Research On Business Strategy Of M Company China Automotive Connector Business

M company is the worldwide leading company of connectivity systems in the electronics industry.Since its entry into the Chinese market in 1982,M company has been expanding its business in the automotive,communications,consumer,medical,industrial and other industries.In view of the slowdown in the current passenger car market in China,the explosive growth of new energy vehicles,and the profound changes driven by green energy,lightweight and intelligent network that affect the technological development trend of the auto parts industry,in addition,the rapid growth of China domestic automotive connector brands has brought great opportunities and challenges to foreign car connector manufacturers who have been committed to the fuel vehicles for a long time.This paper takes China Automotive Connector Division of M Company as the research object,uses PEST model and Porter five force model to analyze the external environment of the business department,then analyzes the internal environment of the business department,finally,analyzes the opportunities and threat of the external environment and division own strengths,weaknesses,then analyzes the four combinations of strategic actions by using SWOT matrix that can be carried out under the strategy.The analysis shows that the development trend of China's passenger car market is new energy vehicles and intelligent internet-networking vehicles,there is no fierce price competition in the automotive connector industry,and the profitability of the automobile connector industry is still fine.Using its own R & D platform and relying on the company's investment,the division has ability to build wider product lines through development,strategic M & A and strategic cooperation to increase investment in the key markets.According to the results of SWOT analysis,combined with the division`s vision and strategic objectives of the business department,the positioning of the target market and customers,to formulate the business strategy of China Automotive Connector Division of M Company: taking American automotive companies and China's leading domestic brand automakers and their tier one suppliers as the core customers,and aiming at intelligent driving cars and new energy vehicles as the target market,adopt the strategy of high difference,realize the continuous growth of sales.According to this strategic choice,to implement the difference leading strategy,we design the value creation activities from three aspects: market and customer research differentiation,product innovation and diversification,and tier one quality management system.In order to successfully implement the strategic transformation,the implementation of the strategy is divided into three stages,and the existing functional system is adjusted from the aspects of optimizing the organizational structure,playing the marketing function,improving the human resources function and promoting the after-sales service function in combination with the current resources and form of the business unit.The purpose of this paper is to provide some theoretical analysis and reference for M Company China Auto-connector Division and other foreign-funded connector manufacturers in thinking how to deal with the opportunities and challenges of China's passenger car market changes.