Strategy Transformation Study For Tida Lighting Company Based On Value Chain Theory

Since the beginning of reform and opening up,China has a large number of cheap labor and a wide range of low-rent land to attract a large number of multinational companies have also invested in China,gave birth to the vigorous development of China’s manufacturing industry,which is mainly OEM(Original Equipment Manufacture)in the form of manufacturing Many.However,the passage of time,today is still simply OEM production model has been a huge development pressure,the production of its product price profits are constantly squeezed.This is mainly due to the following reasons,the first comprehensive cost increase,with the emergence of labor in various parts of the year to help boost the wages of workers has been greatly improved,the previous cheap labor advantage has ceased to exist,to enhance the enterprise Of labor costs.And as China’s housing prices continue to rise so that the enterprise plant rental and land costs have gone up,coupled with the cost of raw materials procurement is also rising,etc.These have pushed the overall cost of the enterprise.Second,as the OEM business as a result of the lack of core R & D technical capacity and brand sales channels,in the middle of the value chain is not enough competitiveness and bargaining power,so only helpless passive acceptance of profit compression situation.So today our OEM companies are facing a huge challenge,the urgent need for strategic transformation and upgrading.TIDA lighting company is also in this environment to grow up the OEM company,so it is also facing the challenges.This paper mainly studies the strategic transformation and escalation of TIDA Lighting Company based on the value chain,and studies the following aspects.First,it analyzes the existing strategy of TIDA Lighting Company and finds out the existing problems.Giving the company need to carry out strategic transformation and upgrading of the motivation.Second,the analysis of the current Taiyuan lighting company in which the environment,so that companies can seize every opportunity to develop while avoiding some unfavorable factors.Finally,the author puts forward the thinking and implementation method and the safeguard measures of several aspects of the strategic transformation of TIDA lighting company.Through the research of this paper,the strategic transformation and upgrading plan of TIDA Lighting Company is put forward.First of all,it is necessary to stabilize the existing business and order quantity,so that the operation of the company has a stable transition period.Followed by increased investment in R & D funds to enable the company to master the core product research and development capabilities,to seize the value chain on the upstream intellectual property to enhance the company’s competitiveness.And then try to make up for another short board of TIDA lighting company,that is,market and marketing.Once again the company to do some subtraction action,such as some of the competitive and low-margin value chain link to the outside business to do,and then focus on their own core to make it to the maximum.Finally,the company’s products are more competitive,to enhance the company’s profitability and market bargaining power,control the value of the chain upstream and downstream,increase the added value of the company’s products.