The Research On Smart’s LED Lighting Industry Development Strategy In China

The global financial crisis results in demand shrink in European and American market. Based on this macroeconomic background this paper firstly raises some questions to consider: For Chinese traditional export manufacturing companies, how can they deal with order decrease in the international market? How to promote strategic transformation from the single exporting business to combination of export and domestic sales? How to choose the entry point into Chinese domestic market in such strategic transformation? Which kinds of obstacles will be encountered in formulating the development strategy in Chinese domestic market? What approaches will be taken to overcome those obstacles? Then the paper reviews some related theories at home and abroad, including business strategic management theory, competitive strategy theory, the external environment analysis tools and the internal factors analysis tools. To the issue of implementing strategic transformation of Chinese traditional export manufacturing enterprises there exist a great deal of cases. It is absolutely impossible to have a comprehensive analysis in one research. Therefore, the paper chooses SMART as the case. As a matured company operating many years in exportation of electronic product, SMART is now formulating and implementing a transformation strategy to exploiting LED lighting market in China.Firstly, the paper briefly introduces historical background, business model, operational characteristics and the current state of SMART and then it analyzes the company’s human resources construction and its core competitiveness in detail. Secondly, it analyzes the industry environment of the company’s choice to enter Chinese LED lighting market by using SWOT analysis approach. Finally, taking into account of the characteristics of the industry and the company, the paper presents Smart’s formulation and implementation of the strategy to develop the Chinese LED lighting market, short-term, mid-term and long-term strategic objectives and the safeguard measures of strategy implementation.By analyzing the business environment and industry chains in Chinese LED lighting market and focusing on SMART’s R & D capability, operational capability, production capacity and quality control capability, the paper concludes the internal strengths and weaknesses of SMART. In accordance with the core competitiveness, the market opportunities and the threats, the paper tries to formulate the implementation strategy in nature of sustainable growth for SMART in LED lighting market development.On the basis of the research it is hoped to clarify the predictable business prospect and to conclude the sustainable development ideas of SMART. It should be more valuably if the other enterprises which largely depend on the overseas order and sincerely strive to implement the same transformation strategy could have some actual enlightenment from the practice of SMART.