Research On Developing Strategy Of Yantai Hongyu Packing Co., Ltd

As a supporting sector to the tobacco industry, which is a pillar industry for our national economy, tobacco packing industry has witnessed significant improvement in terms of industry scale and technical level in recent years with China's further reform and opening to the outside world, and the rapid development of its national economy. However, in faced of the ever-opening domestic market and changing international industry policies, China's tobacco industry is experiencing a series of changes, which, in turn, have brought deep influence over the tobacco packing industry. Yantai Hongyu Packing Products Company is a professional manufacturer of tobacco packings. It is of vital significance for the strategic planning of a complete system for the company to maintain and strengthen its strangths in the ever-changing market environment, to avoid the threat from changes with policy environment between various industries, and finally to build up its own competitive edges and further expand its market position.Embarking on the analysis over internal and external environments of Hongyu company, this article has conducted a systematic study on its development strategy by making a sufficient use of the modern strategy management theory. PEST model is employed for a detailed analysis over the external environment of the industry. Comparison of competitiveness of competitors has been made with competitory factor matrix while value chain method is adopted for an in-depth analysis into the resources and capabilities of the said company. Comments are delivered in the meantime over the opportunities, threat, its strengths and weaknesses that the company is facing with by using analysis matrix of internal and external environments of the enterprise, together with analytic hierarchy process (AHP). SWOT analysis approach is used to find out the alternative strategic scheme for the company. The final method adopted is quantitative strategic matrix assessment, which has offered the company with its strategic orientation and recommendations on how to secure its strategic implementation as well.