Research On Competitive Strategy Of H Company Based On Segment Market

In the 1990s, along with the deepening of China’s reform and opening up, more and more foreign companies chose to establish their own factories or select local companies as their suppliers due to the low production cost, which caused a fast development of small and medium manufacturing enterprises in China. But in recent years, with the uprising of production cost and the rise of new developing countries, many of these companies have begun to lose their competitive forces in international market and face a survival crisis. Some have seized the opportunity of fast developing domestic market and have successfully changed their target market to China.The company, H Technologies, analyzed in this article is a typical example of these companies. The company is a professional factory which produces high quality silicone rubber keypads and plastic keypads. From the year it founded in 1993 to 2003, all the products it produced were shipped to abroad through its partner, a trading company in German. But from 2000 to 2003,the company faced a big problem of continues sales shrinking and falling which caused survival crises. In 2004, H Technologies started to organize its own sales team and develop domestic market and after years of effort, the company successfully gained its own customers in China market, especially in automotive electronics keypad industry. H Technologies has become one of the lead companies of automotive electronics keypad manufacturer and have gained about 20% of in the market share in China. But the problem occurred again, after the year of 2010, because of the Downturn in the international economic situation, over capacity of silicone rubber keypad production and fast development of automotive industry in China, more and more rubber keypad manufacturers start to focus attention on this automotive electronics keypad market. The competitions are getting tougher, and H Technologies is facing new challenges in the game.Through the study of the Competitive Intensity of automotive electronics keypad market and the Competitiveness of H Technologies, we are trying to find a new competitive strategy which may help the company to keep continuous and even better development. Also, such kind of analyzes methods and thoughts might suggest lessons for similar small or medium enterprises in China.