Research On The Competitive Strategy Of The Off-highway Mining Vehicle Business Of Northern Co., Ltd

Off-highway Mining Dump Truck industry,a segment of construction equipment industry,plays a vital role in China’s infrastructure construction,mining development and the fast development of national economy.Its development is closely associated with the periodic performance of mining industry and the growth of investment on infrastructure.The macro-controls policies implemented in the industries of mining,steel,non-ferrous,cement etc.and the investment growth of fixed assets directly impact on the needs from the downstream customers,and consequently the total demand of mining truck is affected.From the short term the demand on the mining truck continues decline driven by weak macroeconomic recovery and mining industry downturn.Moreover,Wide Body Truck is gradually replacing the small-class mining truck.As a result of these above,the competition in mining truck industry is extremely fierce,and excessive marketing and cut-throat competition arise in the market.From the long term mining industry is still the basic support on the industrial development and its importance cannot be replaced.The countries along Belt and Road Initiative have rich mineral resources,and these underdeveloped countries require developing mining to drive their industrialization process.Therefore there is much potential market demand on the mining truck in these regions.Facing these challenges and opportunities what competitive strategy will be adopted by Inner Mongolia North Hauler Joint Stock Company Limited(NHL),which is the dominant leader in China’s off-highway mining dump truck market,to obtain stronger competition advantages and drive profitable growth?In this paper,NHL’s off-highway mining dump truck business is taken as the research objective.The threats and opportunities which NHL is currently facing,along with its strengths and weaknesses,are indentified by a thorough analysis of strategic environment and strategic resources and capabilities for NHL’ mining truck business,with a proper use of the theories and analysis methods in relation to competitive strategy.And then based on the SWOT analysis the strategies for the mining dump truck business are selected as: the overall development strategy should adopt strength-opportunity growth strategy,and the cost leadership strategy is recommended for its competitive strategy.Lastly,the detailed measures to the strategy focusing on the execution cost drive are given.Lastly,the strategic safeguard measures are suggested from perspective of management,talent cultivation,innovation,marketing and sales,and service,to ensure the strategy is put into place successfully.The results of the paper are expected to provide NHL with some references on its strategy decision making.Moreover,NHL is a typically representative company as a market leader in China’s off-highway mining dump truck industry.The research on its competitive strategy will also bring some reference for other similar enterprises.