Research On The Development Strategy For BAIC

National Broad Aviation Industry Co. LTD（BAIC）, as the base of production anddevelopment for medium and small sizes aeroengines, after more than60years ofdevelopment, the significant growth of Chinese economy has influenced Chineseaviation industry. These have brought the great opportunities for aeroengines industry.However, with the monopoly of aeroengines market by several lead manufacturesfrom foreign countries and the new comers in China, the future competition willbecome more and more competitive. For the sake of competitive advantages, we haveto intensely research the development strategy and implementation of Chineseaeroengines industry. The article, then, analyzed the strategy environments, marketdemands and industrial structure of the company by means of PEST analysis method ofenterprise strategy environments. The article constructed Michael Porter’s Five ForcesModel, described comprehensively the administrative documents of home and abroadand the strategy features of enterprise in summary. The article selected and analyzedsome similar representative enterprises in China and abroad and pointed out thedevelopment chances and challenges which the company now is facing to.The articlehas also systematically described and analyzed the strategy resources and capabilitiesof the BAIC. Based on the present situation of the aeroengine business line, the articlepointed out the core capability of the company according to the existed experience ofconstruction of the base of medium and small sizes aeroengines. With the SWOTanalyses method, the article deeply analyzed the foundation of strategy capability ofthe company by associating with the analyses of outer environments and innerconditions to provide the ideas and evidences for the establishment of strategyplanning program. This article, under such a background of BAIC,systematicallyanalyzed the inner and outer environments and raised a strategy planning program ofBAIC to the year of2020. That is “Five years for laying the foundation,to achieveturnover of more than10billion target in ten years, strive to become world-classsupplier of medium and small sizes aeroengines”. With inner and exterior environmentanalysis of the enterprise, the article made out the strategy planning and strategy targetof the company and pointed out various of strategy planning program.