The Research On Competitive Strategy For YC Company

Qingdao Yongchang int’l Leather Co. Ltd.(hereinafter referred to as the YC company) is a large foreign enterprise, mainly producing leather and leather produvts. YC company was earablished in2003, with a total investment of$46million Yuan. After10years of rapid development, although satisfactory results have been achieved, YC company is facing gradually increased market competition, YC company must analysis and feasibility study and design suitable competitive strategy for its own development.Through the actual investigation, the author use the analysis tools to study YC company’s external opportunities and threats, as well as the company’s internal strengths and weaknesses.YC company faces the opportunity lies in:the political and economic environment is stable; industry tend to standardize; the demand of consumer markets; meet with with the social consumption concept and the concept of environmental protection; industry production technology mature; industrial barriers high; clean production and recycling technology; perfect competition the market etc. While the main threat facing the enterprise lies in:the national environmental policy is strict; the main suppliers bargaining ability; the main customer bargaining ability; developing countries competition threat etc.YC company’s internal strengths are:brand influence; the scale of production;excellent production equipment, advanced manufacturing technology; well-known customers resources; outstanding production management capability; healthy financial condition; excellent loyalty team etc. YC company’s major internal disadvantages: weak bargaining power; weak purchasing power, lack of logistics capacity; and relatively weak sales team, and so on.Through comparative analysis,this thesis concludes that YC company adopt the overall cost leadership strategy to be able to gain super profits in the competition market.For the overall cost leadership strategy to implement effectively, YC company should focus on the following areas:the framework of the company, financial management, human resource management, technology, procurement, operations, marketing and sales, logistics input and output, service activities. Specific measures include:first, reduce the cost of purchase; second, control logistics costs; third, lean production; fourth, upgrade marketing efficiency, reduce cost of sales; fifth,establish a centralized organizational structure, improve the basic management, strengthening financial management; sixth, upgrade the human resources management; seventh, strengthening the technical transformation.eighth, establish strict control systems to ensure implementation of the strategy.This study not only helps to cultivate the core competitiveness of YC company, to remain invincible in the fierce competition in the market, but also, the conclusions of this paper can provide a reference model for same companies in this industry to develop their own competitive strategy.