Research On The Competitive Strategy Of SMC's Equipment Import Agency Business

According to the National Bureau of Statistics,China's import and export trade volume totaled 24.55 trillion Yuan in 2015,a drop by 7.09%from last year.The total export value was 14.12 trillion Yuan,1.89%lower than last year,while the total import value was 10.43 trillion Yuan,a decrease of 13.31%from that of the previous year.The trade surplus was 3.68 trillion yuan.In 2016,the total value of China's import and export trade was 24.33 trillion Yuan,0.9%lower than the previous year.Among them,exports dropped by 2%to 13.84 trillion Yuan,while imports climbed to 10.49 trillion Yuan,and the trade surplus was 3.35 trillion Yuan,narrowing 9%compared to the circumstance in last year.These data indicates a downside trend of our total trade volume,meaning that the influence of imports and exports on GDP is shrinking,which brings a severe ordeal.Under such circumstances,the challenges faced by foreign trade corporations are very serious.Therefore,this paper takes SMC as an example to study the competition strategy of its equipment import agency business,in order to obtain a certain role in the strategy formulation of import and export companies.This paper mainly studies the SMC import and export company through the following aspects,and then presents the corresponding views of the author and the implementation measures of the strategy and incentive policy.First of all,this paper finds out the theoretical and practical significance of thesis research.This paper mainly adopts strategic management,enterprise strategic management theory and strategic management process theory as the main theoretical basis of this paper.By using PEST and Five-force analysis models to analyze the company,the SWOT analysis matrix is used to analyze the opportunities and threats of its objective external environment,and the advantages and disadvantages of its internal environment,and then the optimal development strategy is formed through constructing a corresponding matrix.Secondly,the status quos of macroeconomic and political factors,economic factors,social factors,technical factors,environmental factors,legal factors and other factors faced by SMC are analyzed;In the meantime,the competition among the existing competitors in the industry environment,the threat of the potential entrants and the substitute products,the bargaining power of the suppliers and customers are also analyzed.Therefore,a preliminary understanding of the problems faced by SMC could be obtained.Based on the objective analysis of its current situation,this paper believes that the biggest problem SMC facing now is the decline in its performance due to these changes in the market environment.Thirdly,this paper finds out that SMC has poor inter-departmental cooperation,and lacks of corresponding incentive policy and financial support,based on the analysis of the internal environment of SMC equipment import,including SMC's internal financial resources,human capital,customer resources,SMC's core management capabilities and marketing capabilities.Moreover,there is a lack of connections and communications between departments,and the depth and breadth of innovation and development are greatly limited.With an increasing number of foreign companies setting up factories in China and the manufacturing level of domestic equipment manufacturing enterprises getting higher,SMC is currently facing a decline in business volume and thus profits,leading to an urgent need to find new development strategies.Finally,this paper recognizes the opportunities and threats of SMC after summarizing the problems currently faced,applying the theories and models mentioned above,and analyzing its external macro-environment and current situation.Based on the research of SMC's existing resources,SWOT is applied to analyze its external opportunities and threats as well as its internal advantages and disadvantages,forming a solid foundation in the strategy adopted by the company in the next step.Using the methods of monographic study and case study provides SMC a reliable reference for its next strategic choice.Therefore,this paper proposes to adjust SMC's equipment import competition strategy,and adopt implementation measures and guarantee incentives to ensure the effectiveness of the competitive strategy adjustment.After determining the company's next strategic objective,SMC should develop its core competitiveness based on its advantages in order to achieve its complete transformation.On the other hand,the company's resources should be utilized to fully cooperate with the realization of the company's strategy.Moreover,the talents,capitals and resources of SMC should service its strategic goals in all aspects.This paper provides a suggestion for realizing the strategy of SMC import agency,and provides a reference for other companies'competitive strategies.