Research On Competition Strategy Of Railway Signal Cables Of Xilan Company

As a large state-owned company mainly producing railway signal cables, Xi'an XD Opitical & Electric Cable Co. Ltd (hereinafter referred to as Xilan Company)is under heavy competition. The key to its success is to develop a suitable strategy to improve its core competency while taking its own advantage and opportunities and avoiding disadvantage and risks. Through a thorough research on its competition strategy applying product competition strategy theory, this paper aims to seek a best competition strategy for Xilan Company's products considering opportunities and threats as well as advantages and disadvantages which faces.This paper analyses Xilan Company's current competition strategy theoretically through quantitative assessment applying analytic hierarchy process to put forward the necessity of developing a new competition strategy firstly. It applies PEST Analysis, Porter's Five Forces Model and EFE to analyze and evaluate the market environment of Xilan Company's Raiway Signal Cables to conclude that Xilan Company faces advantages including national industry support, increasing demand, high entry barrier and other social advantages as well as threats including heavy competition and strong client & supplier bargaining power. With KSF theory, key factors to Railway Signal Cable's success in market is concluded, which includes capabilities of brand building, cost control, sales network building, marketing, and research & development. Using core competition theory, IFE as well as identified key success factors and main factors, it analyses the internal environment of Xilan Company's products with the conclusion that it enjoys the advantages in brand building, sales network building, marketing as well as research & development but faces weakness in management innovation and organizational reform capability, human resources management, investing & financing and supplier cooperation. By setting up SWOT analysis model for Xilan Company, a relative best strategy, which is a mixed strategy of market penetration as the main strategy with the support of total cost advantage and product innovation, is determined by investigation of feasible programs of product competition strategy it shall adopt and analysis of its product competition strategy with qualitative evaluation and QPSM methodology. In the end, this paper gives suggestions to efficiently implement its competition strategy. It suggests to the company to improve its core competency by strengthening marketing capability and cost control, and improving research & development capability by technical innovation, quality management capability and human resources management capability, and building better corporate culture.