Research On The Development Strategy Of ED Network Technology

Over the past three decades since reform and opening up, small and medium sized enterprises (SMEs) have become a strong force in China’s economic growth. The SMEs are decisive in improving people’s living standards and ensuring social harmony. At present, information technology for China’s SMEs stills stays at a primary stage. Therefore, under the irrevocable trend of informatization, it’s imperative for the SMEs to enhance their informatization, facilitate their innovation and management and achieve the target of transformation and upgrading by opening up international and domestic market.Under the trend of informatization, the small and medium sized network technological company should grasp the ever-changing business opportunities and formulate a sound development strategy while making use of its advantages and strategies. While helping the SMEs develop their e-commerce, it is also important for the network companies to achieve self-elevation, gain its competitive advantages and obtain its strategic goals.The thesis introduced the background and significance of small and medium sized network companies in the first place and then put forward the research method and structure. In analysis of the company’s external and internal resources, the thesis focuses upon China’s network development and ecommerce development, which can better predict the development of ED Network Technology Company. The PEST analysis tool was employed in the study of the external micro environment. And the five forces model of Porter’s theory of competitive strategy was also applied in analyzing the competitive structure of ED Network Technology Company. As a result, the research indicates that the company needs to adjust its development strategy. SMEs make strategic choices through SWOT portfolio analysis on such basis, adopt expansionary strategy according to each company’s mission and strategic objectives, guard against potential competitors by adopting the overall cost strategy, develop businesses with a centralized strategy supplemented by a differentiation strategy, and make evaluation of development strategy. To ensure the implementation of the enterprises’development strategy, the thesis discussed three aspects, namely strategic thinking, strategy implementation, and strategic control. On the basis of summing up experiences, the thesis creatively proposed the strategic implementation of five systems to ensure the executive force of enterprises. In order to ensure the implementation of such strategies, the thesis formulated protection mechanisms to implement such strategies from eight aspects, namely, innovative business model, technology innovation, human resources development, smooth service support, unique corporate cultures nurturing,"customer-oriented" marketing mechanisms, homeostasis financial systems, and risk control systems. The case studying of the development strategy of ED Network Technology Company is of great significance towards its long-term development, can serve as reference for Internet companies similar in size and conditions, and has certain reference value for the strategic development of SMEs.