| Since the 1980 s,in the context of global economic integration,with the development of labor in developed countries,With the rising cost of power,the production and manufacture of small household appliances has gradually shifted to developing countries such as China.Many private enterprises have started to manufacture small Western-style household appliances for Western brand enterprises.Through years of development,many enterprises have gradually developed and expanded.Xinbao Electrical Appliances is the representative enterprise of designing and manufacturing small Western-style household appliances.By 2018,Xinbao Electrical Appliances has become a successful manufacturer.Lianhe has successfully landed in the capital market in 2013.For many years,many small household appliances manufacturing enterprises mainly export OEM.Due to the restrictions of technology,brand channels and other aspects,the operation of enterprises is deeply affected by the rise of raw materials and exchange rates and the cost of manual manufacturing.Faced with the strength of Western brands,the bargaining power of enterprises is weak,it is difficult to transfer costs downstream,and the overall profit of the industry is small.After years of industry shuffling,some enterprises have withdrawn from the market.Since 2013,the economic development of western developed countries has slowed down further,the overall world economy has slowed down,the US trade protectionism has risen,and the export of Western-style small household appliances has been blocked.However,the domestic small household appliances have witnessed rapid development.Faced with this changing situation,many enterprises have faced bottlenecks in development.Xinbao Electrical Appliances has followed the comprehensive cost-leading strategy for many years to open in some product lines.It is urgent to find a new competitive strategy to face the new situation.Starting from the theory of competitive strategy,this paper introduces the main content of competitive strategy of management masters such as Michael Porter,which provides theoretical basis for the source and choice of competitive strategy.In the aspect of small household appliances strategy,it also refers to the content of value chain and brand upgrading introduced by some domestic scholars,which provides theoretical basis for the paper.Starting from the macro-environment analysis of enterprises,this paper fully introduces the new challenges and opportunities faced by the industry by using PEST and Michael Porter's Five Forces Model,uses the value chain model to analyze the inherent environment of Xinbao Electrical Appliances,points out the problems existing in its single overall cost-leading strategy,and puts forward strategic alternatives by using SOWT theory and method,combining with enterprises.The resource capability and enterprise goal of the industry have drawn the conclusion that the enterprise must use its advantages and adopt the strategic combination of differentiation competition strategy and comprehensive cost leadership strategy.Overall cost leadership strategy establishes greater advantages for enterprise-scale products,and differentiated products open up new directions for enterprises to compete in dislocation and solve cost disadvantages of product lines.Product differentiation is a means of high-end and innovative product quality,and an important competitiveness to improve the bargaining power of Xinbao Electrical Appliance Industry.According to the new strategy,the paper formulates short,medium and long-term goals,decomposes the steps of strategy implementation,and puts forward that Xinbao Electric Appliances must make full use of its own resource advantages and technological advantages to further develop the company's technological innovation ability,marketing ability and operational ability.Use human capital,material resources and organizational system safeguards to achieve the new strategic objectives.The innovation of this paper lies in the treatment of Boston Matrix "lean dog" product line,that is,the "cost inferior product line" under the overall cost leadership strategy.Normally,we should abandon these product lines.But we can make the "lean dog" product line shift to other quadrants by changing the enterprise's competitive strategy and implementing differentiation.On the one hand,Xinbao Electrical Appliances has established a great competitive advantage in Western-style small household appliances.It has the resources and technology to do so.On the other hand,it needs the enterprise management to replace the financial objectives with strategic objectives as the superior level,allowing technology innovation and R&D to exchange time for the survival space of products. |
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