Research On K Company's Localization Strategy

According to the <China human development report in 2013>,China aims to achieve an urbanization rate of 70% by 2030.It is a very important way to archive the goal of urbanization rate by developing Rail transportation industry in China.In the beginning of the 21 st century,rail transportation industry in China has been leapfrog development stage.The rail transportation industry has been developed rapidly within the great supporting by the government.Such a huge market cake also drives the world rail transit equipment manufacturers to focus their business on the Chinese rail transit market.K,a German brand with a history of more than 110 years,has invested in China in 2004 and established K Company,the sole proprietorship company for manufacturing locomotive,high-speed rail and Metro brake systems,as the leading enterprise of vehicle brake products in the world rail transit industry.From 2005 to 2017,K Company's market share is the dominant position in the domestic rail transit vehicle braking industry.Among them,the market share is around 90% in the domestic Harmony high-speed railway braking system market,and 70% in the domestic Harmony locomotive braking system market.However,due to the influence of policy orientation and other factors,the environment of rail transit market in China has changed quietly in recent years.The state has given vigorous support to local enterprises,advocated local brands and demanded independent intellectual property rights.In this context,K company's business has been greatly impacted.In 2017,China Railway Corporation launched the new platform high-speed train,Fuxing EMU.K company has lost this platform completely because of the influence of foreign investment background,so it has dropped from 90% to 0% in a short year that the market share of K company in the domestic high-speed railway market,and according to the current trend,the business of locomotive brake system will continue to decline in the next few years.So after K Company gain the dominant position in the market after entering China,when the external market environment changes dramatically,how should K company face it? This paper sums up the analysis of localization strategy on the premise of fully analyzing the situation of China's rail transit market and the comprehensive analysis of K company itself.Finally,under the guidance of localization strategy,it gives the corresponding strategies for K company to continue to take root in China's rail transit equipment market.Among them,the first chapter introduces the research background,research motivation,research methods and analysis content in brief;the second chapter elaborates and combs the localization strategy and elaborates Porter's Five Forces Model and SWOT analysis tools in detail;the third chapter analyses China's microscopical under the guidance of PEST analysis model and Porter's Five Forces Model theory.Market and the industry environment of domestic rail transit equipment market;Chapter IV puts forward the company's problems according to the differences between K company and its competitors;Chapter V makes a detailed analysis of K company's own advantages and disadvantages with the help of SWOT analysis method;and on the basis of analyzing K company's own advantages and disadvantages,formulates a market environment based on the theory of localization strategy.The sixth chapter introduces the measures to ensure the implementation of the above-mentioned corporate strategy.