Competitive Strategy Study For Company L In Dot Com Industry

This paper intends to use the knowledge for management and economics to analystthe market position and the competitive strategy for Company L in China X86servermarket. It also point out the possible method to secure and gain market share.Company L show slow growth rate and facing the following problem in2010, nothave rich product line, target industry don’t have good margin. Start from second halfyear in2011, Company L using density optimized server to aim dot com industry, bydoing this Company L received outstanding result in2011.The good growth ratewhich lead to more competitors begin to aim the same industry as Company L did in2011. Company L may face more aggressive competition in the feature.Company L analyst the strength and weakness for competitor and also estimate andanalyst for the market size and growth rate for dot com industry in the feature. WeUsing Cournot model to analyst the possible action which Company L and thecompetitors will take. The best chose for both side will be keep the current price but ifcompetitors lower the price, Company L must do the same thing to secure the marketshare. However it will have negative impact for both unit shipment and the revenuewhich compare with the best chose. Then we use value chain model to find out thereason why low cost expansion and maintain differentiation will be the best chose forCompany L.This paper intends to use model to analyst the possible competitive strategy and giveCompany L the following recommendation: in short term make discount and promotethe server to secure the market share. In long term it should pay more attention on lowprice expansion, maintain differentiation and developing a new market. This papermay provide some practice.