Research On The Competitive Strategy Of Auto Parts Business Of FH Company

After more than 30 years of rapid development,China’s auto industry has built a complete industrial system and made important contributions to the growth of China’s national economy.Auto parts are the most important foundation for the development of the auto industry.The national development strategy represented by "Made in China 2025" and "New Energy Vehicle Industry Development Plan" strongly supports the development of domestic auto parts industry.Domestic companies of auto parts can take advantage of this situation to increase the research and development of core auto parts,innovation and achieve industrialization landing,and continue to promote industrial upgrading.FH Company is a national high-tech enterprise that develops,produces and sells auto parts.In recent years,affected by the epidemic issue,the raw material and labor costs of this company have increased significantly,and the development of auto parts business has been adversely affected.At the same time,the company is confronted with problems and challenges such as insufficient technological innovation and unclear competitive strategy,and the market competitiveness of auto parts business has significantly went down.Because of this,it is urgent for FH Company to develop a suitable competitive strategy for its auto parts business in order to continuously enhance its market competitiveness.Firstly,This thesis analyzes the external macro environment of FH Company’s auto parts business by using PEST tool and seeks out the external opportunities and threats which the company encountered;secondly,analyzes the industry environment of FH Company’s auto parts business by using Porter’s five forces model and CPM matrix;again,by analyzing the internal environment of FH Company,the internal strengths and weaknesses of the company are derived;subsequently,uses SWOT tool to match and combine the external chances and threats,internal advantages and disadvantages of the company,and formulate the alternative strategies of the company;finally,the QSPM matrix is used to decide the alternative strategies,and the optimal strategy for the auto parts business of FH Company is the differentiation strategy.In order to ensure the smooth implementation of the differentiation strategy,the company makes a detailed strategy implementation plan and safeguards,and uses performance tools such as the balanced scorecard to dynamically control the strategy implementation process.The implementation of these measures has advanced the development of FH Company’s auto parts business,ensuring that the company remains consistently competitive in the market and becomes a leader in the automotive parts components market.The research results of this thesis not only clarify the development direction for FH Company’s auto parts business and promote the healthy development of the auto parts business,but also provide a reference for the development of other companies in the same industry.