Study On Development Strategy In Small Manufacturing Firm In View Of Product Innovation

Contribution to the national economy of China’s private economy is growing, however, the private sector is currently facing the rugged living environment which brings "Population dividend" disappeared,contradictions of labor and rising costs, the policy pressure unbearable burden, financing, tax burden,the fierce market competition from home and abroad. All of these unavoidable forces lead them to bad condition in terms of their business operation which is in deeply financial difficulties.By studing on the JL Machinery Company as a typical small private company and by using theoretical analysis methods, through strategic analysis and product innovation capability analysis to prove that product innovation and is the core of development strategy for the small firms and is the real way for small private business to be survival.In addition, the case of product innovation and the problems of the implementation of innovation process were analized as well. Fully affirmed the correctness of product innovation strategy that JL company selected but also pointed out that a lot of work which has not been involved in the implementation of innovation operation and refine the proposed appropriate measures.