Competitive Strategy Research Of China's Solar Water Heater SME

China will face serious energy problems in the next 20 years. As China's conventional energy sources shortages and the problems of environmental pollution, more and more people pay attention to renewable energy technology, such as clean solar energy. China has become the world's largest solar water heater production and marketing, and its production capacity and application of the scale are in first place in the world。Despite China's solar water heater industry has achieved great development, market is unprecedented prosperity, the Government launched the different incentives, but for the SME in the development stage,the number is large ,strength and competitiveness is weak. How to develop and implement an appropriate competitive strategy to become the subject of SME.So solar water heaters SME is the research object in this article. Using the literature method, a comparative study of research and research methods such as case law. The main use of SWOT analysis, the five competitive forces model, such as a research tool to study.This article analysis the external environment ,such as development history. Competitors and market compacity. This article also analysis the internal environment ,such as R&D and sales network. Through the five forces model analysis of SME, solar power compete with each other the degree of bargaining power of buyers, threat of substitutes, the bargaining power of suppliers, as well as the potential threat. Through the SWOT analysis we analysises strengths, weaknesses, opportunities and threats . Through the above analysis, we have come to competitive strategy choice: Based on the difference of cost leadership strategy. Then we implemente the strategic choice on from the marketing strategy and capital strategy, brand strategy and internationalization strategy , and finally we provide the necessary protection from the talent, culture, management, policy and other aspects .This article can provide the reference value, Hoping that it is helpful for the majority of the troubled solar water heaters SME, in particular to the operators.