A Research On Business Development Strategy Of Zhejiang MG Company

Enterprise management is a complicated systematic engineering. It involves in all aspects of problems and the factors leading to these problems are always developing and changing. When the enterprise develops to a certain size, still depending on experience or one-sided conclusions to guide business operation will take enterprise into a lot of blindness, even threat to the survival of enterprise. Zhejiang MG Company was founded just at the time when China’s automation industry was in high-speed development. In the past few years it really achieved extraordinary results. But after the Chinese government’s economic stimulating policy by putting4trillion Yuan into investment leading to redundancy of each basic production capacity, many industries are facing the problems of structure adjustment and industrial upgrading. And such excessive growth may not come again in the future. So, taking Zhejiang MG Company as example, this paper studies enterprise’s development strategies to find a suitable developing way for MG Company, which can play a guiding and referencing role for other similar private companies as well.Based on the external environment of automated control motor industry, this paper applies PEST analysis, five force model, value chain analysis, Boston matrix and SWOT analysis to systematically analyze opportunities and threats and internal strengths and weaknesses of Zhejiang MG Company. According to Porter’s three basic competitive strategies, the basic competitive strategy of Zhejiang MG Company is established. Using internal data of Zhejiang MG Company and related industrial information, in combination with current practical situation of Zhejiang MG Company, medium and long-term operation strategic plan of Zhejiang MG Company is established and specific strategic goals is confirmed in order to gradually make Zhejiang MG Company become the most influential manufacturer of control motor. Finally we put forward low cost strategy as the basic strategy for the future development of Zhejiang MG Company and to guarantee the implementation of the strategic plan we also propose series of detailed measurements.