Research On Competitive Strategy Of Cables For High Rise Elevator For Company Draka BU Elevator

There are more than 160 years history for the elevator until now,and there are elevator services in China more than 100 years.With the development of China economic and urbanization,the skyscrapers become more and more in the modern city,even the ones with more than 100 m height.These skyscrapers become not only the landmark of the city but also the CBD of the city and many famous enterprises are located in.In next five to ten years,China will become the important market of the super high rise building.About 70% of the super high rise building word wild will be built in China.Developing market of super high rise building brings the booming of super high rise elevator market and it calls the spring of Super High Rise Elevator Cable market.To face to the booming market but also the very bad competition from competitors,Draka BU Elevator must adjust its competitive strategy immediately to take back the lost market shares and return to be the No.1 in super high rise elevator cable industry.Firstly,the thesis took Draka BU Elevator super high rise elevator cable as the research objective,made a deep analysis base on the current situation and problems in Draka BU Elevator super high rise elevator cable business after introduction of Draka BU elevator and high rise elevator cable,got 4 findings:(1)Weakness on flat travelling cable technology.(2)High production cost.(3)Weakness on sales and service.(4)Unknown in Chinese market.Also study well on the reasons of those problems.Secondly,PEST method was used to analyze external operating environment of Draka BU Elevator super high rise elevator cable business including political factors,economic factors,sociocultural factors and technological factors.Michael Porter's Five Forces Model was also carried on in the analysis of five aspects of market competition ability including bargaining power of suppliers,bargaining power of buyers,threat of new entrants,substitutes and rivalry,especially made a deep study on competitors.Used SWOT to analyze the strengths,weaknesses,opportunities and threats of company based on the analysis of company capabilities especially the core competitiveness of Draka BU elevator,and find out SO,WO,ST and WT strategies.Finally,it suggested that Draka BU Elevator shall use Overall Cost Leadership competitive strategy for high rise elevator cable business after the determination of targets,shall use the advantage of company size,capital and technology to achieve a competitive cost which competitors can't achieve,to face to the market especially Chinese market which is more and more cost attractive and beat competitors and win the industry leader position again.In order to coordinate the implementation and guarantee of the competitive strategy,it suggested several comments:(1)Ask for halogen free cables used in buildings widely.(2)Ask for higher level of safety and reliability of high rise travelling cable in elevator industry.(3)Build the first class and high efficient flat travelling cable production line and team in China.(4)Make the strategy partnership with key customers in China.To ensure the competitive strategy working well,it offered some suggestion:(1)establish great enterprise culture.(2)Increase the investment on flat travelling cable production in China.(3)Optimize the internal and external resources.(4)Define measurable goals.