Research On The Competitive Strategy Of Huapeng Company

Huapeng Company is a wholly-owned subsidiary of SG Electric Power Group,which takes informatization construction of electric power industry as its main business.The company specializes in research,development and manufacturing of information and communication products for electric power industry and provides installation,operation and maintenance consulting services.Through participating in the 12th Five-Year Plan of Electric Power Information and supporting the information construction of SG Electric Power Group in an all-round way,Huapeng Company has been developing rapidly in the past ten years.Its main business income has grown at an average annual rate of more than 20%,and it has rapidly grown into a pillar enterprise in the information construction of SG Electric Power Group.It has developed from a small company to a medium-sized and large company.The headquarters of the group attaches great importance to the development of the information and communication industry,and has a high expectation for the company.According to the growth trend over the years,it is expected to reach a profit target of 500 million yuan in 2018.However,as China’s macro-economy enters the "new normal",SG Power Group’s information investment tends to be stable after large-scale construction.Meanwhile,with the market further open,competition intensifying,the cost of production factors rising,the company’s development encounters difficulties.Business growth is weak and the target is hard to achieve.Huapeng Company is the pioneer and leader in the field of power informatization.After 20 years in the industry,it has accumulated high-quality talents and customer resources,but its market performance in recent two years is contrary to it.On the surface,in order to seize the market,the company blindly participates in low-price competition and even introduces project outsourcing to reduce cost at the expense of product quality,which has been constantly complained and put itself off the stride in the chaos.But is there a deeper reason for this?Does the management have no other alternatives in decision making?This paper,starting with the company’s external environment and internal conditions,will combine the theory of strategic management and adopt appropriate analysis method to analyze the problems with its operation.It also puts forward reasonable development strategy and strategic implementation safeguard measures in order to find the direction for the company’s sustainable development.The article is divided into six parts.The first chapter is an introduction,which introduces the background of the topic,the scope of the research and the related theoretical basis.Chapter two is the analysis of the current situation and problems of Huapeng Company.Chapter three is the external environment analysis of Huapeng Company,PEST analysis of the macro environment and five-force model analysis of the competitive environment.Chapter four is the internal condition analysis of Huapeng Company,introducing the general situation and typical business characteristics of it.RBV theory is adopted to analyze the company’s core resources and value chain theory is also used to analyze its main capabilities.In the fifth chapter,SWOT analysis is carried out.Through the feasibility analysis of total cost leading strategy,differentiation strategy and centralization strategy,Huapeng Company’s competitive strategy with differentiation as the main strategy is finally established.Finally,the safeguard measures for the implementation of the strategy are put forward.