Development Strategy Case Study Of Poultry Meat In LIUHE Group

With the development, the stockbreeding industry in our country develop greatly, and the meat , birds, egg yield ranks no 1 in the world. With continual development of economy and increase of average income of inhabitant, the requirement of meat, egg and milk produced by birds and livestock increases continuously. There is great potential in birds and livestock products market which bring great develop space in stockbreeding production. The stockbreeding industry already becomes an important support industry and economic development point in our rural industry and rural economy; with the development of meat demand and change of structure, the chicken product processing industry faces important development chance , but the facts that development time is short, the industry line is long, requiring a great amount of fund, the technical level is low, influence the healthy, quick development of chicken processing industry. The great foreground of the chicken processing industry poses a clear compassion with the depression of the industry. Especially , in February of 2004, China's agriculture department announced that bird flue found in China, the export of the birds was stopped by import country, except for Japan and Korea imported heated birds from China, the birds export was nearly stopped, which pose a negative influence chicken industry. From 2004 to 2006, the production quantity decreased for three years.LiuHe group, which developed late in chicken industry, realized great increase from 2004 to 2008. The slaughter factory increased from 8 to 52 and the chicken annual yield increased from 186,600 mt in 2004 to 1,050,000 in 2008. Annual production and sale quantity increased from 27%--79% which need serious study and consideration.LiuHe group was founded in 1995 which main business is feed production, food processing, breeder livestock and chicken breeding, biology pharmacy etc. Currently, group's annual production capacity is 11,000,000 mt and daily slaughter capacity is 2,370,000. The group produces near 1 billion baby chick. Liu He brand feed was awarded with China's famous brand and Shandong famous brand. Liu he brand was awarded with China's far famed brand and Qingdao well known brand. The group was awarded China's important top company, China's 500 top company, National Food reassurance company, the forcing brand in national meat industry.Liuhe chicken was founded in 1997 commencing with purchasing Pingyi coldstorage company. In 2000, the group purchased 2nd chicken slaughter factory: Linyi Liu He cold storage factory. Until 2004, Liuhe meat department developed stably with annual production capacity is less than 200,000 mt and 8 factories. From 2004 to 2008, LiuHe chicken expanded quickly and the factory number increased to 52, which from Shandong province to Southeast,Jiangsu, Anhui and Henan. In 2008, the chicken product reached 1,000,000 mt with the turnover reached 120 billion. Liuhe becomes the no 1 company within national same industry.This paper uses strategy management theory and use SWOT method to analyze the geography, politics, law, economy, social and culture etc external environment as well as organizational structure, operation system, inspiration system, company culture etc internal environment which Liuhe chicken department is facing. This paper analyzes the general strategy which LiuHe takes and uses Five power analysis method to study LiuHe's competition strategy, concluding the reason why LiuHe chicken department could develop quickly and well. Hope to supply correct develop idea to China's chicken company and farming, herding industry and give reference to upgrade the China's farming, herding industry's strategy expanding capacity .