The Study Of Development Strategy In BHS Co., Ltd.

For a long time,the government has treated the automobile industry as one of the pillar industries of China,and with several encouraging policies,the growth of the automobile industry has been highly acknowledged.At the same time,the government has promoted the new energy strategy as the national strategy,and pushes the development of the new energy vehicles strongly with a few preferential policies,which resulted the new energy vehicle booming in China recently.It also leads to a new incremental point of automobile industry,that attracts almost all car manufacturers to be part of the game.The current China passenger car market has developed for a few years with a high speed,and now,it has entered a stable development phase.For many years,the joint-venture automobile manufacturers occupied a big portion of the passenger car market with its high quality products and the well-known reputation.But now,they are facing a huge impact from local automobile manufacturers.The cost issue is becoming the main drawback in the competition with local manufacturers.At the same time,the local automobile manufacturers have finished their primitive accumulation of the capitals as well as the business integration.After many years of rude development,they start to realize that the low cost and low quality shall not be the way they shall continue,the companies are now focusing on increasing the quality and cost performance,in order to attract more end users,and expect this will reposition the company brand in the public view.With this background,as a professional climate control unit manufacturer company,who has also Germany genes,BHS developed very fast in the past 10 years in China together with the joint-venture companies.But just in the last years,the company feels itself of lacking motivation of development,the company has less local customers,the competitions are stronger than before and the profit impacts are getting bigger.Apparently,the current development strategy of the company is no more fit to the market’s new requirements and the changes,the company are desperately to find new development strategy and profitable points.This paper is working with a list of development strategy theories.Basing on the history and current situation of the company,we analyze the internal and external factors of it,and try to find out the proper development strategy and competition strategy.Eventually,this paper gives the related development methods/suggestions,by expecting those advices might be taken by the decision makers.The main body of the paper are divided into 4 big parts.The first part(chapter 2)is mainly introducing the related/used theory in the paper while the second part(chapter 3)introduces the basic information/challengers of the company BHS.The third part(chapter 4 and 5)of this paper is the analysis of the internal and external factors of the company,from which the company strength,weakness,opportunity as well as the threat will be identified.The forth part(chapter 6 and 7)will use the SWOT analysis model to derive the company level strategy and the competition strategy,and in chapter 7,the advices will be presented for the new strategy.