DP Pump Company (China) Development Strategy Research

A real DP company is selected as the research object by the present article. First of all,the PEST analysis method is used to analyze the policy circumstances, economicsurroundings, market requirement situations that the company is involved and thecompany’s products technical status. The needs of the global pump market and Chineseindustries are analyzed. And a detailed analysis is made for the pump market situations inthe different industries in China during the "Twelfth-Five-Year-Plan". The opportunityof the company is pointed out. And the Michael Porter’s Five Forces Model (competitionamong the existing enterprises, the threat of substitutes, new entrants, threat to thenegotiating capacity of the suppliers and customers.) is used for analyzing the competitionsituation that the DP Company is faced. SWOT (opportunities, threats, strengths andweaknesses) method is used for analyzing company environment. The pump industry keysuccess factor analysis and GE matrix analysis is done. Enterprises own situation analysisof the state of manufacturing operations, sales and service states, human resource status,product development status, financial status and management state are analyzed. Thecompany’s strengths and weaknesses are found and the problems of each unit are noted andthe direction of future development is pointed out. Strategically relevant theoretical arestudied, a variety of strategic thinking are citied. Such as: concentric strategy, customersolutions strategy, focus on developing the strategy, system lock strategy, low-cost strategy,the strategy of vertical integration, horizontal integration strategy, differentiation strategy,the best product strategy, blue ocean strategy. Some representative figures of the strategicresearch as well as their representative views are studied. At the same time with thestrategy of each business unit strategy, such as marketing strategy, operations strategy,human resources strategy, product development, policy strategy and financial strategy arestudied.On the basis of the analysis for the situations of the company, the competitionsituation, together with the market requirement analysis, the BCG Matrix (stars, cash cows,dogs, question marks) analysis method is used to seek the chance for DP Company’s development. After all the detailed analysis and pondering as above, according to thepresent status of DP Company, the article worked out the development strategies in thenear future and in the medium/long range respectively. A proposal has been put forwardthat the company should take leapfrog-development-strategy, and rapidly grow. And thestrategy of business units (including such as marketing strategy, production and operationsstrategy, human resources strategy, product development strategy and financial strategy)are made. For detailed implementation, the strategic implementation principles, strategicimplementation route, and strategic implementation specific measures have all beensuggested. The article also proposed some relevant supporting policies to ensure thestrategic implementation and some points for attention. Organizational restructuring andprocess reengineering, knowledge management and quality of staff training, building ofenterprise culture, rational allocation of resources, corporate brand building anddevelopment, quality management action to be taken for the implementation of leapfrogdevelopment strategy are put forward. This article also analyzes the implementation of thestrategy and control precautions.