The Research On Competitive Strategy Of CD Company’s Tire Products

CD company mainly produces automotive bias tires, TBR tire, OTR tire, agricultural machinery tires, industrial tire, solid tires and rubber air springs,the annual production capacity of5.2million, more than1,000varieties of specifications.It is the most complete specifications and varieties tire manufacturer in China. In addition to selling the domestic market, the products are also exported to more than70countries and regions, such as South Korea, the United Kingdom, Italy, Australia, South Africa, the United States, Canada, the annual export volume accounts for35%of the total production. Stimulating long-term rapid growth of car manufacturing and mechanical engineering industries, the Chinese tire industry, in recent years,is high-speed developing. Due to the huge Chinese market, the top ten tire companies in the top75in the global tire manufacturers have vied to China, to build factories or set up a joint venture.Currently,50%domestic large tire enterprises is owed by Foreign investment. With foreign tire brand large-scale occupation of the Chinese market in stark contrast, domestic tire companies, only40%of the production can rely on exports. By2009the U.S. tire special safeguard case and the EU to improve the technical standards of the imported tires, the export situation is not optimistic. Facing today’s competitive escalate dometic market and policy continuously shrinking export markets, CD companies must seize market share,establish a strong brand and careful analysis, feasibility studies, design competitive strategy suitable for the company’s development.The main advantage of the CD the company’s performance in:the brand has certain advantages; company visibility; improve the product line; with certain scale advantages; perfect sales and service network; obvious technical advantages. The main disadvantage of the CD company:the cost is too high; inventory high total cost; product homogeneity, the multi-brand strategy is not to really implement; supporting weak alliance. The CD companies face opportunities mainly in:after the introduction of the tire industry, industrial policy favorable for the development of a large tire companies; robust growth momentum of the domestic tire market; product structure adjustment in the market for enterprise development opportunities. The CD companies face challenges mainly in: The growing competitive brands as well as the emergence of many new competitors exacerbate the degree of competition in the market incentives; in enhancing the bargaining power of suppliers; upgrading too fast a threat to the enterprise; natural rubber import tariffs on the company’s cost pressures;pressure of RMB appreciation is not conducive to the CD company exports; future facing the continued acceleration of market-oriented wage increases to bring greater cost pressures.On the basis of the above analysis and comprehensive evaluation, concluded:CD company under the premise of controlling costs, take cost leadership strategy, to be able to be obtained excess profits in the competition. CD company with differentiation conditions, should also vigorously develop differentiated products. According to the status of competition in the market as well as internal and external environment, the cost leadership strategy target market is the inevitable choice of the CD. It could reduce costs by the following ways:lower production and manufacturing costs through technological innovation and management innovation;achieve economies of scale by expanding market share;improve the efficiency to reduce management costs;reduce the variable costs of the product by centralized procurement and the large-scale procurement; expand the size of the business through mergers and acquisitions; adjust product structure to expand the size of the market of the advance product.This study has the effective formulation and Implementation for CD company competitive strategy, is conducive to the company’s products to achieve scale development and win the absolute market advantage, also provides the reference for other domestic tire enterprises competition strategy.