Research On The Growth Strategy Of Erie Group 's Overseas Business

With the rapid economy development, China has integrated into the world gradually, and become a big dairy-import country along with the increasing demand for dairy products. Facing the Chinese milk production in short supply and milk production spreads imbalance in the world, it has become an important way to the dairy industry development and an urgent need for the Chinese dairy industry sustainable development that develop the oversea business using the global resources. Under the fierce market competition, dairy enterprises must be in the light of its general trend, participate in the competition, promote their ability, operate in the international way, integrate into the world production system, enhance their competitiveness in the international market competition. In a word, Chinese dairy enterprises could do nothing but to develop the oversea business to allocate resources in worldwide optimally, it will solve the Chinese milk contradiction between the supply and demand, enhance their own strength, promote the product quality, advance the brand image and achieve the sustainable development.Being the leading enterprise in China, Yili Group relies on favorable domestic situation in politics and economy in Chinese dairy developing oversea business, and the advantages of oversea business development in brand, technology, research, quality, development, etc., on the face lacking raw milk, blooming demand, and a big future in dairy demand in China, it is also a strong dairy demand in the world, at the same time, there are rich in raw milk in New Zealand, Australia, EU, America, etc., milk protein content is high, and the price is lower in these areas than domestic price in China, moreover, consumption in these areas is limited, there is a considerable part of the excess dairy products in these areas, Yili Group should use the global resources, regulate and control it strategically to increase market share, build Yili brand, in order to continuously enhance its market competitiveness, and achieve scale benefit.Through the analysis present situation of the dairy industry in the world and China, combination with the Yili group condition in development oversea business, and on the basis of analyzing dairy oversea business marketplace by Michael Porter’s Five Forces Model, studying dairy oversea business macro-environment by PEST analysis, and evaluating the Strengths, Weaknesses, Opportunities, and Threats involved in Yili Group developing oversea business by SWOT Matrix, the study is divided the world dairy market into three areas, and taking cost leadership strategy in milk oversupply areas, adopting differentiation strategy in milk supply-demand balance areas, and using global standardization strategy in short supply areas. The study also proposes some corresponding strategy measures.The necessity in Yili Group oversea business development, marketplace and macro environment of dairy developing oversea business, strategies choosing in dairy developing oversea business, and corresponding strategy measures in human resources, organizational structure, corporate culture, quality control and so on, all of these aspects are helpful to guide and reference for developing oversea business and internationalizing Chinese dairy enterprises.