Research On The Competitive Strategy Of Z Company

With development of the global economy and the medium-high speed growth of China’s economy in the past 40 years,industrial equipment and large-scale infrastructure have been popularized worldwide.Fasteners,especially high-strength fasteners,as important basic industrial components,have increasingly attracted the attention of both supply and consumption ends in the industrial field.In recent years,the global fastener manufacturers have maintained an annual growth rate of 10%or higher,and the fastener business market prospects are good.Founded in 1994,Company Z is a privately held high-tech manufacturing group facing the global market.Focusing on the R&D and manufacturing of precision parts and high-strength special fasteners in the industrial field,Z Company has been successively rated as "high-tech enterprise","gazelle enterprise" and "specialized and special new enterprise" in recent years.Since its establishment,Z Company has maintained rapid growth.However,the challenges and problems faced by the company are increasingly complex.The escalation of the Sino-US trade war,the sharp increase in taxes imposed by the United States on Chinese goods,the slowdown of the world economy caused by the global epidemic,the sharp rise in international logistics costs,global inflation,the intensification of China’s aging,the tightening of environmental protection requirements,the rise in production costs and other factors have all led to a significant cost increase to Company Z,and low-cost manufacturing no longer has a sustainable competitive advantage;Germany’s JUNGEBLODT,AF,Japan’s Hamax,South Korea’s S&W Company,and China’s FW have made the market competition increasingly fierce and the product homogeneity serious.Company Z is facing the impact of low price competition in the industry,lack of technology research and development and brand maintenance,and vague competitive strategy.The superposition of multiple factors makes the profit space of Z Company increasingly compressed.In this context,how to keep the fastener business of Z Company’s competitive advantage in the industry has become an important issue that the company must face.In this thesis,the external macro environment,industry status and market environment of fastener business of Z Company are fully analyzed by using tools such as PESI and Five Forces model;The internal environment of fastener business of Z Company is deeply analyzed from the perspectives of resources,capabilities and operation status;On this basis,the external opportunities and threats,as well as internal advantages and disadvantages faced by the fastener business of Z Company are identified.This thesis uses the EFE matrix to analyze key external factors,quantify opportunities and threats,and a weighted score of 2.96 indicates that opportunities are greater than threats;Using the IFE matrix to analyze and quantify key internal factors,it was found that the disadvantages of internal conditions outweighed the advantages(weighted score of 2.27);Use SWOT matrix for combination analysis and formulation of alternative strategies;QSPM was used to optimize the strategy options,and it was finally determined that Z Company’s fastener business should adopt the "differentiated competitive strategy".In order to ensure the implementation of the "differentiated competition strategy",four implementation measures are proposed:product differentiation,service and personnel differentiation,channel differentiation and brand differentiation;It puts forward five strategic implementation guarantee measures including human resources,R&D,production and quality,marketing and brand strategy;Dynamic risk control measures are proposed;The implementation of the above measures will help Z Company maintain its continuous competitive advantage in the fastener business.