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Study on Development Strategy of Sanmenxia Jiuhua Textile

Author: GaoChangHong
Tutor: ZhangMingZheng
School: Henan University
Course: Business Administration
Keywords: Jiuhua textile development strategy strategic choice implementation of the strategy
CLC: F272
Type: Master's thesis
Year: 2012
Downloads: 28
Quote: 0
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Abstract


Cotton textile industry, the national traditional pillar industry, as well as a highly competitiveindustry, currently faces up with the industrial cut-throat competition, unfavorable trade policy, andunprecedented domestic and international market environment, furthermore cotton textile enterprisesprevalence of serious "crisis of survival" and "strategic crisis". With the further development of economicglobalization, Chinese central government clearly stated the plan of "Supporting to Accelerate a number ofProvisions of the Economic Zone in the Central China", therefore the development of the Jiuhua TextileGroup significant opportunities for development, simultaneously, the company is faced with severechallenges. In order to respond to internal and external environment changes, and to improve theircompetitive advantage, companies must develop a feasible development strategy and effectiveimplementation and control, it could grasp their own destiny in the increasingly fierce market competition.Basing on researching and analyzing the internal and external environment of Jiuhua TextileGroup, the paper summarizes the opportunities and threats of the external environment and the strengthsand weaknesses of the internal conditions. Thus the paper present the development strategy of the JiuhuaTextile Company. The key to the strategy is to find or create a more effective integration of enterpriseresource elements of the model, to enhance the value of management, thereby improving the managementefficiency of enterprises. Jiuhua Textile Company should take a low-cost strategy and differentiationstrategy, make full use of these advantages, try to realize the brand strategy. Then, the company couldestablish a unique competitive advantage and ultimately become stronger.In this paper, PEST analysis, strategic analysis of five competitive forces model, the EFE/theIFE analysis, SWOT analysis model tool are employed to develop the strategic objectives of the program.Through the implementation of staff restructuring and structural adjustment, integration of resources,enhance the competitiveness of the textile industry to exit the main city, information and technologicaltransformation, increase efficiency with less stuff and other aspects of reform, the company could developinto China cotton textile industry leader by the implementation of the strategic measures.

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