The Research On Competitive Strategy Of H Company

Company H, established in January8,2003, is a joint venture of Hitachi Air-Conditioning Co., Ltd. with Hisense Group companies and mainly engaged in the production, research, sales and service of central air conditioning equipment. It mainly produces Inverter VRF central air-conditioning products. Its Products using "Hitachi" brand, for the main components are offered by Japan’s Hitachi Corporation. Hitachi is an enterprise of central air-conditioning industry with strong technical strength. It is more than70years since Hitachi engaged in the central air-conditioning industry. The most advanced air conditioning scroll in compressor technology was invented and patented the world by Hitachi in1983. Company H is combined by H’s technical superiority and Hisense Hitachi operational advantages. Its production is easy to use, maintain and control and energy saving. This air-conditioned form, after ten years of cultivation in China has been widely accepted by the Chinese users, especially in government offices, business offices. Currently it is being accepted by the majority of high-end home users. The product has become the fastest growing and the highest market share of products.H Company’s external advantages:its market has achieved great success since its inception in2003. It achieves30%growth more than ten consecutive years, and its market position ranked second in the industry. In the field of public construction projects and real estate supporting, H Company has gained the biggest share. H Company enjoys high reputation in the market for its good quality. In addition, H Company’s integrity, responsibility and excellent sense of cooperation has been widely accepted and recognized by the market, which is a good foundation for further development. From the entire social environment point of view, China’s economic revival plans will inevitably bring about the development of economy and the improvement of people’s living standards. As high-end products, the inverter multi central air-conditioning must occupy bigger market share with the economic growth; more importantly, as the people become more affluent, and real estate prices becomes higher, the popularizations of home inverter multi central air-conditioning in every household has become an irresistible trend. Meanwhile. H Company faces many external threats. From a policy perspective, the country’s continuing implementation of the regulation on the real estate project is bound to bring real estate slowdown or even declination, the state strictly limitation of government building construction will inevitably results in the drop of new government projects. These two aspects, as the company’s advantages, have a great impact on business growth of the central air-conditioning. From the point of view of competition in the industry:domestic brand such as Gree, Midea with its traditional advantages of channels and brand are vigorously entering into the central air-conditioning industry, and has achieved rapid growth; the U.S. Department of "Legend "-Carrier, York, Trane, McQuay in traditional market, also strongly enter into the inverter VRF central air-conditioning market; Japanese brand such as Mitsubishi Electric, Toshiba, Fujitsu also has factories in China, through localized operations to strengthen the competitiveness of the Chinese market. Air-conditioning Industry has tapped into the era of full competition, and the next decade is the most tragic period of shuffling. Ultimately, only one or two competitive companies can survive, and the whole industry must undergo a bloody baptism.H’s internal strengths:At the corporate level, the company owns a stable senior management who has acquired solid basic skills through long-term practice; the company has been establishing good corporate culture and full awareness of the market and strong sales capabilities; at the technical level, the company has formed a strong R&D team and can effectively combine technical strength of the headquarters in Japan, with the timely introduction of a variety of market-leading products, or follow the market’s ability; at the production level, the company has advanced production equipment, first-class quality assurance system and adequate capacity; on the operations side, the company has a good profitability, sufficient cash flow; on the personnel side, the company not only can cultivate first-class talent also can retain top talent. Meanwhile, H Company also has inside Disadvantages:corporate awareness of entrepreneurship begin to fade, fighting spirit in the product development degenerates, R&D ability cannot meet with the market, product quality control problems, the management lags behind growth in business scale, timely delivery levels is inadequate etc. In this paper, I would provide a competitive strategy for H Company by analyzing its external environment and internal situation combined with their own long-term target based on its actual situation, in particular by analyzing the current situation and future trends in the central air conditioning to achieve the goal of10billion sales within5years. In addition, H Company is a powerful enterprise developed from a small company. It can provide a great reference for any enterprise that wants to achieve bigger market share; a good classic case and a strong reference for manager who wants to study business strategy.