The Cooperation Development And Strategy Study Of Xiongji Electric Co. Limited

The economics of China is developing rapidly since China’s Economic Reform. At the same time, electric industry is booming in the past 3 decades and now it becomes essential for people’s daily lives, especially thanks to the continuous research and development of microelectronic technique in the past 10 years. What’s more, the segmentation of the electric industry is more and more clear, and now divided into 3 segments-household electric appliances, kitchen appliance and personal care appliance. This segmentation enables electric manufacturing companies to focus the production, marketing and sales on one or a few special segments.With the development of science technology, household electric itself is equipped with more and more different functions, which leads to the overall industry situation of a few strong large enterprises lead the market and multiple median or small companies can only work on OEM.In this essay, based on the management experience in XiongJi Electric Co. Limited, the author first elaborate the necessity of technology innovation break through and the market segmentation, also point out the strategy development method and detail. Then analysis the strength and weakness of XiongJi Electric Co. Limited. The strengths are rich OEM experience, market competitiveness of innovation, outstanding management team, strong technical research background, complete end to end supply chain, rich capital investment and etc.. The weakness are low brand awareness, relatively high price of the new IH rice cooker and electric pressure cooker, small domestic market share compared with big companies and so on. Then the author analysis the opportunities and threads of the electric industry, in which the opportunities of XiongJi Electric Co. Limited are the promising future of IH rice cooker and electric pressure cooker, overall booming electric industry, stable oversea IH technique development and so on. The treads are increasing market competition, alternative products and potential competitors and so on.Based on the detail SWOT analysis of the XiongJi Electric Co. Limited strategy, the author suggest should choose the diversification and differentiation strategy, and based on the current OEM business, should also focus on IH rice cooker innovation. So that can satisfy the customer in different market segments. At last, also suggest XiongJi Electric Co. Limited to apply some strategy development security process, such as establish a specialized strategy analysis team, manage the capital investment according to rules and concentrate on market brand building.