A Study On The Development Strategy For Fujian M Co., Ltd

Over 30 year's reform and opening up to the outside world,China's economy has sustained rapidly development.China has become one of the biggest metallurgical manufactures of basic industrial raw materials that were driven by the growth of economy.However,in recent years,the problems of overcapacity,low industrial concentration,shortage of resources,unreasonable product mix have been emerged.Under the guidance of national industrial policy,the mergers and acquisitions among the metallurgical enterprises have happened frequently.As the only state-owned assets administration companies in Fujian Provincial Metallurgical industry,M Corporation has a dominant position in Fujian Province,but the overall position in the whole country is still weak.M Company is facing some problems such as weak control over the following companies,lack of synergy among companies, lack of the mechanism of optimal distribution of resources by M company,which restricting company's further development.This paper attempts to applicate the analycal tool-the growth of the share of the Boston matrix and matrix GE in strategic management theory to analyse M Company's corporate-level strategy.First,the M company's business unit strength and attractiveness of markets was analysed.Second,the portfolio of business units was determined.Third,the operating unit's strategic growth direction and the allocation of resources were planed.Finally,the developing strategy and its implication plan were proposed.The study found that GE matrix was more suitable for the anlaysis of them company development strategy.The analysis results show that M Company's tungsten and steel industry should adopt growth strategies and be given priority in the allocation of resources.For the steel SBU,heavy investment is need for it to reach a dominant position in the industry.However,for the tungsten SBU,market segmentation is the main strategy.On the other hand,aluminum and real estate SBU have better to adapt maintain or seek selective development strategies to protect them scale.especially,the real estate sector should conduct accurate market positioning, select the focus of land and project to develop.For the trading SBU,the strategy of stop,transfer,withdrawal may be the best choose.