S Company’s Competitive Strategy Of Engine Components

Automobile industry is one of the important pillar industries of China’s economy.After decades of rapid development,China has become the world’s largest automobile production and marketing country.The prosperity of automobile market also drives the vigorous development of auto parts industry.In 2021,the output value of Auto parts in China has exceeded 5 trillion yuan.In the 1990 s,a number of foreign-funded enterprises with early development began to enter China one after another.Relying on advanced technology,excellent product quality and excellent service attitude,they quickly seized the Chinese market and made huge profits.However,in recent years,with the improvement of the knowledge level and production technology capacity of domestic R＆D personnel,domestic parts enterprises have risen rapidly.Their products not only occupy a place in domestic OEMs,but also infiltrate into joint ventures.It has seized the market of foreign parts enterprises,and the industry competition environment is becoming more and more fierce.S Company is a foreign-funded enterprise engaged in the research and development,production,sales and after-sales service of auto parts.In the era of constant change,fierce competition and fierce competition in the automobile industry,it is the key to maintain the long-term steady development of the enterprise to distinguish the market environment,understand the status of competitors,find the right enterprise positioning,and formulate the competitive strategy suitable for the development of S company.At first,this paper expounds the concept of the theory of competitive strategy,and then to S company as the research object,using PEST analysis method,from the political,economic,social,technical,four dimensions of S company’s external macro environment are analyzed,and concluded that at present,we still have great development potential in China’s automobile industry,the market prospects for stability in the positive,Macro environment is conducive to the continued development of S Company;Secondly,Porter’s five Forces model is used to analyze the competitive environment of S Company,and it is concluded that in the current market,customers have strong bargaining power,suppliers have weak bargaining power,potential entrants in the industry are less threatening,and potential product substitutes are less.However,S Company faces multi-angle competition from foreign and local rivals with different characteristics,and the traditional engine industry is suffering from the impact of new energy market,which intensifies the market competition degree.Then it analyzes the internal environment of S Company,analyzes the company’s current operating status,resources and capabilities,and obtains the company’s core values and advantages.Then according to the characteristics and applicable conditions of the three competitive strategies,the competitive strategy suitable for S company is cost leadership strategy.The specific measures of S company’s cost leadership strategy are to control raw material cost,optimize supplier strategy,optimize operation cost,and optimize enterprise process and business outsourcing.Finally,some measures are taken to ensure the full and effective implementation of the strategy,such as rational allocation of resources,optimization of organizational structure,construction of talent team,improvement of reward mechanism and strengthening of enterprise culture construction.The research content of this paper has reference significance for the industry with high technical requirements,high market competition intensity and few potential entrants.However,it is also necessary to know that the market is not a constant layer,and the competitive environment is also ever-changing.Therefore,enterprises need to pay close attention to the changes of competitors,grasp the industry dynamics and update their competitive strategies while developing themselves,so as to maintain sustainable competitiveness in the industry.