Research On A Building Materials Company Business Strategy

Nowadays, with the globalization of the economy, the enterprises have been becoming the dominant player in the market competition, the competition between enterprises goes beyond areas and countries. On the other hand, the global economy still is still not recovered from the 2008 financial crisis, many enterprises’operations fell into difficulty, even went bankrupt, facing such a situation, if the enterprises want to survive and get long term competitive advantages in the global market competition, they have to rethink and reevaluate their strategy. A building materials company is a company that produces wood stair parts. The company is facing raw materials cost rising, labor cost rising, and the pressure from competitors. Based on the analysis of external environment and internal factors of A building materials company, strengths & weaknesses, opportunities & threats, and related business strategy theories, this paper aims to point out the problem and put forward reasonable development strategy for A company.The overall strategy of A company is growth strategy. The company set up three strategy targets:1. Sales revenue increase 10% averagely in wood stair parts market of United States within 5 years; 2. Reduce the production costs by 15% within 5 years; 3. Create a some well-known brand within 5 years. The basic competition strategy of the company is low costs strategy. The company will concentrate the superior resources to meet the demands of consumers, and become the market leader in wood stair parts field.The paper also discusses the implementation of the strategy of A company. Because the strategy implementation is an essential part of the company strategy. It is very important for company strategy realization. The paper discusses the strategy implementation through several aspects as below:improve the machine automation, move company to low costs area, set up R&D department for products innovation, create employee incentive system, enhance the company brand value by trademark registration, products innovation, market promotion.The paper takes A company as the research object, discusses the strategy and strategy implementation of A company, it will help A company development, and also hope it can provide some help to other companies’ strategy research in wood stair parts industry.