The Developmental Strategy Study On A Company

The automobile industry is developing in leaps and bounds in the contemporary age, an era with innovation abound. This offers ample opportunities for the growth of automobile service market, and poses multiple challenges at the same time. Corporate decision making in the industry is becoming more and more demanding. The importance of strategic management is increasingly gaining focus in automobile service companies. Automobile maintenance service is the major business component of A Company. There exist a number of issues both in the internal management and the external business activities. A study on strategic management will benefit the company with a more clearly defined direction for its further growth.Employing PEST and Porter's five strengths modeling analysis, this work concludes that there is strong demand in the automobile maintenance market; the automobile maintenance industry is in its growing phase with opportunities abound. Both the entry and exit barriers for the industry are low, however, it is demanding endeavor to develop into a high quality brand name company and it often requires a long fostering period. Currently, the industry is in a state of negligible concentration and high volatility, characterized by intensive and yet chaotic low level competition. The industry is evolving into a stage of development, innovation and integration. With the emergence of orderly development, the future competition will be primarily of the competition via brand. On the other hand, the competition on airport special-purpose vehicle maintenance market is apparently on a lower level, and the survival and growth of the existing companies is relatively stable.This study identifies the following three core competitive advantages for A company through analysis on its internal resources, capability and value chain:1. The experience and capabilities with the maintenance of airport special-purpose vehicles; 2. The capability of maintenance regarding Volkswagen automobiles; 3. The low-cost/high added-value competition, including deep-level maintenance that requires advance technologies and infrastructure.In summary, this study proposes that the company focus on three target market segments as its primary business: the maintenance of the Volkswagen automobiles; the maintenance of airport special-purpose vehicles; and the comprehensivemaintenance from institutional clients. With regard to competition strategies, this study suggests a low-cost strategy for both the Volkswagen automobiles and the institutional clients, and a differentiation strategy for airport special-purpose vehicles. This study also provides the tactics and measures to ensure the effective implementation of the strategy.