| Automobile sales in China entered a negative growth since 2017.A series of reasons such as overcapacity,new Four modernizations,Covid 19,chip shortage and energy crisis have brought unprecedented challenges and impacts to the whole car industry.Facing the unprecedented changes in this century,How to survive and develop in the highly competitive market is a problem faced by every auto parts company.Being one of them,Changchun Like company is facing more severe challenges and pressures.This paper,based on Changchun like company,focuses on how the unprofitable company continues to develop by effective development strategy.This paper also hopes to provide a reference for similar enterprises.Like company is a Taiwanese investment enterprise,which mainly produces car body structural and safety parts.In 2014,it was founded in Changchun and then Kunshan,Foshan branches set up in 2018,2019 respectively.Like company specializes in lightweight hot-forming solution.The four shareholders are all listed enterprises in Taiwan.The vision of the company is in line with lightweight direction encouraged by the automotive industry,and the company’s resources are far better than its competitors.However,Like company,a good starter,not only failed to achieve the expected benefits,but making a loss year after year from establishment.At the end of 2020,The company’s liabilities reached 360 million RMB and the asset liability ratio was 101%,the company could not even survive.Under this situation,the four shareholders also lost confidence in the development of the company.Like urgently needs to find the reasons and determine how to develop.Firstly,this paper introduces Like company present status and its problems,summarizes the main problems as the loss caused by poor management and the profit reduction caused by market factors.After analysis the paper gives the reasons for the problems,which are wrong strategic positioning and insufficient competitiveness;Secondly,the paper uses PEST analysis and Porter’s five forces model to analyze the macro environment and Auto environment which Like is in.From the analysis of macro environment and Auto industry environment,we can know on the one hand,the products produced by Like company belong to country supported industry and comply with the national policies of energy conservation,emission reduction and environmental protection,On the other hand,the competitive environment in the auto parts industry is becoming more and more fierce,and upstream steel suppliers and ends customers are in a strong bargaining position;In addition,the paper also analyzes the company’s resources and its internal abilities;Thirdly,SWOT analysis is applied to analyze the internal strengths and weaknesses and external opportunities and threats of the company,and then do the strategic matching from different elements,the possible development strategies-strengths and opportunities,strengths and threats,weaknesses and opportunities,and weaknesses and threats are obtained,and their feasibility is analyzed one by one.Considering the serious cash flow difficulties faced by Like company,and if this disadvantage is not adjusted as soon as possible,the company has no opportunity to implement other optimization measures,therefore,the reversal strategy from disadvantage opportunity combination is of biggest possibility;Finally,with the IE Matrix,the reverse strategy is defined,to follow up,the implementation scheme is shareholder capital increase and lean production,and guarantee schemes are provided from the four dimensions of organization,human resources,technology and finance. |
