Research On SMEs' Industry Selection Model Based On Competitive Intelligence Methods

As an important part of the national economy, China's Small and Medium Enterprises play a very important role in the area of promoting economic prosperity, advancing innovation, expanding exports and increasing employment, etc. By the end of 2006, the China's Small and Medium Enterprises account for over 99% in the nation's total number of enterprises, at the same time, SMEs create the ultimate value of the products and services of Gross Domestic Product to around 60%. However, according to statistics from related departments, SMEs' lives are very short, 68% of these enterprises could last no more than five years. The SMEs are difficult to develop lastly, one of essential reason is the enterprises have not carried an industry evaluation before entering the industry. And now the research in this area in domestic is very few.This paper attempts to use some of the basic methods of Competitive Intelligence to build an industry evaluation model to help SMEs to select the industries. The SMEs can use this model to evaluate the potential industry so that the decision-making are more scientific and rational. In this model, firstly, some macro-methods, such as PEST, SWOT etc., are integrated used to build a basic evaluation framework, the latter part, AHP method and multi-level grey quantitative analysis method are used to do the specific evaluation and obtain a quantitative evaluation mark.In the final part of the paper, through a case to do the empirical analysis of model and show that the model has a better effect of evaluation and easy operability.