Kelon Air-conditioning Business Strategy

As an important member of china's home-electronic field, conditioner industry is facing fierce competition, which began at the middle-end term of 1990s. The main troubles. include low profits and excessive number of competators. Established at 1984, Guangdong KELON Electronic Holding Co.Ltd experienced the whole development process of conditioner industry. How to choose suitable strategy to get advantages of competition should come first.By using analytical tools such as SWOT, PEST, five forces framework etc., The paper, focusing on the competitive strategy of KELON , first, confirmed external macro-environment and industrial conditions, predicted development trend of this sector and made clear of opportunities and threats existing in this industry KELON involved in. Second, based on historical data and published documents of the industry, compared Kelon's internal resources and competency with rivals' by way of comparison. Third, using SWOT strategic combination theory, analyzed various combination strategies separately and further made medium and long term plans for KELON. Fourth, combining the result of analysis to SWOT and STP (Segmentation, Targeting, Positioning ), confirmed that the strategy combined low-cost and differentiation is suitable by means of Multi-brands Marketing method. Last given suggestion to implement this strategy including improving human resource construction, perfecting corporation's governance structure and establishing scientific performance management system through balanced scorecard.