H Group’s Development Strategy Based On The Business Ecosystem

In2008, a financial Tsunami which was caused by America subprime crisis engulfed the entire world, increased the uncertain factors of the global economy. The world economy is entering an unprecedented rapid developing time. We are facing a new challenge which consists globalization, informatization and some other complex factors. When the uncertainty is becoming the normalcy, how does the enterprise maintain and strengthen their competitive advantage to achieve sustainable development? It is a new question for many entrepreneurs and scholars, especially for Chinese private enterprises. Under this situation, the modern enterprise’s development enters to a new era of strategic management. The enterprise which is conducted by strategy theory gradually shows its strong competitive advantage and vitality. In1996, American scholar James Moore (James F.Moore) published" the death of competition", it symbolized a significant breakthrough of the competitive strategy theory. James Moore used ecosystem concept to describe today’s commercial activity, pioneered the term "business ecosystem" and has been central in developing an ecological approach to business and economic strategy.To establish a solid theory foundation, in the2nd chapter of this thesis, author analyzes the background, connotation, characteristics and structure of business ecosystem theory. This thesis takes the H group as the objective, analyzes the regional economic environment, the industry, and the nature of the enterprise in chapter3and4. At present, the industry structure of H group is relatively stable, but the market environment, the technology environment and the competitive environment are fast changing, the enterprise needs to improve the adaptability continuously. The business ecosystem mentioned in " the death of competition" is an open system; it is very reasonable and very applicable. Therefore, how to analyze the business ecosystem and establish an appropriate business model is an inevitable choice for modern enterprise. In chapter5and6, the main of this thesis, author uses the business ecosystem theory to establish a strategic management prototype for the Group H. Basing on the widely proved strategic management theory, and considering the characteristics of Chinese private enterprise, author builds up an ecosystem framework. This thesis analyzes the characteristics of the objective commercial ecosystem, right positions the different companies of the group respectively, and drafts Group H’s development strategy.