A Study On Competitive Strategy Of United Company’s Supplementary Business

China currently has more than one tens of thousands of private publishing companies. With no sufficient fund and poor management experience, private publishing occupied more than90%market share of supplementary books and bestseller. They are more than head and shoulders above state-owned presses which have government’s supportive policies and resources. Private publishing companies win the competition in supplementary books and bestsellers market by flexible operation mechanism and quality of the products. In the publishing industry which is interposed strongly by Chinese government, private publishing faces the extremely unfair competition environment compared with the state-owned presses. State-owned presses have book number resources、tax cuts、 policy subsides、national projects、personnel security、initial public offering that are all difficult for private publishing to obtain. Policy risk is private publishing enterprises biggest risk. As a typical private publishing company, united company faced with the risk policy, the Internet technology industry, is difficult to survive.Firstly, using the basic strategic analysis method-PEST analysis, Porter’s five forces model, SWOT analysis to analyze united company’s external macro environment, industry competitive environment, internal environment; Secondly, using SWOT matrix to determine the united company’s competition strategy; Third, by comparing three competitive strategies, combined with development goals of united company, make united company should adopt supplementary services combining low cost and differentiation competitive strategy; Finally, reforms are proposed from the organization, remuneration system, cost control, product development, product marketing and other aspects,.This paper systematically analyzes the united company’s competitive market situation, makes the development of a competitive strategic measures; On the other hand, by studying competitive strategy of a representative of private supplementary publishing enterprises, the paper prospects the development direction of China’s private publishing and explores the reform and development path of the small and medium private supplementary company.