A Study On Best-cost Strategy For Electronic Components Manufacturing Enterprises In China

As the growth rate of global economy started slow down, consumers are preferred to buy products with leading technology, low price and cordial service. These requirements are highly demanded by electronic products. In the meanwhile, with the advent of a mobile Internet and 4G Communication network, the competition in the industry of mobile terminal electronics is extraordinarily stiffened. In line with this tendency, the manufacturers of electronics are constantly developing new products of advanced techniques and competitive price to get their grip in the market. For most of the producers, it is difficult to obtain competitive advantage solely by applying low price and differentiation, and the best-cost provider strategy integrating the differentiation and cost leadership has gradually become the first choice of the most electronic producers.PCB manufacturing is mainly producing customized electronic components, and it lies in the upstream of the electronic industry. Its survival and development is closely related with the evolution of electronic products. The producers of electronics request the PCB manufacturers to provide their products and services with high technology, good quality and reasonable price, which have driven most PCB manufacturers to choose the best-cost provider strategy.Based on management theory of Best-cost strategy, the author makes an objective analysis of the industry status, corporate conditions, external opportunities, corporate strengths and weakness of Company G which is a PCB manufacturer of customized electronics and suggests the best-cost strategy as the strategy for Company G‘s development in the future. This thesis is firstly introducing the background, problems and significance of the research, and point out the method and framework for further study; and then the literature review is developed form the perspectives of core concepts, related theories and main analytic tools; in the third part of case description, the development history of G Company and the problems confronting with it are objectively described, and these problems include the falling revenue, strong seasonality of its products, concentrated clients and high risk of company operating. And based on this, the industry environment and the internal capability of G Company are explored and analyzed with a conclusion that the best-cost provider strategy is the most appropriate method for G Company‘s sustainable development and the root causes of G Company‘s problem is identified. At last, the thesis also comes up with some approaches to implement the strategies mentioned above from six aspects:market exploitation, supply-demand management of mutually beneficial, organizational structure, service system, technology innovation, and information management.The results of this analysis hope to provide reference for PCB manufacturers or many customized electronics manufacturers in the formulation and implement of best-cost strategy.