The Study On Business Strategy Of AG Company

By 2018,China’s auto market had been the world’s largest sales volume for 10 consecutive years.With the rapid development of the automobile industry,China’s auto parts industry has entered a rapid growth period.In order to maintain the competitive advantage in China market,the world’s major auto parts multinational companies are increasing their investment in R&D and expanding local production bases in China.The competition of China’s auto parts industry is more intense than ever.The competition in China’s auto parts industry is unprecedentedly fierce.The development of China’s domestic autoparts enterprises is becoming increasingly difficult.Under this background,more and more autoparts manufacturers have taken price cuts to protect themselves.AG company,which specializes in the production of automotive parts filter products,has also been greatly affected.The order volume has shown a significant decline.AG company’s regular marketing strategy based on low-cost competition alone has been unable to adapt to the rapid changes in the external environment and the increasingly competitive trend in the autoparts market.Therefore,it is necessary to research and analyze from the perspective of enterprise strategic management,to discover the enterprise resources and capabilities of AG,and to develop a systematic,complete and suitable business strategy according to the characteristics of the filter market segment which can help AG company to maintain its competitive advantage and promotes long-term sustainable development in an increasingly competitive global environment to achieve the company’s strategic goals and vision.In this thesis,PEST model is used to analyze the external environment of AG Company.Then,Porter’s Five Forces Model is used to analyze the competitive structure of AG Company in the filter market and industry.Also this thesis teases out the partners and competitors in the market where AG company is located and summarizes the market opportunities and threats faced by the enterprise.Then,it analyzes the resource superiority in the enterprise,digs out the core expertise of the enterprise,and makes the strategic choice to develop and strengthen the core expertise.The thesis also uses the STP theory to help AG company to subdivide the market,to select the target market,and then to make the target market positioning.Through the matrix analysis of SWOT model,the action program is determined for the four strategic combinations of enterprises.Finally,based on the AG company’s business strategy and objectives,the implementation and guarantee measures are worked out to ensure the smooth implementation of the company’s strategy,and finally to achieve its strategic objectives.In the process of making the business strategy,this thesis collects a large number of data on the automotive filter industry,and comprehensively applies various enterprise strategic management theories and analytical models.It is expected that this research can provide some reference value for the similar autoparts companies when they make strategic development plans.