The Research On Competitive Strategy Of XS Company

The maternal and infant industry has been considered as an eternal life industry for human survival and development,and a sunrise industry in the 21 st century.In recent 10 years,our maternal and infant market has entered into the concentrated outbreak period.Reasons could be listed as follows: steady improvement in people’s income;complete liberalization of second child policy;the strengthened and broadly accepted concept of better pre-natal and post-natal care together with other contributing factors.Mother and baby business research institute data indicate that the market size of maternal and infant industry in our country reached RMB 1trillion in 2010,2 trillion in 2016,and 3.6 trillion by the end of 2019,year on year growth rate increased to 16.13%.With the growing maturity of China’s maternal and infant consumption market,it is predicted that the size of China’s maternal and infant products market will break the barrier of 5 trillion in 2023,the future development has broad prospects.XS Baby Products Co.,LTD,founded in 2014,is a small and medium-sized baby stroller manufacturer in Zhongshan.During the start-up phase,the order types of the company are mainly OEM and ODM.In 2017,XS launched its own brand,and soon developed into a professional manufacturer integrating R&D,production and marketing of baby stroller series.Facing the existing industry giants and emerging new competitors,the company is encountered with the following development difficulties: due to the serious homogenization competition,the order profit level is declining year by year and the company’s own brand recognition is low.How to relieve the pressure of survival and development of the company through strategic transformation is the focus of this paper.Based on the current status of XS Company,this paper will comprehensively use the relevant theories of enterprise strategic management and analysis tools to formulate an appropriate competitive strategy for the company to reverse the current development dilemma.Firstly,the external environment of the company is analyzed by PEST and Five Forces Model to sort out the opportunities and threats.Secondly,analyze the internal resources and capabilities of the company to summarize company’s advantages and disadvantages,and then use the SWOT analysis model to make a strategic choice.Finally,determine the specific strategic objectives,strategic content,action plan and safeguard measures.Through the analysis and research,it is clear that XS Company should adopt the WO strategy,combining with Porter’s general positioning strategy theory,we arrive at the conclusion that XS should implement a differentiation strategy,which is to increase the investment in R&D and marketing,and to meet the differentiated needs of target customers with dynamic innovation of products and services.The specific strategic plan includes seven aspects,such as product style design differentiation,product function differentiation,sales channel differentiation and service differentiation and so on.Creating and maintaining the company’s differentiated competitive advantages in these seven aspects can help XS improve its overall profitability,medium and long-term growth ability and achieve a sustainable and steady development.we also hope this paper could provide some reference for the strategy formation of other domestic manufacturers similar as XS.