Xuguang Company Strategic Analysis And Choice

As an employee of the researched object, the Xuguang Company, the writer concentrates on analyzing and finding strategies for the company on the base of correlated theories, industry information and intuition for the future development trend.Xuguang, a former military factory, depending on its traditional product, ceramic-metal transmitting tube which has a high entering industry barrier and monopolistic profits, has never been affected seriously by the economic system reform until the end of 1990s. Never than less, it also enters into vacuum interrupter industry by product line extension. Along with the development of semiconductor technology, setting up of wired TV net and satellite-TV system, the demand of transmitting tube has come down. On the other hand, some factors, such as, technology development, lower industry barrier, more competitors and potential competitors, etc., have caused the total supply over demand in the vacuum interrupter market. Price competition is fiercer and gross profit rate is lower. The main two products have already entered the mature period of product life cycle. More worse, there is no new profit source produced in large scale. There is no chance to hesitate to plan an endurable strategy.This thesis has six chapters, starting with the significance and main theories of strategy. Brief introductions of the Xuguang Company, including background, present state and problems needed to be solved, are in the second chapter. In the third chapter, the critical related factors in external environment have been analyzed in macroscopic, industry and competitive levels. The internal resources and competency are explored in the forth chapter. In the fifth chapter, the strategy analyzing methods, such as SWOT, SPACE, BCG, etc. are used to match externalopportunities and threats together with internal strengths and weaknesses. So opportunities can be utilized to the full and threats be avoided. In order to realize the strategy objectives totally, some management problems in excursion are discussed in the last part.The main results of this thesis can be described as follows. In transmitting tube industry, the company should improve technology, which is core competency. So differentiation strategy is most suitable. In vacuum interrupter industry, the core competency is management, which means excellent quality and resource controlling. At the same time, based on the mastered electric-vacuum technology, product development strategy is the best way to get more and endurable profits.The highlight of this thesis is that the writer is familiar with the industry. And in the principle of theories integrating practice, the information is dug from a large amount of data and materials, not only having the strategies been elaborately analyzed, but also some excursion problems that have been discussed.