Competitive Advantage Of. The Fs And Nurture Discussion

Chinese appliance chain has transient developing history more than ten years only. The real appliance chain just began from about 6 years before. In the whole development course, the appliance chain companies have all gone through three great stages basically: small electric appliance shop, near ultra large-scale comprehensive chain stores, listing financing to expand the chain scale. Though GOME and Su Ning are outstanding ones in the trade at present, from the feedback analysis on the spot of every city, no one can be found out to occupy the leading position in all cities in appliance chain trade. FS Appliance Company is an enterprise in circulation of large-scale appliance set up according to the demand of standardizing for the modern enterprise system in 1998 and engaged in the management of the whole products of appliances. In the past few years, FS Appliance has developed hypernormally in the idea, system, mechanism and trade innovating and has established the surging trade position. At present, as regards to sales volume, FS Appliance Company ranks the fourth in the Chinese appliance chain trade. Our national appliance chain industry is in high-speed development period at present in which the competition is fierce, the profit rate tends towards melting equally and the profit space is compressed further. Under this background, it has a very strong meaning both in theory and in reality for FS Appliance Company to explore how to construct and keep competition advantage and Which kind of strategic mode it should adopt to obtain the lasting competition advantage. The thesis uses Competition Advantage Theory and Enterprise Monopolize Structure Theory to analyze and appraise FS Appliance Company outside strategic environment. From the analyzing, it has been realized that the company is facing a lot of chances which can strengthen their competitiveness. For example the growth in earnings of urban and rural residents is accelerated, consumer's identification with professional appliances chain channel rises continuously, the country encourages chain enterprises that have the condition uniting the rearrangement of assets, etc. At the same time FS Appliance Company faces the serious threat too, such as the opening –up in an all-round way to foreign retail business, the first class urban rent going up and the cost rising fast to run a shop, Malignant competition of the low price. Among them the most serious threat is that the low price of the same trade competes malignantly. In order to find out the source of the company's competition advantage and ability from inside of the company, Resource Dependence Theory, Business competence and Value Chain theory have been used mainly. It has been realized through analyzing that the FS Appliance Company has important advantages, such as relatively higher quality management group, the influential fund and managing the company in a high standardized degree. Among them, a high-quality management group is the company's most important advantage. Meanwhile the company has inferior position too. For instance the operation cost is higher, serve to innovate indifferently; enterprise's major culture is not strong enough, etc. Among them the biggest inferior position is that the operation cost is higher and serving to innovate indifferently. In order to utilize the chance of external environment condition better, avoid threatening, combining the resource and ability inside the company again, this thesis points out that FS Appliance Company should adopt the Cost Leading Strategy to foster the competition advantage and strengthen the market competitiveness. Finally, the thesis has proposed the following several measures for FS Appliance Company to foster competitiveness, i.e. implement The Cost Leading Strategy. First, expanding the scale and wanting profitsfrom scale; second, strengthening the management of logistics; third, controlling channel; fourth, carrying on the cultural construction taking cost as the centre; fifth, strengthening the work of human resource management.