Research On The Development Strategy Of Zhongtian Auto Parts Company

With the rapid growth in Chinese automobile industry, Zhong Tian Auto Parts Company develops very quickly. When the economy enters China’s new normal, Zhong Tian Auto Parts Company faces more and more intense competition and market conditions. There are many common problems of domestic companies, for example, increasing manpower cost, a small amount major customers, the bad corporate culture, the weak competitive ability, and inadequate human resources. These show that the company needs the strategy.Every company has its strategy, although the strategy is maybe informal, shapeless or casual. Every company moves to an objective. Unfortunately, some companies don’t know their objectives. "If you don’t know the objective, the result is failure along any road." These words show how important the strategic management is to companies. If Zhong Tian Auto Parts Company wants to develop quickly, enhance competitive advantages and improve profitability, it has to solve problems, makes the correct development strategy, and gives the correct objective and roads.The paper analyzes problems of Zhong Tian Auto Parts Company. It gives development strategic objectives, strategy choices, implementation plans and protection measures. Firstly, this paper reviews Michael Porter’s Five Forces Model and SWOT theory. Secondly, analyzes political factors, economic factors, social development factors, population factors and technical factors. With Michael Porter’s Five Forces Model, the paper analyzes the competition environment, from intensity of competitive rivalry, threats of new entrants, threats of substitute products or services, bargaining power of suppliers and bargaining power of customers. Thirdly, analyzes internal problems from resources factors, management factors and ability factors. Finally, with the previous research and SWOT analysis, the paper tells the development strategy objective, choice, implementation and ensuing methods.This paper tries to analyze the market situation of the Zhongtian Auto Parts Company and makes the development strategy according to theories of strategic management. I hope that it is meaningful to not only Zhong Tian Auto Parts Company, but also other domestic auto parts enterprises.