Research On The Competition Strategy Of Tool Storage Business Of GL Company

Tool storage products as a subdivision of the hardware products field,have been widely used in manufacturing,processing,maintenance and other industries,and in the daily use of households as well.As a storage and worktable for use in various operations,transportation,straightening tools and accessories,it can improve assembly and maintenance efficiency,and beautify the working environment.In 2020,the global market scale of tool storage is about 8billion US dollars,and China is the main export production base,accounting for about 30% of the world’s total sales.GL company was established in 1993,located at Zhongshan city,Guangdong Province.GL is an export-oriented enterprise specializing in the production of tool storage.The world today is undergoing profound changes unseen in a century.Since the 2008 financial crisis,the world economy has been increasingly contradictory;unilateralism and trade protectionism in some Western countries tends to rise again,which is a shock to economic globalization.After the outbreak of COVID-19 in December 2019,this trend is likely to be further intensified.In the face of an increasingly complicated international situation,export-oriented enterprises are facing more risks and difficulties.How to improve and keep their leading advantages has become a difficult problem for them.For an enterprise,whether the business competition strategy is reasonable has become the most critical factor for its sustainable growth and healthy development.Therefore,in the complex and changeable market environment,it has become an important magic weapon for enterprises to obtain timely competitive advantages that create reasonable business competition strategy.GL company is currently facing a difficult situation of fierce competition and declining profits.This thesis takes GL Company as the research object,mainly uses literature research,survey analysis methods,quantitative analysis,qualitative analysis and other research methods,using PEST and Michael Porter’s Five Forces Model,IEF and EFE matrices to analysis internal and external environmental changes.The thesis will find out the key factors affecting the business development of tool storage,and carry out quantitative and qualitative analysis,quantify the internal advantages and disadvantages.A SWOT matrix was used to combine and analyze the opportunities,threats,strengths and weaknesses faced by GL Company,and to develop alternative strategies that could be adopted.Based on GL business objectives,using the QSPM matrix to infer the best tool storage business competition strategy-the differentiation strategy.Then it puts forward four implementation paths: product differentiation,service differentiation,channel differentiation and brand differentiation.Then from the organization structure,human resources,information platform,enterprise culture lists the safeguard measures.Finally,the plan can be implemented through four steps: strategy decoding,execution tracking,evaluation feedback,adjustment,and correction.It is hoped that the research of this thesis can help GL Company improve the current predicament and help it maintain a leading position in the tool storage business industry.