Study On Competitive Strategy For Vitesco Automative Co.,Ltd Sensor Product

In the global pattern of economic integration,China’s influence is increasing.With the development of China’s economy and the change of people’s consumption consciousness,vehicles have become popular consumer goods.Automotive sensors bring more comfort,security and experience to car driving,so in the rising market demand,the popularity of automotive sensor products is higher and higher.After years of development,the technology level of sensors has been close to homogeneity,and auto parts suppliers have begun to fight a price war.As a leading auto parts supplier,Vitesco has gradually lost its advantage in this competition.In this paper,based on the above background,first of all,combined with the current situation of Vitesco Automative Co.,Ltd’s sensor business,based on the competition theory,the environmental background and competition situation faced by the enterprise are systematically analyzed,so as to seek a reasonable solution for Vitesco Automative Co.,Ltd’s sensor business competition strategy,and then establish the competitive advantage of Vitesco Automative Co.,Ltd’s sensor business,so as to effectively protect the interests of the enterprise.Secondly,in the process of the research,we found some problems existing in the company’s business,such as the lack of innovation in products,long cycle of sensor research and development,high product price,lack of flexibility in competition and so on.We concluded that there are great challenges in the future competitive market of Vitesco Automative Co.,Ltd.In view of this conclusion,this paper further analyzes the root causes of Vitesco Automative Co.,Ltd’s future difficulties,which are mainly affected by the lack of human resources,the disparity between domestic and foreign R&D capabilities,the low management and control of suppliers,the bloated organization and other factors.Thirdly,the paper analyzes the macro development environment of auto parts industry through PEST model,and then analyzes the industry meso environment faced by the company by Porter’s five forces model,and systematically analyzes the current situation of the company’s sensor business unit by SWOT model.Through the results of the above analysis,the sensor business unit competitive strategy of Vitesco Automative Co.,Ltd is formulated.In the short term,we should adopt SO strategy,that is,we should make use of resource advantages and R&D capabilities to actively expand the sensor business market.And implement WO strategy in the long term,enhance the ability of local R&D team,and enhance the bargaining power with customers and suppliers,so as to strengthen the competitive advantage of Vitesco Automative Co.,Ltd.Finally,from the three dimensions of technology,innovation and market share,the sensor competitive strategy planning objectives are formulated,and the applicability of several competitive strategies to Vitesco is analyzed.It is found that the low-cost strategy is the most suitable future competitive strategy for Vitesco.For this reason,this paper puts forward specific low-cost programs,such as large-scale production,development of low-cost products,replacement of low cost raw material and optimization of competition channels.In order to ensure the smooth implementation of the strategic planning,this paper formulates the following five guarantee measures,namely,organizational guarantee,institutional strengthening,financial support,technical guarantee and information guarantee,so as to ensure the effective implementation of Vitesco Automative Co.,Ltd’s competitive strategy and win more customers in the market.To sum up,Vitesco Automative Co.,Ltd should choose the low-cost strategy to deal with the present competition form,enhance the R&D ability,continuously strengthen the innovation of products,and optimize the product competition channels,so as to ensure the continuous improvement of Vitesco Automative Co.,Ltd market competitiveness.