Yunnan Switch Factory Development Strategy

Yunnan Switchgear Factory is a large enterprise in southwest area of China that manufactures power equipment. Its total asset reaches more than 250 million yuan. With the continuous and rapid growth of Chinese economy and power equipment industry, the market witnessed an increasing demand for power equipment product. In order to adapt itself to need of market, Yunnan Switchgear Factory has been continuously enlarging its production capability and increasing its category of product. Over decades of development, the factory has grown from an original factory manufacturing 0.4—10kV switchgear to an enterprise group with the production capability of decades kinds of products such as 0.4～220kV complete set of switchgear, circuit breaker, disconnector, etc. Under the influence of these two factors, domestic factories of the same industry began to pay close attention to Chinese market and development of Yunnnan Switchgear Factory. They are not satisfied with the existing market share, but continue to increase market share and strive for greater profit. Several international companies with industry-leading technology also began their plans to establish wholly-owned or joint-venture production plants in China and attempted to occupy Chinese market by using their leading technology and ensure their monopoly advantage and profits. At the same time, domestic private enterprises also try to join in the competition in the power equipment manufacturing industry. The future competition in Chinese power equipment manufacturing market will be very fierce.Under such a competitive situation, what kinds of tactics and strategies should be worked out by Yunnan Switchgear Factory to seek development of the enterprise and greet competition and challenge? This is a major strategic issue must be considered deeply by senior managers of Yunnan Switch Factory.In this article, strategic development of Yunnan Switchgear Factory is used as a study example. After introducing development of domestic and foreign power equipment manufacturing industry, and by adopting strategic analysis tools such as five kinds of competitive model analysis and SWOT analysis, the author developed a detailed analysis on the external environment, internal factors and competition-cooperation situation of Yunnan Switchgear Factory and put forward that Yunnan Switchgear should implement an expansive competition strategy and consolidate and strengthen its leading advantage in domestic market through rapid enlarging and strengthening. The author also gives a detailed description on working out, evaluation and control of strategic objectives of Yunnan Switchgear Factory. After studying, the author believes that as long as Yunnan Switch Factory' s development strategy conforms to actual conditions of the enterprise and has an accurate orientation and strategic measures can be implemented, Yunnan switchgear Factory' s overall development strategic objectives can be fully realized.