Research On The Competition Strategy Of Faucet Business Of Lota Co.,Ltd.

With the global economy and society’s sustainable development,the progress of science and technology,has led to a continual rise in people’s living standards,while simultaneously transforming consumer consumption ideas and their needs for quality of life are also constantly improving,gradually paying attention to the kitchen and bathroom decoration and sanitary ware supporting and put forward more needs and suggestions,bathroom accessories industry market demand is gradually expanding,the faucet business market prospects are favorable.Lota Group is a trinity of product development,production,and marketing group enterprises,the main business of high-grade faucets,bathroom accessories,valve fittings,locks,and other types of bathroom and home products.Since the China-US trade war and COVID-19 epidemic,ability to highlight advantages in pandemic prevention and control in China,creating advantages for enterprises to resume work and production,which has led to a sharp increase in foreign trade orders of large enterprises in the past two years.With the change in the general environment,Lota’s problems are increasingly prominent.Based on this background,the importance of how Lota can sustain its industry leading position in the faucet business has become a research subject that the company must confront.Quantitatively analyzing both the internal and external environment of Lota Company,this report employed a variety of methods,such as PEST analysis,CPM competitive profile matrix,Porter’s Five Forces analysis,EFE’s external factor evaluation matrix,and IFE’s internal factor evaluation matrix.Quantitative analysis revealed that Lota’s faucet business is facing a plethora of threats with more advantages and less opportunities with fewer disadvantages,as evidenced by the weight score of internal and external key factors,which was 2.59 and 2.45 respectively.By utilizing the SWOT matrix to identify opportunities,threats,strengths and weaknesses,and three alternative strategies are obtained,which are cost leadership strategy,differentiation strategy and centralization strategy;using the QSPM matrix to prefer the three alternative strategies,of which the cost leadership strategy scored the highest,6.83 points,the results clearly reflect that the cost leadership strategy is more attractive than the differentiation strategy than the concentration strategy,so Lota prefers the cost leadership strategy to be implemented to maintain the sustainable competitive advantage of the faucet business.To guarantee the successful execution of “cost leadership strategy”,the following steps must be taken: firstly,the implementation measures of the strategy are proposed;then,the corresponding implementation measures are suggested;and finally,the strategic control measures are proposed.All of this can be accomplished through the strategic implementation measures,strategic guarantee,and strategic control measures to achieve the cost leadership strategy of Lota’s faucet business,to help through strategic implementation measures,strategic security measures and strategic risk control measures to achieve the cost leadership strategy of Lota’s faucet business,to help achieve the ultimate cost target,so that Lota maintain a sustainable competitive advantage.