Research On Defender Strategy Of Local Smes Todeal With Multinational Giants' Competition

With the rise of the new economy and the accelerating process of economic globalization,cross-border trade and transnational operations have become the basic strategy for the development of major enterprises around the world.As the world's second largest economy and the world's largest developing country,China's foreign business giants are targeting the Chinese market.These multinational companies have obvious advantages,and domestic enterprises,especially small and medium-sized enterprises,use local advantages to deal with foreign companies.Shock is a concern for people.According to Niraj Dawer and Tony Frost,the local SMEs can choose “Dodger”,“Defender”,“Contender” and “Extender” to deal with the strategic model of multinational companies' market competition as a theoretical framework.Company H conducted a case study.In this paper,H company is regarded as a representative of domestic small and medium-sized enterprises.Through the analysis of H company,it provides some reference for the development of competition strategy for SMEs.Through the analysis of the elements of competitive roles,this paper believes that H companies can choose the "defender" competition strategy,and put forward the following specific strategic measures:(1)use existing advantages to stabilize the market(2)personalized customization and service lock “Niche” customers(3)Enhance brand awareness,strengthen sales channel construction,and improve structural barriers.(4)Maintain market acumen and actively innovate to seize opportunities(5)Deepen industry cooperation and mutual benefit.The author believes that this is a competitive measure that H Company's current defender role should focus on and implement.And the conditions of the possible transfer of competitive roles in the future of H company are analyzed and discussed in detail,and the possible future development direction of the enterprise is pointed out.The case study of this paper provides reference for a certain kind of local SMEs who are also facing cross-border competition,in order to provide theoretical help for the survival and development of SMEs in China.