P Piston Company Development Strategy Research

It took only 50 years for China automotive industry to become No.1 in the world from 1956 when the 1st vehicle came into being in FAW. China made a great wonder in the history of world automotive industry. Component industry, accompanying with the fast growth of vehicle, is growing. As the heart of engine, piston industry is facing some challenge during its development, like low centralization and low creativity. Well designed strategy is critical for company in piston industry to grasp the opportunity of development.This article studies the status and opportunity of piston industry around the world with the methods and theory of strategy management, like PEST,5 forces, SWOT, macron & micro environment study, and gives the development strategy to enterprises in piston industry. The writer thinks that piston industry in China is entering the new age to change growth method, speed up strategic change and reforge supply chain. Nowadays, China is stepping into the automotive era, and both macro and industry policies are supplying the best chance for companies, but at the same time, piston industry is facing the challenge drastic competition and increasing cost.This article analyze the advantage and disadvantage of company P, and think company P has got the advantage of large scale, variants, market share, brand, technology and human resource, and has got the large strength and potential. But at the same time, company P has the disadvantage of remote location, dull mechanism, low-tech variants, limited capacity, low activity and no ideas about globalization and lack of service to customers.Develop strategy was given based on the analysis for environment and internal conditions of company P like large scale, forward integration, backward integration, alignment, moderately related diversification, cost leadership, high value-added quality. The implementation support system was also suggested by the writor.