Research On The Development Strategy Of Shandong Yu-tai Auto Parts Corporation

China’s auto production and sales exceeded18.5million in2011,hasbecome the world’s first large-scale producing and marketing country. Theposition of auto parts industry, which as the basis and important part of theautomobile industry, is very important in the national economy. However,its situation is very serious, mainly reflected in two aspects: Firstly, thevalue of the products is generally low, the industry is vulnerable to besqueezed by the upstreams and downstreams, and lack of bargaining power; Secondly, foreign parts enterprises massively enter into theChinese market, and took control of more than90percent of the keycomponents market share, as well as has brought a huge challenge to thelocal parts enterprises and products. In recent years, a number ofautomotive components multinational corporations have established itsAsia Pacific regional headquarters in China, and will pay more attention tothe concern of China’s auto and auto parts market, the more severecompetition has in the face now. In this context, how to scientificallychoose and carry out the development strategy to improve thecompetitiveness of enterprises, has become the main issues of auto partsenterprises in China. This article is based on this understanding,comprehensive analyzed the development strategy of Shandong Yu-taiAuto Parts Corporation, and proposed the strategic choices and promotingmeasures, which are feasible suitable and for future development.First of all, this thesis reviewed the relevant theories of automotiveindustry and corporate strategic management; Then, deeply study of Yu-tai’s external environment to found thecompany’s external opportunities and threats from four aspects, they aredevelopment status and trends of domestic and foreign auto parts industry,the PEST macro environment analysis, SCP industry analysis and Porter’sfive forces model of stamping parts industrial competitive analysis;Besides, comprehensive study of the company’s situation of internalcapacity, pointing out the advantages and disadvantages through analysistools, they are financial analysis of the radar chart, the Porter’s value chainmodel and the VRIO model; In addition, based on the above analysis andcombined with SWOT matrix model, this article proposed Yu-tai’sdeveloping strategic choices and implementation, including guidingideology and principles, development ideas and targets, the key issues tobe resolved as well as promoting and safeguard measures and so on.Finally, this paper summarized the full paper.