The Research Of M Company China Market Development Strategy

In the past 30 years,with the quick development of China economy,the China industry products manufacturing capability is growing rapidly.As an important industry product,valves are widely used in different fields.With the enhancement of China valve manufacturing level,the gaps between local made and imported valves are shrinking.The commodity valves market has been saturated,and the excess capacity and slowdown in demand makes the valve market filled with fierce competition.In contrast,in China valve industry the tradition sale model with the aim of making the deal is still popular,over-focus on the pricing competition makes neither valve manufacturers nor distributors able to concentrate on the quality and service.The end user is urgently needing a new business model to meet their requirements on valves,and improve their procurement efficiency.In this study,we use M company as an example to conduct a detailed research on their business development in China through the new business model.Firstly,this article introduces the valve industry background,and the difficulties in the valves sales,then bring up the study significance and purpose.Secondly,it briefly introduces the referred theories.Then it analyzes M company business model together with the upstream suppliers and the downstream buyers.Combining with the analysis of the macro environments and the valve industry competition,we realize the M company business model can better meet customers’ requirement than traditional business model.In the end,through STP analysis,we manage to help M company find the target customer and make the business development strategy accordingly.Through this study,it can help M company to identify the market entry point and direction during the preliminary stage of China valve market development,and bring up the market development differentiation strategy according to M company’s strength brought along by the business model and the current market situation.The study provides the reference for M company to achieve its market goal in China,meanwhile inspires China valve industry to improve the supply chain management efficiency.