Study Of Competitive Strategy Of M Company

In the 1970 s,China and the United States signed a bilateral trade agreement.Since then,the scale of trade between the two countries has become larger and larger,and the frequency of trade has become higher and higher.trade exchanges between China and the United States have developed rapidly,and coupled with China’s vigorous development of opening up to the outside world,many manufacturing enterprises have joined the export trade,and the market share of Chinese manufacturing in the United States has become bigger and bigger.Because of this,in 2018,the United States took the opportunity to suppress China’s high-tech technology under the pretext of trade deficit and gradually increased tariffs on Chinese imports to the United States.Since 90% of M company’s business is exported to the U.S.,the company’s business has been greatly hit by the trade war,and its turnover has suddenly dropped from 600 million RMB to 300 million RMB.M company has to get through the difficulties by laying off employees and reducing the size of the company.Facing the current severe crisis,this paper hopes to explore the external environment of electric heater and the internal environment of M Company by applying the strategic management theory to formulate an effective and sustainable competition strategy to help M Company jump out of the dilemma and develop a new path.Through literature and theoretical research,model analysis,interviews,and case studies,the paper analyzes the current situation of M Company and its main problems.Porter’s five forces model and SWOT tools are used to identify the competitive advantage solutions that are suitable for the sustainable development of M Company.Based on the review of the theories related to competitive strategy,this paper analyzes the current situation of M Company in the electric heater industry and finds that it has problems such as single customer group,lack of technical resources,and competitive advantages that can be easily copied,etc.The paper proposes the main improvement plan and its implementation plan to focus on the deep plowing of the electric fireplace market segment,to develop more customer groups,to improve the company’s internal related system,and to optimize the production and operation costs.According to the analysis of the paper,to improve M company’s competitive advantage,it is necessary to adopt a low-cost concentration strategy,use its own technology and production experience in the electric fireplace market segment for many years,increase business revenue by finding new technical support and cost reduction solutions,and by enriching the customer base.