Research On Company A’s Competitive Strategy

Before the world economic wound got well from the subprime crisis shadow, the European debt crisis scattered salt on it. In such environment it is hard for China to develop its economy well alone. By far it seems the world economy is on the way of recovery but the rhythm is still very slow. The Chinese export has been impacted in such situation. Material cost and staff cost increased because of inflation. All of these factors made the furious competition industry like SMT from bad to worse. Company A is a SMT factory struggling to survive in such bad situation. The aim of this thesis is trying to help company A to solve the current difficult situation and to be success in the competitive situation by using Michael E. Porter’s Competitive Strategy which has been widely accepted by the world. In this thesis, the research method is analyzing the case by using the theory instruction:Analysis the marco-economy relative to company A by PEST method, analysis the SMT industry environment by Porter’s Five Force model, analysis company A’s internal environment by value chain analysis. and finally finding the answer. Firstly the outer environment of company A is analyzed from PEST aspect. Then the internal environment especially the value linkage as key point is analyzed. By analyzing the outer and internal environment of company A, the competitive strong point and weakness of company A is found out. Then SWOT method is used to analysis the strong point, weakness, opportunity and threat situation company A is facing. Finally after compare the three competitive strategy and consider the situation of company A, the thesis thought that company A should use Overall cost leadership and differentiation strategy to improve the current situation and develop better. By improving company A’s sales and OM level, the competitive strategy can be implemented. CFT (customer focus team) is originated by one of the SMT electronic production giant Solectron. The customer is set as a project team per CFT. The project manager is the team leader. In the team the project manager lead the team member to perform the project issue and finally accomplish the customer’s requirement and make sure the customer is satisfied with the service the company provided. Now it’s widely used in some successful companies. The limitation of CFT is just taking it as its aim to accomplish the customer’s requirement and make sure the customers are satisfied with the company’s service. The create points of this thesis is it has broken through the limitation:Besides taking accomplish customer’s requirement as CFT mission, it is thought in the thesis that the CFT can also lead and perform many program which could be benefit to the company. It can break through the department block and lead the team to work efficiently to solve problem, continually create more value for the company and continually strengthen the company’s competitive capability. Besides, the thesis also broke through the traditional planning and production management way:get the production status by collecting the information from the process. In the thesis it is pointed out that by website and system to know the production status correctly any time and make more prompt, efficient and reasonable production plan.