Research On Competition Strategy Of AP Company

With the continuous development of social economy and the improvement of various kinds of security systems, modern people are increasingly concerning about the quality of their living environment, among which air quality is paid a relatively high degree of attention. In such an environment, previously rarely used air filters among civil products now have been applied to more and more occasions. Meanwhile, the air filter manufacturing factories have mushroomed. Although air filtration developed more than thirty years, this industry in China started late. Due to the lack of a perfect system of standard, the good and bad manufacturers are intermingled, which brings some hidden troubles to the sound development of this industry. Aiming at this situation in the market, how to keep the industry moving, making it staying at the leading position and establishing a healthy order of this industry have become the focal points that needed to be concerned now.Selecting a Japanese-owned manufacturer of air filter as the research subject, this paper analyzed its competitive strategy combining empirical analysis with normative analysis, quantitative analysis with qualitative analysis. Firstly, it gave an introduction of the overall status and the development tendency of the air filter industry, among which PEST method has been applied to analyze the macro-environment. Then, it analyzed the competition pattern of the industry. It mainly utilized Five Forces Model to make deep analysis of five forces in this industry. Besides, the author predicted the tendency of this industry according to the actual working experience in air filtration industry. Finally, connecting with the practical situation of AP Company, this paper analyzed its advantages and disadvantages of the internal and external resources with methods including SWOT analysis and value chain analysis. Then this study formulated the competitive strategy conforming to the development of the company. Some exploratory work has been undertaken including optimizing value chain, setting organizational structure, determining research direction, developing project organization, formulating product strategy as well as marketing strategyIn conclusion, although faced with the huge expected market, a large variety of manufactures in air filtration industry are not qualified to response to the fast developing market because of the similarity of the products, the fierce price competition and so on. In this market expectation and intense competition, through using competitive strategy, we found the conclusion that AP Company was supposed to use differentiation strategy. When applying this strategy, companies need to optimize the internal value chain, reorganize the structure and improve the research and development capacity as well as the level of research personnel according to the development trend of this industry. Besides, companies need to make reliable input-output analysis for the R&D project and supervise it. According to the target customers if they are professional customers and the specificity of AP Company project-oriented marketing, rectangular project-oriented organization structure need to be made.