A Research On Operation Strategy Of YG Company

Chinese loader industry is an important component of Chinese construction machinery industry; and it has the earliest history of development. Now the loader industry is in the maturity period of development history, and the annual growth rate is stable. YG company has been established for thirty-eight years, and is one of the four earliest enterprises in industry. Because of the burden with heavy debt, it had to be reorganized now, and then it is in a critical turning period. It is a key issue to YG company that it should come into a new industry, or should continue to develop in the loader industry with fierce competition, and how to operate. Basing on the relevant strategic management theory, and using combinative method of macro and micro, qualitative and quantitative analysis, the paper studies the YG company systematically in order to find an optimal operation strategy.At first, the thesis uses PEST analytical method and Porter's five competitive forces model to analyze and evaluate YG company's macroscopic and industry environment. It draws the conclusion that YG company is facing opportunities to develop. For example, there is a good development trend of macro-environment at domestic and abroad; the political and legal environment has become increasingly standardized; and there is vigorous development in the equipment manufacturing industry. At the same time, it is facing threats, such as foreign competitors emerging in our country, technical requirements rising with having already joined WTO. Secondly, the thesis researches inside environment by further using inside resources and the value- chain theory, so we know that YG company has many advantages of a good brand, high-quality products and a mature sales network. On the other hand, there are many disadvantages of lagging management mechanism and low ability to develop new products. Thirdly, using SWOT and IE analysis matrix, the thesis studies the plans of operation strategy that YG company should be taken, and then using QSPM matrix to decide the centralization differentiation strategy is the optimal choice to YG company at present. Finally, the thesis makes the decision about operation purpose and strategic goals; then designs its implementation steps and measures, the security system of the strategic implementation in YG company.