H Development Strategy

With China's entering into the heavy industry stage, machine manufacturing grows quickly and the demands of castings increase with years. As China has comparative advantages, the global production of castings is transferring from developed countries to developing countries and China has taken the first place in the production of castings. Because there are many foundries in China, however, they compete fiercely with each other. H company is a private middle foundry. For H company, how to deal with external opportunities and threats and how to go further is an important strategic problem.The thesis analysed external and internal circumstances of H company and summed up the external opportunities and threats, internal strengths and weaknesses. And then the strategic objectives were formulated. With the use of SWOT matrix, grand strategy matrix and quantitative strategic planning matrix to analyse alternative strategies for H company, corporate-level strategies were worked out. It was clearly pointed out that market development strategy, market penetration strategy, product development strategy and horizontal integration strategy should be used to strengthen the foundry business in the near future and the forward integration strategy should be used to develop precision-machined business and enhance competitive advantage and achieve strategic objectives in the far future. After comparing Porter's generic strategies, focus cost leadership strategy should be taken. To ensure the success of corporate-level strategies and competitive strategy, related management measures were formulated.It is hoped that the research can promote the development of H company and also be used for reference for middle or small foundries.