SCTR's Competitive Strategy Research

SCTR is the first company in China to specialize in the production of radial tires by introducing advanced technology, and is currently the largest radial tire production base in south China. Since the beginning of this century, SCTR, relying on the initial movement in the high-performance tire industry, has seized the opportunity in the international market, and obtained appreciable economic results. But in recent years, with the rapid development of China's auto market, the world's tire giants have strongly squeezed into the country, and the domestic tire companies have quickly imitated and grown up, coupled with the adjustment of national foreign trade policy, international trade barriers, technical barriers, and the rising raw material prices, all of which have brought serious impacts on the profit level of SCTR. At present, it is of important practical significance for the survival and development of SCTR to adapt to changes in market conditions, formulate a strategy for its own development, and improve the competitiveness of the Company.This paper, taking SCTR Company as the research object, analyzed the overall environment by use of strategic management theory and method, and PESTEL framework; analyzed the industry environment and industry competitor by use of five forces model; explained that SCTR must seize the opportunities offered by the current rapid development of domestic economy, support of national industrial policy, and less corporate concentration; and also analyzed the business capacity and resources by use of value chain tool in accordance with VRIO standard, and concluded that the company has the advantage of low cost and international initial-movement; summed up the threats and opportunities, advantages and disadvantages by use of SWOT framework, and worked out the strategic intent of "Create world famous brand in China, and produce China's most durable tire", as well as the business goal of "Increase the production by 50% within five years with return-on-equity ranking in top three of the same industry", so as to establish SCTR's strategic position in domestic and international markets during next few years; and made strategic choices: choose low-cost, differentiation strategy in the business unit strategy, and proposed the implementation of strategies accordingly: adjusting the organizational structure and processes to match the Company's strategy, and ensuring the strategic success by establishing marketing strategy compatible with the Company's strategy and performing personnel management, information management, technology management and so on. In addition, this paper also raised the key points concerning the management of changes in strategy, so as to provide a reference for SCTR's change in future strategy, as well as a helpful reference to other China's large or medium-sized tire enterprises.