Study On The Competitive Strategy Of China Market For VAULT Company

POS system once referred to a simple counter with cash register.The bar code was first introduced with a computer in the 1970 s,and then graphical interface appeared in the 1980 s and online ordering in the 1990 s.Thanks to the application of tablet and mobile payment in the 21 st century,the changing speed of POS system is further accelerated.With the rapid development of technology and the improvement of consumer experience,the demand for POS systems in the world is growingly increased.For one hand,the demand of upgrading traditional POS systems is becoming more and more pressed;for the other hand,the emerging consumer markets,especially for the leading country China,have brought huge business opportunities.Under the context of economic globalization,the governments worldwide strongly encourage enterprises to go abroad to participate in international competition from the policy level,and companies can maximize their benefits from the optimal allocation of resources,while joining the exploration and construction of China market can be the best opportunity of the modern era.VAULT Company is a small America enterprise specializing in the design,production and sale of hardware solutions for POS system.It was founded by James,a veteran of the POS industry for more than 20 years,and VAULT Company has become a leading manufacturer for tablet enclosures,stands and brackets.The company makes full utilization of its extensive industry knowledge and rapid R&D and manufacturing capabilities to help customers provide a complete set of innovative hardware solution for POS system.Tablet PCs that have already been equipped with POS systems include Apple iPad,Samsung Tab,Dell Latitude and Microsoft Surface.Therefore,with the company’s competitive advantages and the POS market tendency,VAULT Company has entered the fast lane for business growing.However,the sharp growing in product orders encounters the severe output issue related to VAULT’s in-house manufacturing facilities,plus the limitations of production capacity from local suppliers in USA.Besides,POS system can be replaced or upgraded followingthe quick development of tablet technology,and competitors continue to launch new products with genius design.Furthermore,the popularity of mobile payment leads to huge rising demand of smart POS systems.All of above have prompted VAULT Company to try to look into China market and transform itself into an international business unit driving the maximum of the company advantages.Basing on the relevant theories of enterprise strategy management and competitive strategy,along with abundant working practice,this paper summarizes the current status of VAULT Company in China market and lists the problems facing under such competition process.It uses PEST and Five Forces model analysis tools to gain a comprehensive understanding of the external environment to the company,including the relationship of Sino-US trade war and the industry level of application market for POS system.Upon reviewing VAULT Company’s internal resources and capabilities,the report also combs the key factors of internal environment to the company.Using EFE and IFE analysis methods,the existing strengths weaknesses opportunities and threats for VAULT Company are well identified with quantitative evaluation in the process of developing the China market.After matching the critical factors of internal and external environment through SWOT Matrix,the company finds the proposal direction of Differentiation as best answer with the analysis of powerful tool QSPM.It also points out that the choice of enterprise competitive strategy should be dynamic,which calls for adjustment of competitive strategy for VAULT Company according to the change of environment at different stages of the development in China market.Finally,a few critical safeguard measures are proposed to put forward,such as the aspects of organizational structure,human resource,risk and data management and others,so as to assure the successful implementation of the Differentiation strategy for VAULT Company in China market.