Research On The Strategic Development Of Escalator Modernization Business Of KONE Elevators Co.,Ltd

Once again the public is paying high attention to escalator product safety issue, because the accidents frequently happened on the existing escalator recently in china. New technologies and social expectations have led to today’s state of the art for safety. This has led to the situation today of different levels of safety across world causing accidents. However, users and authorized persons expect a common acceptable level of safety. As the escalator industry competition intensifying, only rely on manufacturing as a profitable point, service industry as the auxiliary business model, will be gradually replaced by manufacturing and services industry, service industry might be the escalator industry profit growth point in the future. Over the past 20 years, China’s real estate market and the government’s infrastructure are grown; the demand in escalator market has increased very much. And the quantity of existing escalator in the market also is increased a lot. However, due to the slow development of the real estate control policies and economic development in world recently, the sales of the new escalator sales slowed down, followed by the aging of the increasingly escalator for new business opportunities. Predictably, the maintenance and modernization will become the major profit growth point of escalator industry in the future. The escalator manufacturer should continuously explore the industrial and product structure, transformation of the service concept, innovation mode of operation for the future competition advantage.The thesis makes KONE escalator modernization business as the research objective, Study on the strategic development at the angle of strategic management. A deep analysis is made base on the current situation and problems in KONE escalator modernization business. The first study is to find out the opportunities and potential threats KONE facing, the PEST method is used to analyze external operating environment of KONE escalator modernization business. The second study is to find out the development direction in future and to avoid the potential threat that may cause the constraint for KONE escalator modernization business, Five Forces Model is carried on in the analysis of five aspects of market competition ability. The final study is to identify the core competitiveness of KONE, and select the proper strategy for KONE escalator modernization business; develop the related strategy planning and implementation. In this study, the tool of SWOT is used, which is through the analysis of the internal environment and external environment, enterprise advantage, enterprise disadvantage these four aspects of comprehensive analysis, Relying on KONE core competitiveness and combining the mission and the vision of KONE, it suggested that KONE shall use target competitive concentration strategy and cost leadership competitive strategy together for its modernization business. Target concentration strategy could aim at the European and American market, because the European and American markets is less sensitivity for the price and also less low-end competitor, KONE should be grown faster than the past to increase a product’s sales and market share, in order to form enterprise’s competitive advantage. At same time, it could use cost leading competitive strategy in the Chinese market, focus on the escalators that installed more than 15 years, develop a low price solution for Chinese customer, and because the Chinese market is strong sensitive for the price and also a lot of local low price competition, but the market is huge.In order to coordinate the implementation and guarantee of the competition strategy and ensure KONE escalator modernization business strategy can be implemented effectively, the first is to build the corporate culture as the first class escalator modernization solution provider. The second is to optimize the organization structure and match the new strategy; the third is to optimize the internal and external resources and match the new strategy, the final is to define a measurable goals. At the same time, the enterprise will develop a series of strategic management requirements of the company from top to bottom, from management to normal operators, and strategy in the implementation of continuous feedback and correction, make the enterprise harmonious and stable development.