A Strategy Study On Business Of FM Zhongshan Company

Sanitary ware industry has been through a rapid growth from introduction to development in China.FM Zhongshan company was the only company invested in 2005 by FM in California,US.The purpose of the investment was to supply products and services locally to international brand customer(for instance,Kohler,American Standard,Roca,Duravit)that have manufacturing plant in China.With the fast growing of local competitors in recent years,the competition becomes more and more fierce.Orders of FM from brand customers are becoming less and less.FM Zhongshan's orders and sales numbers decreased accordingly.FM Zhongshan need to study and analysis the business growth strategy for future enterprise operation.This article studied the up-to-date and trending of population,politics,economy,law,market volume and product technology.Then an analysis of threats from competitors,substitute,new entrants and bargaining power of customers and suppliers were done through Porter's five forces model.As a result of the analysis,FM got to know the threats from the environments.Besides,the article also did an research of competitor's resources and capabilities,summarizes key factors of success and internal capabilities and resources.The last,the article summarized the market opportunities and threats,comparative advantages and shortcomings by means of SWOT.Taking into account of FM US's strategy and target,the article set forth the strategy of FM Zhongshan in both business level and functional level.To achieve a steady and continuous growth for FM Zhongshan,the analysis conclusion think that in business strategy the company need to establish an compatible organization that works well with the market and society;proactively compete for OEM customers and retail users in Asia-pacific market;in functional level,FM Zhongshan should provide similar or better products and services through design and service improvement;lower the cost of products through design perfection,supply chain management,production management,quality control;consider expanding the product portfolio,production capacity,market share and sales through acquisition.