A Study On The Development Strategy Of H Valve Company

In recent years, Chinese valve industry has entered a period of rapid development, and currently has become one of the largest valve machining center in Asia as well as the largest valve market in the world. However, although China has been a valve manufacturing country, it is still very far behind those valve manufacturing powers. In this content, it has become an important proposition for small and medium valve enterprises to ponder how to accelerate the development, enhance the sustainable competitiveness, thus to gain a firm foothold and develop steadily in the increasingly competitive market. This paper takes H valve company as the research object. On the basis of sorting out corporate strategy theories, it focuses on PEST analysis, Porter’s five forces model analysis, SWOT analysis and other tools to study H company’s industry and external environment. Taking production capacity of the company, technical level, main financial situation and other internal environmental analysis into consideration, the paper researches on enterprise development strategy, strategy implementation and other issues, hoping it will provide a reference for the development of small and medium valve enterprises.Through the research, this paper thinks that Chinese valve industry has huge market potential. With the feature of "low-end export, import high-end", the main direction of competition lies in "low quality, import substitution"; both suppliers and customers of valve companies have higher bargaining power, and compared to other competitors, products of H valve company possess "high cost", and are more susceptible to market acceptance; the company’s strengths include stronger R&D capabilities, lower price, stronger quality control and cost control; weaknesses are the small scale, low brand awareness, and not perfect management; the opportunities mainly lie in the expanding demand of market for valves and "import substitution" products with high cost; the rising costs, financing difficulties, products and technologies which are likely to be imitated are the key threats; the market position of H valve company should be specialized market-demand positioning, high-end positioning of the valve series, strategic positioning of service differentiation, and intelligent, information-based market leadership positioning; the company should implement all above competitive strategies from production, R&D, marketing, enterprise system and cultural management, also should pave the way for the enterprise to accomplish the strategic transformation from cost leadership to differentiation.