Research On Competitive Strategy Of Faw Casting Co.,Ltd Company

FAW Foundry Co.,Ltd.is a subsidiary company invested and constructed by China FAW Foundry Co.,Ltd.The product types of FAW Foundry Co.,Ltd.include castings and forgings required for automobile cylinder blocks,cylinder heads,and body parts.With the development of China’s automobile industry and the rise of domestic brands in recent years,the competition between domestic automobile brands and joint venture brands is extremely fierce,and there is a situation of contention among a hundred schools of thought in the automobile market.In this context,FAW Group proposed a comprehensive market-oriented reform,and FAW Foundry Co.,Ltd.actively responded to the group’s call and invested in the market-oriented reform.After the implementation of market-oriented reforms,the foundry company’s competitors in the internal market of FAW Group have increased year by year.For the company’s profit needs and long-term development,FAW Foundry Co.,Ltd.has vigorously explored the external market.Therefore,FAW Foundry Co.,Ltd.urgently needs to formulate appropriate strategies to enhance its competitive advantage.The development of FAW Foundry Co.,Ltd.is still faced with many problems such as low profitability,insufficient product pricing competitiveness,and insufficient talent pool.This article combines Porter’s five forces model and PEST analysis model to study the overall environment of the parts foundry industry and the company’s internal state where FAW Foundry Co.,Ltd.is located.From the perspective of external factors,the national economic environment remains stable under the influence of the epidemic.In addition,the country has vigorously promoted the development of the manufacturing industry in the "14th Five-Year Plan".For the foundry industry,environmental protection requirements are getting higher and higher,and the production equipment used by some small and medium-sized foundry companies does not meet the current national environmental protection requirements for foundry enterprises,resulting in production suspension and production restrictions,resulting in a large gap in market demand..From the perspective of the company’s internal environment,FAW Foundry Co.,Ltd.has a long history of development,has a good brand foundation and profound cultural heritage,and has a high reputation in the foundry industry.The company’s research and development capabilities,equipment,water products and production capabilities are in the first echelon in the industry.The company takes "green casting level,brand influence,high quality and high production capacity" as its core competitiveness.In the context of market-oriented reform,FAW Foundry Co.,Ltd.needs to join the competition in the external market,continue to explore the market,find more customer groups,and increase profit income in addition to the entry of external enterprises into the FAW Group to divide the market.Facing the competitive environment of "internal and external troubles",FAW Foundry Co.,Ltd.formulated a set of cost leadership strategy through the analysis of the current situation of the foundry industry and the actual situation within the company.By reducing procurement costs,reducing personnel costs,and reducing customer costs,the total cost can be reduced.And provide a series of measures from the company’s production technology,quality,price and personnel to ensure that the cost leadership strategy can be successfully implemented,so that it can follow the development pace of the automobile industry,create a competitive advantage,and compete with many automobile casting companies.Seize the opportunity to step up to a new level smoothly.