Research On Promoting Competitiveness Strategy For S Company In Automotive Motor Market

As one of the most important industries in the world,the automotive industry has a history of more than 100 years.From 2001 to 2017,China's automobile sales grew rapidly and became the world's most important growth engine.However,in 2018,China's automobile sales declined compared with 2017,which is the first time of sales decline in recent years.In January and February of 2019,sales volume decreased further more compared with the same period of 2018,with a larger decline.The auto parts industry,such as automotive motor protector,is the foundation of the auto industry,it has experienced many years of development along with the rise and fall of the auto industry.S company is a US-owned company and its protector products are in a leading position in the automotive motor market.However,it faces the challenge of slower growth in automotive market,lack of growth engines in the business,short of product to service customer in market segment,gradual weakening of quality advantages,high cost and high prices.What factors influence the continued competitive advantage of S company's protector products in the automotive motor market?What competitive strategies are needed to enhance the company's competitiveness in this area?This is the questions to be explored in this article.This paper firstly analyzes the external environment of S company's automotive motor protector products by using PEST analysis model and Porter's five-force model,introduces the internal situation of S company.Secondly,further summarizes various problems of S company's weakened cormpetitiveness facing and analyze the reasons for this in depth.The root cause for the facing problems are:(1)Traditional business growth meet difficulty,the development of new business need more time;(2)The lack of product types,the lack of innovation and the lack of new talents which need to be cultivated;(3)The continuous improvement of quality by competitors while S company has less improvement;(4)High raw material purchasing price,high logistics cost and manufacturing cost.Thirdly,analyze the strength,weakness,opportunities,threats which S company faced.Based on the SWOT matrix,the company's competitive strategy choices are elaborated,and think that the optimal cost strategy is current suitable strategic choice for S company.Finally,the promoting competitiveness strategy for S company in automotive motor market are summarized from four aspects.They are mainly reflected in:(1)Adjusting the growth mode to create long-term value;(2)Adopting multiple ways to achieve product expansion;(3)Continuously improving management to help quality improvement;(4)Internally reducing costs and creating value externally.This paper constructs a competitive promoting strategy and the implementation plan based on S company's strategic goals.The research helps S company to enhance its competitiveness and achieve corporate goals.It provides ideas and analysis methods for other companies especially the similar auto parts companies to solve the problem of weakening competitiveness.