Study On Competitive Strategy Of Shandong CQL Co., Ltd.

Under the political and economic environment of government macroeconomic regulation and control, and worldwide economic continuously sluggish, China construction machinery industry is at the critical phase of structural adjustment and the phase of integration. Over capacity, over inventory, high pressure of receivables and new comer joining the industry, it causes even strong competition in construction machinery industry market. Shandong CQL Ltd. is one of the construction machinery manufacturers in China market and its main business is wheeled type loader. In 2008, CQL joint US company CAT and it became a critical part of CAT strategic business. This company made a very good progress in cooperate management through introducing advanced management mode, such as 6Sigma, CPS, TPM,5S, MQ12005 etc. In product development and manufacturing technology area, relying on the advantages of CAT, the product performance, reliability and quality has good improvement. But corporate business performance sluggish because there was wrong direction from competitive strategy caused by the difference of culture between east and west and misunderstanding of China construction machinery industry.According to the above background, the article using Shandong CQL Co., Ltd as study case, through the review of corporate strategy management theory and competitive strategy theory and relative competitive strategy in construction machinery industry, makes a study on CQL competitive strategy selection and implementation. First of all, the article makes a comprehensive analysis on external environments which CQL is facing by means of PEST model, five forces model. Finally, we get the result that the opportunities CQL faced are as below:Stable political environment, Domestic economic environment is superior and market has more opportunities to be recovery, Culture becomes and more harmonious and inclusive, Positive changes in the consumer consciousness, engineering market segmentation and demand into diversity, technology environment is relatively mature and relatively perfect supplier chain system, Supplier bargaining power is relatively weak, some competitors operation condition deteriorated. The threatens CQL faced is as following:increased competitive pressure from construction machinery industry and wheel loader industry market share sluggish, competitor growing and becoming stronger, excavator as potential replacement of wheel loader is growing, threaten from potential new comer, environment protection regulation becomes strict. Secondly, this article makes objective evaluation on the internal resource and capability of CQL, comparing with key competitors, CQL has the below advantages:Good manufacturing resource, very rich technical resource and technology pool, enough manufacturing capability, very strong innovation capability, perfect financial capability with good risk management, good brand reputation; the disadvantages CQL faced as below:Organization is too detailed and flat, marketing capability is weak, the ratio of technical resource, no enough high potential technical resource, weak of cooperate culture build, employee engagement. And then, this article uses QSPM matrix for evaluation on CQL strategy, the selection conclusion has been made, the final conclusion of the strategy is differentiation competitive strategy with focus on middle tier and premium market segment. At the same time, it raises a serial implementation ways as below:Cultivating and elevating marketing capability, to realize marketing differentiation; Establishing the objective of distribution channel as customer focus and mutual development with CQL, to achieve distribution channel differentiation; Strengthening technical innovation, to realize product differentiation; Proactive participation of social activity and fulfilling social responsibility, to realize corporate imagine differentiation; Proactive moving forward reliability engineering, to achieve the sustainability of product quality differentiation; Implementing professional product support strategy, to achieve product support differentiation; Implementing organization structure optimization, to achieve management cost reduction; At last, it raises a serial measures to support competitive strategy implementation as below:Optimization of the organizational structure; Top leader leading on strategy implementation; Build innovation type of enterprise culture; Strengthening on integration and utilization of technical resource; Distribution channel and marketing capability development; Reliability engineering extension; Perfection on cost control; Speed up on information construction.This article adapt the way to combine both theory and practices, and using competitive strategy analysis tools, and finally it select differentiation competitive strategy with focus on middle tier and premium market segment as CQL competitive strategy, and at the same time it raises a serial measures to support strategy implementation. It will be benefit for CQL to build its core competency and grow its market PIN and improving on business performance.