Research On Differentiation Strategy Of R Aluminum Alloy Parts Company

Industrial precision aluminum alloy parts manufacturing belongs to the field of precision light metal parts manufacturing.It is an important industry in the national economy.China stated that it was necessary to develop the precision aluminum alloy parts industry radically and promote industrial technology advancement according to the 13th Five-Year Plan.However,by the same time of industrial development,the aluminum alloy parts industry were tightly constrained by the environment and nature resources.It was affected by some factors such as cyclical adjustment of upstream and downstream industries,China-US Trade Wars,overcapacity caused by disorderly competition in various regions.The homogenization competition of aluminum alloy parts manufacturing has become more and more fierce,which caused the imbalanced development of aluminum alloy parts industry.This article lists R Aluminum Alloy Parts Company as a case study.PEST analysis shows that current national policies and economic development trends are incentive for the development of the aluminum alloy component industry,while the continuous update technology of the industry has to match the requirements of the downstream application market.There will be product iterations of the downstream application industry,and the low-end processing enterprises will face market elimination via Porter’s Five Force Model analyzes.The R Company needs to focus on the high value-added customized deep processing precision aluminum alloy parts.Based on the SWOT theory and the internal analysis of R Aluminum Alloy Parts Company,there will be emerging market opportunities in the downstream application industry,as well as technical challenges,supplier certification and strict environmental safety supervision requirements.Although R Company has the advantages of technology,quality management and market frontier,it is also subject to the disadvantages of limited production capacity,weak international sales channels and high operation costs.Through comprehensive analysis,this paper proposes that R Company should adopt the differentiation strategy to gain competitive advantage,and formulate it from four aspects:comprehensive flexible production,independent R&D technology,middle and high-end marketing,and full-process one-stop service.Then implement strategy in three aspects:market expansion,product development and technology innovation.Finally,the paper puts forward the safeguard measures for strategic implementation in four aspects:optimizing the enterprise management system,perfecting the human resources system,integrating the information management system,and reshaping the enterprise safety culture.