differentiation competition strategy and achieve the strategic goal,the paper also raised guarantee measures for technical resource,market promotion,financial support and human resources.