Research On Competition Strategy Of Yantai KL Company

Since the reform and opening up,China’s automobile industry has made remarkable achievements.In the process of automobile industry development,automobile parts industry has also made remarkable achievements.However,after more than 20 years of continuous growth,China’s automobile production and sales volume experienced negative growth for the first time in 2018,and the same was true in 2019,which marked the beginning of a cold winter period in the history of the automobile industry.The auto parts industry is even worse.How to maintain the competitive advantage in the severe market environment has become a major issue for many auto parts manufacturers.Based on the above background,it becomes more and more important to carry out research on corporate strategy and competitive strategy in order to adapt to the new trends.This paper takes the competitive strategy of Yantai KL company as the research object.It applies many courses learned in the MBA class,such as:the courses of management,strategic management,competitive strategy,corporate operation management,human resource management,financial management.And it adopts the methods of literature research,case study,comparative study,survey research method and so on.Firstly,this paper reviews the concept of strategy and competitive strategy,relevant theories and the research status of competitive strategy in automobile industry.Then,PEST model is used to analyze the macro environment of Yantai KL company.Porter’s five forces model is used to analyze the bargaining power of suppliers,customers,threats from existing competitors,potential competitors and substitutes.Combined with interviews and questionnaires,the EFE matrix is used to evaluate the external key factors.Secondly,the internal resources and capabilities of Yantai KL company are analyzed.Resources include:parent company resources,human resources,financial resources,brand resources,etc.;Capabilities include:R&D and continuous improvement capabilities,manufacturing capabilities,talent training capabilities,operational capabilities,information management capabilities,market development capabilities,etc.Combined with interviews and questionnaires,the IFE matrix is used to evaluate the internal key factors.Thirdly,the article analyzes the internal and external environment,resources and capabilities.Then the SWOT model is used to analyze the internal strengths and weaknesses of Yantai KL company,as well as the external opportunities and threats.And it is concluded that Yantai KL company should adopt expansionary strategy at present.Combined with the company’s strategic positioning and objectives and based on the feasibility analysis of three alternative competitive strategies,the QSPM matrix is used to select the low-cost competitive strategy as the competitive strategy of Yantai KL company in the next 3-5 years.At last,this paper discusses the implementation of low-cost competition strategy from the perspectives of material cost control,labor cost control and quality cost control.At the same time,it also puts forward the safeguard measures for the implementation of competitive strategy from the perspectives of cultural guarantee,organization and personnel guarantee,system guarantee,financial guarantee and information guarantee.Through the above analysis and demonstration,the purpose of this paper is not only to help Yantai KL company to make effective competitive strategic decisions,but also to provide reference for the same industry enterprises.