Research On Development Strategy Of HY Furniture Company

Furniture industry is an important industry concerning the people’s livelihood. With the rapid development of our country’s economy, the gradual improvement of people’s living standard and the increasing demand for furniture, China’s furniture enterprises have gotten vigorous development. In recent years, however, because china’s furniture enterprises have controlled the large number of foreign furniture market, more and more countries erect trade barriers for Chinese furniture. Together with the influence of the economic crisis in2008, more and more export-oriented furniture enterprises began to enter the domestic market, which broke the structure of the domestic furniture enterprise competition. Furniture import tariffs have decrease constantly and down to zero since china joined the World Trade Organization, which provided the development opportunities for the foreign furniture enterprises, so domestic furniture industry has been facing unprecedented challenges. Since2011, our manufacturing has encountered many unfavorable factors of restriction, such as the rapid increase of labour costs, the continuous appreciation of RMB, the sharp rise of the financing cost and so on. Precipitous rise of all kinds of factor costs resulted furniture enterprises in intolerable load, and many small and medium size of them are facing the survival crisis. In the face of the fierce competition environment, pour furniture enterprises, what is urgent to solve are how to draw out a strategy suitable for the company own and how to choose the correct development strategy, thus to enhance the core competence of enterprises.The development strategy of enterprises should make the appropriate adjustments according to industry development status and trends in different development phases. HY furniture enterprise was established in the1990"s, the development strategy set up according to the development trend at that time has no longer fit for the current market environment. That how to seek great development on survival foundation has become the urgent need problem to be solved.This paper starts out from development tendency of the furniture enterprise, according to the current situation of the development of furniture industry at home and abroad and of that of our company. It combines with the management theory of enterprise strategy and utilizes PEST analysis model、Porter’s Five Forces Model and the SWOT analysis to analyze the macro environment (politics, economy, social culture and technology),medium environment(the ability of suppliers for a supply of something, the ability of buyers for a supply of something, potential competitors into ability, vicarious capability of substitutes, current competitive ability of competitors within the industry). micro environment (advantage, disadvantage, threat, opportunity). Thereby elicits that a set of scientific and reasonable development strategy which fits HY company. The paper provides nearly five years development strategic objectives of company after analyzing it, and in conclusion, puts forward rectification measures for problems existed in all departments in order to implement successfully it. The study of development strategy makes HY furniture companies not only improve enterprise competitiveness and reduce risk decision but also know clearly the way forward and thrive. Meanwhile, other enterprises within industry take examples from it when they carry on the strategy programming.