A Study On Competitive Strategey Of Company A

With China’s economy entering the phase of "new normal",the economic structure being further optimized,the driving force transferring from the previous investment to innovation,the nation has made clear requirements to promote the increasing capacity of new energy.The guidelines of promoting electricity replacement assigned by the eight ministries have been put into practice gradually.The power replacement work has ushered in a favorable situation.The construction of new rural power grids will further enhance the market size of intelligent electricity collection terminal products and drive the demand for power line carrier communication products to grow.Company A,since its foundation,has been committed to the carrier communication technology in the field of national smart grid application and promotion as well as other areas of application and development.The company’s main business is the research,production,sales and service of power line carrier communication products.It has strong scientific research and production capability in the field of spread spectrum communication,signal processing,communication technology,automatic control,computer application and mechatronics integration.It is a professionally technical company in the field of power line carrier communication with independent intellectual property rights,whose research of characteristics of power line is on the domestic leading level.In recent years,the company’s operating income and net profits continued to grow,the scale of enterprises grew steadily,and it has accumulated certain abilities of risk resistance.Meanwhile,it is also faced with the consequent industry competition risk in its progress of rapid development.The company’s main products are mainly used in the information collection system of the national smart grid.Changes in the relevant policies of the State Grid Corporation distribution,the State Grid Corporation and its affiliated power companies’ bidding schedule and placate progress and other factors will cause the fluctuation of its operating results.The core raw material will not meet the company’s normal production needs due to the possible supply interruption of bare chip suppliers caused by the majeure.As the smart grid construction plan promotes vigorously the development of power line carrier communication technology of domestic grid corporations in the future,there may be more domestic and foreign chip manufacturers to join the market competition.If the new technology products from other competitors fit rapidly information collection system,it will have a major adverse impact on Company A.If the company couldn’t keep and enhance its present competitive superiority in the future market competition,it will possibly lose its advantage.Using the sales of power line carrier communication products of Company A as the research object,combined with the SWOT and PEST strategy analysis tools,this article scans Company A’s internal and external environment,combs and analyzes the opportunities and threats from the external environment,as well as the advantages and disadvantages in the internal company.Through quantitative analysis of QSPM matrix in the competitive strategy of the company,the article indicates that Company A should give priority to differentiation strategy and also give consideration to centralization strategy.It should adopt differentiation strategy focusing on information collection of the electric power industry market,foster strengths and circumvent weaknesses to increase its market share.At the same time,a series of the implementation of the approach are put forward.Finally,combining the need for the implementation of the competitive strategy and the present situation of Company A,the article presents some measures in the strategy implementation such as the enterprise culture management,human resource management,technology research and development management,financial management and marketing management to ensure the smooth implementation of the competitive strategy for the company.This article focuses on theory to guide practice,applies competitive strategy analysis tools and chooses differentiation strategy of information collection market in the power industry.It proposes the competitive strategy of fostering strengths and circumventing weaknesses to increase Company A’s market share and formulates the corresponding implementation.Meanwhile,the competitive strategy implementation and measures are put forward,which have positive significance in establishing a differentiated competitive advantage,improving market share and enhancing operating performance.