D Company Development Strategy Reasearch

IDC, which acts as an important pop in the Internet information transmission, plays asignificant role in its development. Since1990s, IDC business has made tremendousdevelopment in China. In recent years, IDC business has increased by over20%. This growthis accompanied by the constantly updated internet technology and the sustainabledevelopment. The Internet continues to create new business model, as well as to providethriving opportunities of the IDC’S own development. However, why are the private IDCcompanies in the face of so many problems and challenges? As the technology constantlyupdates and the market competition turns white-hot, this kind of operating companies needs todynamically analyze the industry environment, and to enhance their competitiveness throughestablishing the companies’ core values.D company, an IDC and CDN Business Operating Private Company, is among the bestin the domestic industry with its nearly20%market share. The company is able to produce itscore technology by the independent research and development. Yet, the problems anddeficiencies still exist in the operation and management of the company. Its long-termdevelopment strategies need to be clear and its core competitiveness construction should beurgently improved as well. Therefore, the research on D company’s corporate strategies cansignificantly guide this industry.Focusing on the status of D Company, this paper not only analyzes the internal andexternal business environment but analyzes the industry structure with the Porter’s FiveForces Model as well. The internal conditions are also analyzed, which include the company’smain products, resources, business abilities, value and its competitive advantages. Thisanalysis helps the company figure out its competitive advantages. The analysis reveals thatChina is just in the historical stage of a rapid economic development, so the construction anddevelopment of the Internet has risen to national strategies, furthermore, the appropriatepolicy has also been introduced. Our country has given full policy support to the constructionand development of the Internet which has played a positive role in promoting the cause ofthe Internet; Constantly updated technology also makes the development of the Internet fasterand higher. Thus, D Company is in a period of rapid development of the Internet with full ofopportunities, but at the same time full of challenges and competition. Political, economic,technological environment as well as other macro-environment for the long-term development of the D company is extremely beneficial. Through the analysis on the internal factors, DCompany has had certain technical strength and market development capabilities, and theadvantages of the resources and marketing abilities. But the formulation of the company’sstrategies is rather vague and it fails to give full play to the strengths and expertise; There aresome deficiencies in the management. Through the above analysis, providing thedevelopment strategies, this paper has shown D company a way of looking for the bestcompetitive strategies. The SWOT Analysis has been used to analyze the strengths andweaknesses of this company, as well as its environment, opportunities and threats. Finding outthe possible development opportunities and challenges created by the environment and settingthe strategic objectives, the two competitive strategies of D company have been chosen: Costleadership strategy and Differentiation competitive strategy, This paper has provided areference for those IDC and CDN business operating private companies when they want toselect the strategies.