Competitive Strategies to Increase the Performance of the Automotive Wheel Business A Case Study of PSMA Co., Ltd.

Abstract

The objective of this study is to investigate the internal and external environmental factors which cause the operating results to decrease within the organization. The research study the competitive strategy of the business and present alternatives for increasing commercial results utilizing analytical framework, marketing mix theory (7Ps), the Five Forces Model, the Value Chain Model and data collected through organization interviews. The data from interviews with company executives, salesman and customers use to analyze the environmental factors via the PESTEL tool to evaluate the strengths, weaknesses, opportunities and obstacles of the organization (SWOT).

The results showed sales over the past two-year period (2018 - 2019) continuously decreased, especially in the year 2019. The decrease was primarily due to the external operating environment at the national level, two main negative factors were market competition efficiency and restricting regulations within the industry. The research examine the external factors of the industrial environment via market competition efficiencies compared to the organization including the manufacture and import of product from China, it also study the internal environment of the business via product mix, sales, and marketing, Alternative strategies will be proposed for the organizational to increase growth. Two options present to the management focus on changing the product development strategy and market development strategy.