| Rongchang County seats on the Chongqing-Chengdu economy zone, the western part of Chongqing. It owns a population of 810,000. The GDP of the county is 5 billion RMB in 2004, which means the industry is in the beginning of rapid development period. In the coming 10 years, the high speed development of Rongchang industry is critical to achieve the goal of "Rich the People and Strengthen the County". The paper researched the problems of Rongchang industry and economy according to the theory of enterprise strategic management, which contained theory explorations, as well as practical meaning. The paper analyzed the primary external environmental factors which influenced Rongchang industry development from both the whole and moderate point of view and held that Rongchang industry was faced the rare opportunities for progress, such as China economy globalization, new pattern industrialization, exploitation of western part and industrial configuration adjusting of Chongqing etc. Meanwhile, the county also faced the challenge of market competition. The article analyzed the primary internal factors affecting Rongchang industrial development according to the county's environmental conditions and major enterprises'internal conditions. The results indicate that Rongchang developed rapidly in recent years, but its industrial base was weak and it had many traditional products, thus it lacks marketing competitiveness. On the basis of analysis about internal and external factors, some important methods from enterprises'strategic management are adopted , such as EFE matrix, IFE matrix and CPM etc., to evaluate the external and internal factors of Rongchang industrial development, which paved the way for the further strategic analysis and decision-making. Through strategic matching of Rongchang industrial development by TOWS matrix and strategic analyzing and choosing, the general principals of Rongchang industrial development were confirmed: To stress characteristics of Rongchang and make great progress in development. The six gerneral policise of Rongchang industry development were: 1. Optimize the environment and increase the investment; 2. Enliven the municipal government owned enterprises by the "three-reform and one-reinforcement"; 3. Rebuild traditional industry relying on the modern technology; 4. Make good use of the superiority in livestock husbandry technology; 5. Grasp the emphases; 6. Lead by the market. The six strategic targets were: 1. Keep the gross developing in high speed; 2. Make the foundation by large investment; 3. Improve the quality of enterprises obviously; 4. Stress the characteristic; 5. Train a series of skeleton enterprises; 6. Form industrial dense zone. The five key pionts were: 1. Develop medicine and veterinary industry in preference; 2. Pay more attention to develop agricultural byproducts processing industry; 3. Develop and strengthen the mechanical manufacture; 4. Do efforts to develop building materials and energetic industry; 5. Accelerate the development of medicine chemical industry. The six strategic measures were: 1. Improve the environment; 2. Bring in capital and unite internal counterpart; 3. Promote the enterprises by technology; 4. Outstanding enterprises lead the industry, 5. Name brands compete with each other; 6. Attach importance to persons with ability in enterprises. |