| China is the world’s largest manufacturing country of small domestic appliances,and large numbers of manufacturers gathered to form a complete small domestic appliances industry chain.In recent years,the demand for small domestic appliances in domestic and international markets is growing,the diversification of demand and marketing channels have led to the emergence of large numbers of new small domestic appliances manufacturers in the industry.PRETTYCARE Electrical Appliances Co.,Ltd is one of these small domestic appliances’ manufacturers,whose business is mainly based on OEM products exportation.The product line has been enriched up by five years development,however,the external environment is becoming more and more intricate and complex with the gradually escalation of trade friction and COVID-19 pandemic.And competitive positioning of PRETTYCARE’s products is always not clear for a long time,resulting in many dilemmas and lacking product competitiveness.How to improve the competitiveness of small domestic appliances in the changing market environment has become a question for the management to think about.In this thesis,we take the small domestic appliances products of PRETTYCARE as the object of research.Based on the strategy management theories and references on the external environment and internal resources and capabilities of the company,we develop a competitive strategy for the company after analyze and research the current situation of the industry and the company’s products,and give the corresponding implementation plan and guarantee measures.Firstly,the current situation of the enterprise and products are described,and the products problems and reasons are analyzed.Then the current products competitive strategy of the enterprise is reviewed.It is proposed that the root cause of the current products dilemma is lacking of holistic products planning.Especially,there’re no clear goal,no clear products positioning,and no clear development path.The enterprise has the necessity to develop a competitive strategy.Secondly,in the strategic environment analysis stage,using the PEST model,Porter’s "Five Forces" model and Competitive Profile Matrix to analyze the company’s macro external environment,small domestic appliances industry environment and competitors respectively.Then,we used the External Factor Evaluation matrix to assess the overall external environment of the company.The analysis concluded that the company had limited effective responses to the opportunities and threats in the external environment,and do not make good use of opportunities and threats;then the company’s internal resources,capabilities and value chain were analyzed,and the internal environment was evaluated by the Internal Factor Evaluation matrix.The analysis shows that the company has the capacity to make good use of its internal strengths and weaknesses to build on its strengths and avoid its weaknesses.The company has the possibility to use internal resources and capabilities to build competitive advantages.Then a SWOT analysis of the external and internal environment is conducted,from which the SO strategy is selected as the strategic direction of the company.Thirdly,in the strategy selection stage,the strategic options from the SWOT analysis are sorted out in the three directions of "overall cost leadership strategy","differentiation strategy" and "focus strategy”,and analyzed with a Quantitative Strategic Planning Matrix.Combined with the company and the small domestic appliances industry’s specific situation,the Focused Differentiation Strategy for emerging markets through differentiated products were proposed.Then,the InternalExternal matrix analysis was conducted for different product categories of the company.A competitive strategy suitable for each product category was derived after comprehensive analysis.In particular,the vacuum cleaner product implemented the market development strategy,while the other small home appliances used the product development strategy.Finally,in the implementation stage,the specific implementation plans are proposed,according to the market development strategy for vacuum cleaners and product development strategy for other small domestic appliances.They’re:strengthening market development focusing on vacuum cleaner products,improving the products lines mainly for air purifiers and small kitchen appliances,optimizing the production process & flow,and optimizing supplier resources.To ensure the implementation effect,guarantee measures are put forward from the aspects of organization,technology,finance,information systems & corporate culture. |
