N Battery Company-Differentiated Competition Strategy Study

After development of approx. 160 years, Lead Acid Battery has become energy storage solution with performance of maturity, safety, reliability and economy. However, its energy density has inferior position compared with new energy storage products such as Lithium Ion Battery, so that the whole industry is regarded as sunset-industry. Furthermore, the competition within the industry is fierce. So, Lead Acid Battery enterprises shall conduct Strategy Study to seek the way of survival and development.This thesis is composed of two parts: Case Text and Case Analysis.The author illustrates an event in the Case section: A lead acid battery company(“N Company”) who was founded in 1988 in Shenzhen, has passed certain stages such as establishing, growing up, upgraded by acquisition by foreign company, growing up further, strategic relocation, and now stagnation, and nowadays it is an a very difficult situation that the whole lead acid battery industry is regarded as sunset-industry, and its size is relative small, and it reacts the market change slower due to long management chain, etc.In the Case Analysis section, the author begins with consolidating the theory foundation of strategy study for lead acid enterprise, and then conducts background analysis for lead acid battery industry and N Company’s position in the industry. Then during conducting strategy system analysis with PEST model, Five-Forces analysis model, internal analysis and SWOT analysis model on N Company, the author finds that the policy and legislation around N Company is tightening, the traditional manufacturing industry is going down, the society desires service more and more, and the technology of Lead Acid Battery has come to the bottle neck, and furthermore, customers and suppliers are at stronger position at price negotiation, alternative products such as Lithium Ion Battery is challenging, the potential entrants and existing competitors’ threaten is critical, and N Company has both strength and weakness facing the opportunities and threats. So, the study consider that N company shall apply Differential Competition Strategy, and the author proposes Differential Competition Strategy Design for N company, and predicts the difficulties N Company will encounter when she implements the strategy, and also provides some solution to N Company.