Research On The Development Strategy Of The S Division Of Company A In China

During the recent ten years,with the increase of national income,the living conditions improve continually.Particularly,with accelerating urbanization and transference of consumer’s concept,the demands of vehicle rapidly increase.By the end of 2014,the quantities of sales and output are more than 23 million automobiles which exceeded American’s and become the champion in the world.Complying with the rapid progress of vehicle industry,the main automobile manufacturers are increasing investment and enlarging capacity to extend vehicle market of China.Majority of China automobile companies are joint ventures by national and oversea capitals,characterized by core technology controlled by oversea partners.As the automobile market maturing,the shortage of utilization of cheaper labor and resource becomes more and more obvious.The competition situation of automobile manufacturer with as low as possible cost is turning white-hot,and business model would be changed as never before.Likewise,the industry of vehicle component,the essential of supplier chain of automobile industry,also created the glorious miracle with the progress of automobile in the past years.Base on the automobile manufacturers’ demands of low cost and decreasing price,component makers will be restrained by the situation that oversea companies control technology,material and labor cost are increasing and the regulation of resource control and environmental protection are more and more strict.Considering internal and external environment continuous deterioration,to build and choose the suited development strategies,to speed up progress and to improve quality of enterprise operation will be the keys to help company to catch the following development opportunity and win a long-term and sustainable victory in the increasing fierce market in the future.’The thesis cites the classical strategy theory and predecessor’s research achievement and study the case of the S Business Unit of the A company.In the study process,I apply PEST Model and Porter’s Five Forces Model to analyze macroscopic environments and industry environments deeply.I define the opportunity and threat which comes from external environments.Meanwhile,I analyze internal environments,such as the value chain and core competitiveness to define the strength and weakness of the S Business Unit.Base on analysis of internal and external environments and the internal location of S Business Unit,I use SWOT Matrix to align and choose correct strategy for the S Business Unit.Finally,I provide solutions to implement the developments strategies for the S Business Unit by 6 dimensions.The solutions,support the strategy implements strongly,lie in organization change,policy of incentive,optimization of internal and external resource,integration of customer resource,full dimension control of forecast management and definition of new product development target.This thesis based on my systematic studies defines the feasible frame of strategy analysis,strategic positioning and strategy implement for Business Unit.Meanwhile,it indicates development directions for S Business Unit and support strategy implementation continually.