Study On Development Strategy Of Tianjin Tanggu Sino-French Water Supply Co., Ltd

Water industry generally referred to as the water sector, mainly refers to the residents and enterprises to meet production and domestic water demand for industrial activities. Tianjin Tanggu Sino-French Water Supply Co., Ltd. (hereinafter referred to as the Tanggu Sino-French) belonging to the water industry, to cover water, so in the beginning of the article, it is necessary to introduce its own water features, that is, universal service, public welfare, Regional monopoly, network externalities, the stability of supply and demand volatility, investment-specific. Above water introduced several features, it should be noted that because of this paper's main water supply development strategy, so water on the nature of the presentation focused on the water supply industry.Because of geographical reasons for separation, the water supply companies will not compete with each other to form a trend, this article discusses the structure of the water industry competition, mainly focus on from the Tanggu Sino-French trade relations between the competitive angle of the main evaluation of the water industry structure, the main of Administration ,the foreign Water group, the state-owned water company.Since the 1980s, the emergence of the global water industry "market" and "privatization" wave, at this time China has launched a water market reform, a group of world-class water into the giant Chinese joint venture plant, new water supply and the concept of service-oriented approach, so that the people gradually know the new water industry. In the face of fast changes in the tide of reform, the water industry will comply with the state's macroeconomic trends, under the security system and to promote market-oriented reforms, sustained, healthy and rapid development.Tanggu Sino-France on March 22, 2005 was formally established by Sino French Water Development Company Limited ("SFWD") and Tianjin Tanggu Urban Construction Investment Company formed a joint venture Sino-foreign cooperative enterprises, which grew out of Tianjin Tanggu Water Company. Joint venture and restructuring, the original water supply company to provide development opportunities for its development, cooperation can make good use of the former state-owned water company's equipment, human resources, management experience and good reputation of the company to achieve a smooth transition. But as far as I observe, in the seemingly calm behind the business environment, there is a greater crisis, such as: narrow field of vision, lack of insight into the strategic capability; no a common target ; too much level management, tight control, resulting in efficiency Low; the shortage of human resources, communication disadvantages cause the increase of the coordination costs; the loss of customer resources, a lack of effective measures to deal with ,these inadequacies in the Tanggu Sino-France will soon fall into a competitive disadvantage. How to deal with imminent dangers, it is the purpose of this paper.From the following macro environment, micro-environment, internal environment and the competitiveness of the four aspects of the situation of the Tanggu Sino-French analysis, in order to find ways to deal with a critical situation.Macro-environment for micro-enterprises and environmental factors have a greater influence of objective factors combined, mainly including the legal and political environment, economic environment, technology environment, social and cultural environment. Through the use of macro-analysis of the model analysis ,PEST, shows that the macroeconomic environment in all aspects of the factors Tanggu Sino-French in the region to promote development and the role of promotion, and Tanggu Sino-France in the macro environment facing development opportunities.But where the micro-environment is not optimistic. The so-called micro-enterprises environment means of production, supply, marketing, personnel, financial, material, information, such as the time of the direct relationship between the environment, which is deciding the survival and development of the basic environment ,in which the most important thing is the relationship with customers , Suppliers, competitors, alternative and allies, the following major from suppliers, major customers and competitors analysis of the three areas. Tanggu Sino-French`s supplier of raw materials is Tanggu Water Authority; key customers include eight major users, their needs determine the source of profit for the Tanggu Sino-France, and even has a bearing on the company's success or failure , it is vitally important for the development of Tanggu Sino-French.The Tanggu Sino-French has two rivals : Veolia Water Jinbin water works and Tianjin Economic-Technological Development Area Water Company, both of which have strong financial, technical and personnel strength, well-water technology, advanced equipment. The Tanggu Sino-French micro-environment, it is not difficult to see that the Tanggu Sino-French are facing a crisis, the supplier to the beginning of the downstream industry chain development, production and sale of Tanggu Sino-French substitute products; the top two large customers in eight major water users will move out to the the area of water supply controlled by own competitors; the growing strength of strong competitors, and even has been stronger than Tanggu Sion-France. At the micro-environment, Tanggu Sino-France is about to find itself in a very disadvantageous situation in competition.For the enterprise environment, the main purpose is to know their own businesses with a variety of conditions, resources and organizations, recognized in the industry's competitive position, strengths and weaknesses, which found that enterprises have the capacity and inadequate to determine the status of strategic enterprises, in order to lay the foundation for the development of corporate strategy. To assess Tanggu Sino-French internal resources and the ability mainly refer to the organization, financial resources, marketing, production capacity, research and development capability, human resources, the functions of system such as the seven aspects. From the results of the analysis can be seen Tanggu Sino-French internal efficiency is not high, rigid financial capacity, lack of the necessary means of marketing, lack of production capacity, a shortage of qualified personnel, research and development capability is limited, communication and information system problems, lack of flexibility in the face of a critical situation and at a competitive disadvantage.Porter believes that in every industry, there are five basic competitive forces, that is, potential entrants, substitutes, buyers, suppliers and competitors of the existing counter. We analysis Tanggu Sino-French competitiveness based on Porter's "five power" theory, it is not difficult to arrive at the enterprise is competitive in its own region due to natural monopoly industries. But it lacks the competition near its rule area surrounding regions. And hard to resist the threat of substitutes. With the increasingly fierce competition, its bargaining ability to users will decline further, the companies will face more severe competition. How to deal with this critical situation on the earth ?On the Verge of crack, under the new situation can not be separated from strategic positioning to reposition itself. Porter believes that the strategic positioning of strategic enterprises is the core content of corporate strategy, and the essence of competitive strategy is to establish a link between enterprises and environment. Internal resources and the ability to develop business strategies is corporate strategy`s base. According to the results of analysis to the Tanggu Sino-French external macro, micro-environment on the front of this article, combine with the advantages and resources and evaluate the competitiveness of enterprises, the use of SWOT analysis framework can conclud five strategic positions to develop of Tanggu Sino-French. Through strategic positioning, Tanggu identified the development direction and goals of Sino-French strategic, for example, the production capacity to deal with the shortage of production capacity expansion strategy, opening up new markets in rural water market development strategy, into the sewage treatment market diversification strategy, which break the disadvantage of the Tanggu Sino-French in the fierce competition and strategic development should be taken to deal with a critical situation, seek survival and development of business, and achieve the purpose of this paper. Implementation of the strategy is to the company's strategic plan into action, and then into the results. It should be noted, however, the implementation of the strategy, not only need support and cooperation of all parties come from inter and outer, but also need to implement appropriate safeguards to ensure the realization of strategic goals.