S Company China Market Competitive Strategy

With the economy development China participates more and more in all kinds of international and regional affairs or shows. People identification products have drawn more and more attention and the recognition in China market. To win the market share is the success assurance of identification business while identification products market keeps growing. This thesis clarifies that cost focus strategy shall be applied and the approaches to be realized after analysis on S company's outside circumstance and inside resources. This thesis is composed of four chapters:Chapter 1 briefs the company background.Chapter 2 analyzes the motivation of entering China market. Group global acquisition strategy extends the identification scope from articles to people, and completes the identification product line. S company is keen on developing new market and improving the profitability of identification products as the margin of standard products is decreasing for the growing competition in oversea market. The development of China market provides opportunities.Chapter 3 analyzes the competitive circumstance in two sections. The first section analyzes outside circumstance by applying PEST and industry lifecycle theory. S company stays in a continuously development circumstance whatever in political, economic, social and technical perspective. Industrial analysis summarizes the competition characters of growing stage for S company. The second section analyzes inside resources by applying value chain, core competition and SWOT theories. The value chain analysis clarifies that research and development, procurement and production is the key function of S company. The core competitive analysis says the automatic mess production supported by the strong R&D team is the core competition of S company. Then the SWOT analysis summarizes how to utilize outside opportunities and deal with outside threats.Chapter 4 clarifies the selection of competitive strategy, approaches of realize cost focus strategy and the risk control of realization. S company is unable to be overall cost leader over the industry, nor be able to differentiate for all product line. The best choice for S company is to apply cost focus strategy and centralize all resource for standard product market. Effectively control on the cost elements is the key to realize cost focus strategy. Meanwhile the risk control should be considered.