Development Strategy Of Guangzhou Al Industrial Co., Ltd

The world economy has been dragged into the most serious situation ever in 2008 and the pattern of the world economy has been greatly affected. Although there are signs of economic improvement, there is still a long way to go out of economic recession. China's economy has restoration of growth after the growth inflection point in 2008. The leather shoe industry faces growing challenges, the various trade barriers, the tougher anti-dumping actions, the pressure of RMB appreciation, the adjustment of export tax rebate policy and the rising price of raw materials. In this situation, a new and systematic strategic thought is essential for AL to survive, seize the opportunity and achieve sustainable development.This paper analyzes the external environment, economics, politics, society, technology, and explores current industry environment, the competitors and internal environment, such as corporate development and functional management by Michael Port's Five Forces Model. The application of SWOT analysis helps to have a better understanding of the strength, the weakness, the opportunity and the threat of AL. The strategic plan, including strategic objectives, paths and principles are put forward under the establishment of SWOT matrix and the matching for the development strategy of AL.This paper holds the view that AL should employ the growth development strategy. By making use of the product development and marketing advantages AL will become a leather supplier of leather shoes, leather belts, leather bags and leather suitcases, making a profit of one billion RMB in 8 years. To realize this objective, AL should apply operational strategy, organizational strategy, marketing strategy, financial strategy and human resources strategy. Moreover, AL should switches from the international market to domestic market, from a common leather shoes supplier to high grade Italian leather shoes supplier shoes and to a comprehensive leather supplier.