Research On Competitive Strategy Of E Corp.in Chinese Market

40 years since reform and opening up,foreign invested enterprises have made great achievements and contributions for our economic growth,from nothing in the beginning,and became an important part of our national economy.With China’s economy development goes to New Normal,internal and external environment has changed greatly.Although China’s market potential is still very big,the competition is becoming more intensively.Under the new environment,foreign invested enterprises have to not only observe the external environment,but also need to change internal management model and strategy plan so as to create its own core competence.Only by doing in this way,the enterprise can remain its long term competitive strength.In order to keep sustainable growth,enterprises have to make adjustment and selection for its competition strategy with the changes of the outside environment and its own internal resources so as to enable itself to adapt to the competition mechanism in the new era.E corp.is a German family corp.invested manufacturer of components for home appliance.Facing the tremendous changes in the transformation and upgrading of the Chinese market in recent years,it is necessary for E Corp.to readjust its competitive strategy for the Chinese market.This paper takes E Corp.’s competitive strategy as an objective.Firstly it uses the PEST and Five Forces Model to analyze the company’s macro environment and industry competition environment respectively,and at the same time sort out E Corp.’s internal resources and capabilities;based on the research above,then use SWOT and EFE/IEF matrix analyses method to summarize the external opportunities and threats,as well as internal strengths and weaknesses for E corp..Although the external environment and the development of the home appliance industry have undergone major changes over the past few years,the state’s policy for the smart home appliance are positive and potential for future growth is huge,which are beneficial for E corp.’s long-term development in Chinese market.From the perspective of internal environment,there are certain advantages for E corp.in terms of technical capacity,production capacity and brand building,but at the same time also some problems of dis-adaptability in China.Finally this paper formulates a suitable,effective and goal-oriented Chinese market competition strategy,implementation and guarantee methods so as to improve the core competence of E corp.in Chinese market.Because E corp.has some advantages in the market segment of smart refrigerator ice maker,the conclusion is that it should adopt a differentiated target concentration strategy.This paper hopes that the research on E Corp.’s China market competition strategy can provide some references for similar foreign-funded enterprises when they execute the business development in the Chinese market.