The Research Of Competition Strategy For FM China Piston Business

China has become the largest auto manufacture and consumption marketworldwide after more than10years fast development of automotive industry.Almost all the foreign brand auto companies have entered into China due topolicy of “Exchange Technology by Market” during China Reform and Opento western world in1980s. In order to assist Automotive OEM makelocalized production, also to occupy more market share, most of componentsuppliers have finished their strategy planning in China. The competitionsituation of China auto components industry becomes very hard because ofgrowth of local suppliers due to technology accumulations in past30yearsand their intrinsic low cost advantage.There are huge opportunities and challenges in China automotive market,so FM China Company has to reallocate internal and external resources tobuild core competence and sustainable competitive advantage. It is necessaryto make the decision for future competition strategy in order to implementsales revenue growth plan based on company level strategy. This thesis analyzed macro environment by PEST, and also analyzedindustry structure and competition situation by Porter Five Force model andCPM matrix. Opportunities and threats FM faces are summarized throughanalysis above. Then it analyzed advantages and disadvantages of FM Chinafrom strategic resources, core competence and value chain aspects. Potentialcompetition strategies are diagnosed using SWOT model based on companyvision and development strategy. Priority of potential strategies is defined byQSPM through interview high level managers and onsite investigation, andthe optimal strategy portfolio is defined eventually. On the end of this thesisit gives the measures and suggestions how to implement and control definedcompetition strategies.This thesis is a study of real company management. It defined FM Chinacompetition strategy portfolio based on writer’s work experience andsystematic research of modern enterprise management knowledge, e.g.strategic management and competition advantage theories etc. This studycould be a reference and guidance for mechanical manufacture industry,especially for automotive components enterprises.