A Case Study On The Product Development Strategy Of K Company

After more than 30 years of development, the bank card industry of China has made quiet great progress when it started at 1985. Now China is recognized as one of the world's fastest-growing and greatest-potential country of the bank card industry. As closely related with the bank card industry, the electronic payment industry and the POS industry also have got swift and violent development. However, after several years of development, there has been unusually intense competition between the domestic POS manufacturers, which has gradually formed an oligopolistic competition situation. On the one hand, the major customers of the POS manufactures such as China Union Pay, the major domestic commercial banks and the third-party acquirers have strong bargaining power. On the other hand, the development of the Internet online payment, the mobile payment and other emerging payments breaks the competition pattern of the traditional POS industry. As a company with the vision of being long-standing in the POS industry, in order to survive and develop in the industry environment which is full of opportunities and challenges, K Company needs to sort out how to use its advantages, fix shortcomings and deficiencies, seize opportunities, implement market-based strategies reform, pool resources together to form a new competitive edge and realize scientific, sustainable, and healthy development. Thus it is important to study the product development strategy which is suitable for its development to meet the demands of an ever-changing market.This thesis takes K Company as an example, and makes a detailed analysis and in-depth discussion of the internal and external environment at present stage. And then the author summarizes the strengths and weaknesses faced by this company, and the opportunities and threats which this company faces. The author will apply the PEST analysis model, the Porter's five forces analysis model, and the SWOT analysis model during the analysis. The goal of the article is to formulate K Company's product development strategy. The main contents are as below: For one thing, the author sums up the strengths and weaknesses of K Company by its internal enterprise resource and capacity analysis. For another, author summarizes the opportunities and threats of K Company by its external macro environment and industry competitive environment analysis. Finally, based on the SWOT matrix analysis of K Company's internal and external environment, K Company should develop new product to adapt to the new demands of current market. According to the theory of Ansoff matrix, it is product development strategy. So the author points out the direction of K Company's strategic adjustment later which is from the market penetration strategy to product development strategy. As the first and key problem of product development strategy is what product K Company should develop, the author determines the development direction and content of the new product through an in-depth analysis of the development trend of the POS industry from the aspects of customer demands, consumption style, target market, and business model later. And then the author lists a couple of reasons to explain that it is quite feasible for K Company to develop this new product. At last, in order to truly improve the executive force of the product development strategy and guarantee the new product can be developed more smooth and efficient, some suggestions are presented by the author.