Study On The Development Strategy Of Clothes Department Of Company A

Though faced with the global financial crisis, China has been maintaining fast yetsteady economic growth. Being the main body of the development of economy in ourcountry, state-owned enterprises play a crucial role. Be authorized by the State-ownedAssets Supervision and Administration Committee, Company A was set up on the26thof June,2009and listed its shares in Shanghai Stock Exchange on August16th2010,which was authorized by China Securities Regulatory Commission. Company A has30second-level wholly-owned subsidiaries and4third-level subsidiaries as well as3sharing companies, which are distributed over21provinces, municipalities andautonomous regions with more than10billion in assets. Company A is one of themost important munitions production base for the Chinese army and armed policeforce, which is also the main supplier of the uniform not only for the professional jobbut the government. Besides, it’s the main procurement and processing base in theInternational military supplies. The main businesses of Company A are as follows: theproduction and selling of clothes, hats, shoes, textile printing, leather and rubberproducts; investment and management of medicine, chemical products and resourcedevelopment; industrial investment and management; business and logistics projectinvestment and management; imports, exports, technological development, serviceand management consulting. Career apparel department has10enterprises whileprotective apparel department has6enterprises, exporting to more than40countriesand regions. Company A is ranked Number484among fortune500companies, whoseannual value go over30billion RMB.After China carried out reform and open policy, dramatic changes have happened innation economy of China. Under China’s planned economy system, the main task ofthis company is to supply logistic service for the Chinese army and armed police. Butsince1990, Company A as well as its subsidiaries has been taking the initiative infinding customer resources in other industries, expanding international militarymarket actively, whose industrial structure has transformed from single scheduledpurchasing into army-civilian combination form. Since the global financial crisisbreaking out in2008, affecting by a series of external factors such as the depression ofthe international economy situation, enormous pressure of RMB appreciation and thesharply raised value of labor productivity, the structure of processing industry arefaced with another around of adjustment. The main production mode of Company A islabor-intensive production. What’s more, labor shortage, outdated equipment andtechnology, unsound system are the other factors which bring great challenge forCompany A.The paper takes Company A as an example to make the development strategyresearch. By taking strategic theories, SWOT investigation as well as the comparisonwith other industries and foreign advanced enterprise development patterns, analyzehow to downsize and how to improve industrial competition and profitability.According to the result of analysis, some suggestion is provided.