Research On Competitive Strategy Of Company J's CNC Machine Business

Machine tool industry is a fundamental and an industry of strategic importance related to national economy, people's life and national defense. It is also the fundamental production method for tooling up industries. The development of machinery industry is closely related to fixed assets investment and is influenced greatly by fluctuations from its downstream industries and fixed assets investment.Since 2002, combined annual increasing rate of sales income of China metal cutting machine tool is about 25%, combined annual increasing rate of CNC machine tools is about 39%. In 2009 our metal cutting machine tool production got the first place in the world comparing with the third place in 2008. China machine tool consumption has remained in the first place for 8 years successively. However, our technical level is relatively low compared with oversea counterparts. In 2009 our China-made CNC machine tools occupied 60% of CNC machine tool market. Quick development of machine tool industry is attracting more and more enterprises to enter this field.Many of previous leading enterprises have extended production scale through transferring and technology reform and implemented diversification strategy with their powerful manufacturing capacities and entered into relative or similar fields; this 'big cake'also caught sight of private capital owners and they swiftly occupied the market with their favorable capital advantages and globalized resources; oversea leading enterprises, based on their advantages in technology, accuracy and reliability, with the help of domestic sales network and cooperative partners, grasped the demands of high-end customers. As the competition in machine tool industry keeps heating up and gradual maturity of the market, the field enters the era of homogenized competition.In this thesis, the outside competition environment of Company J Machine Tool is analyzed using method of theory vs. practice with the background of overall machine tool development and also using macro environmental analysis theory, Porter's five competitive forces analysis, outside factors such as company J Machine Tool competitive environment, competitors. As to inner resource conditions, the thesis analyzes company J Machine Tool core competitive force via company J Machine Tool resource advantages and disadvantages summery and CNC machine tool business capability analysis; the thesis also uses SWOT tool in enterprise strategy management to analyze the advantages and disadvantages of Company J Machine Tool's competitiveness and challenges on which bases the competitive strategy is selected and implemented; on the basis of analyzing resources of itself and its competitors, new measures of competitive strategy is put forward as per theoretical evidence presented in this thesis. Chapter six focuses on enterprise reorganization, business process reengineering and enterprise culture establishment in orientation of market. Supporting systems employed for strategy selection are also described.