Study On Growth Strategic Research Of Chongqing Shida Company

Magnesium alloy is a new material in the 21st century, and its industry is a rising one in many investors' minds, attracting a lot of big companies' investments because of its comparative advantages against aluminum alloy. Chongqing Shida is one of the companies starting magnesium alloy die-casting early in China, it once became the image of magnesium alloy applications with great reputation and honors for its advantages in technology, technicians and pre-existence in this industry. But the truth now is that its reputation and honors do not equal marketing advantages, it's losing money for quite a long time due to limited marketing resources and channels, dispirited employees, facing serious crisis to develop even to survive. This paper starts analyzing Shida's opportunities and threats from its outer and inner surroundings, and raises a new developing strategy for Shida by combining with its inner resources to give it guidance on overcoming the barriers and decision-making. Aspects as followed are dissertated in the paper:(1)Analyzed from the whole industries, magnesium alloy industry is highly regarded by the government as a new industry in China, especially Shida's fugleman position in this industry gains many preferential policies supported by the government, which create a very good macroscopically environment. (2)Analyzed from the Five Threats respectively come from new comers, competitors, substitutes, suppliers and purchasers, magnesium alloy industry is growing well and normally with middling comprehensive threats, and the best opportunity to Shida is rooted in the market of magnesium alloy motorcycle components and accessories of A Group. (3)Analyzed from the internal resources of Shida in accordance with its VRIO and Baud Value Chain, its dominant capability lies in producing and developing magnesium alloy motorcycle products, then some superiority in magnesium alloy automobile products, and handle tools as the weakest one. (4)Analyzed from SWOT angles, Shida should carry on SO strategy to make its more profitable choice and to concentrate on what it is best at with the limited resources, being supported and guaranteed by its strategies on cost saving, technology innovation, HR, quality oriented and culture cultivation.