Strategic Research Of GS Publishing House Beijing Co. Ltd Based On The Differentiation Strategy

Since the inception of the new century, Chinese traditional publishing industry has been facing unprecedentedly complex and unpredictable situation. Within a short ten years, on one hand, China, as it has joined the World Trade Organization (WTO), began to open domestic publishing market gradually and the domesic publishing industry will face fiercer international competition; On the other hand, the productivity change, and the market environment change of readers’ reading habits as well as the sales channel caused by information technology, make the domestic small and medium sized presses implement the correct developing strategy within limited time, fostering their competitive advantage so that they could gain a firm foothold in the fierce market competition.In October 2007, out of promoting corporate restructuring process, the implementation of quality strategy, and actively responding to market competition and other aspects of comprehensive consideration, GS Publishing House Ltd decided to set up publishing centers in Beijing, to completely strip the book product line of market out from the business units of original books Textbook survival core. The publishing center has won an area in the fierce market competition with its unique product idea, flexible brand management, and targeted sales channels under the guidance of the differentiation strategy. After five years of market accumulation and preparation, GS Publishing House Ltd established the limited liability company and began to operate in July 2009 in Beijing.This paper analyzes the various elements of the external environment of GS Publishing House Beijing Co.Ltd through PEST model and the-Five-Force model of Porter, and clearly defined the macro environment and its own status of industry competition, and proposes that GS Publishing House Beijing Co. Ltd should create unique core differentiation competitiveness in the aspect of publishing concept, products forms, sales channels, industrial chain derivatives market under the guidance of differentiation strategy theory, create book brands with unique styles and form "small and unique" originality and innovative publishing institution model. Through the internal environment analysis of the company including resource capability, market positioning, brand effect, value chain, finance and so on by SWOT model, it points out the deficiencies in the internal mechanism transformation and industrial upgrading preparation of the company and puts forward the specific measures in the aspects of publishing thoughts, personnel allocation, incentive mechanism, channel strategy, industrialization stretching, etc. On this basis and everything put together, the development strategy for GS Publishing House Beijing Co. Ltd currently applicable and based on differentiation is defined, and the more detailed strategy implementation targets and safeguard measures over the next 5 years are formulated.In the process of study and creation, the author integrated his 8-year working experience and realization in publishing industry into this paper. Especially in the general background that the Party Central Committee pays high attention to the development of cultural industry and vigorously promotes the reform of state-owned enterprises, and according to the reality of the enterprises in the process of the publishing industry reform as well as combining with research of the related enterprises’ strategy theory, the paper comes up with developmental strategy cases of certain operability, hoping to provide some references for other similar domestic small and medium sized publishing companies.