A Business Study On The Strategy Management Of Siping Erlizhuang Electro-mechanical Equipment Limited

As the continuous development of reform and opening-up, market economy has alreadyoccupied the leading position in China. With the establishment and gradually improvementof Chinese socialist market economy, an increasing number of small and medium-sizedenterprises (SMEs) have sprung up throughout the market. However, most of them tend to beshort-lived in the market. The main reason is that those failed enterprises are still sufferingfrom the outdated concept and model of management. Nowadays, the competition betweenSMEs has become increasingly intense. In order to achieve the balance of products, servicesand market demand, enterprises, especially the SMEs should focus on developing their owncore competencies while realizing the reform and development strategies. Based on currentsituation of Chinese SMEs combined with the analysis tools of strategic management, thispaper explores the future developing strategy of Siping Erlizhuang Electro-mechanicalEquipment Limited (SEEE Ltd.).To begin with, by using the PEST analysis (political, economic, social andtechnological analysis), this paper indicated that the primary task of enterprises is torecognize its external macro-environment. Due to the uncertainty and uncontrollability ofenterprises’ environment, an enterprise has to first find those factors so that this enterprisecan be better prepared to deal with them. Secondly, enterprises should pay attrition on theircompetitive structures through the Porter’s Five Forces model. By using this model, theoutcome could allow enterprises to tell what competitive advantages they have, and whatthreats they have to face. It also shows enterprises how to maximize the advantages andminimize the weakness by adjusting their strategies. Thirdly, this paper evaluated the marketresearch by using the Boston’s matrix method. To use the Boston’s matrix method, analystsplot a scatter graph to rank the business units (or products) on the basis of their relativemarket shares and growth rates. This helps enterprises allocate resources and is used as ananalytical tool in brand marketing, product management, strategic management, andportfolio analysis. In addition, this paper adopts SWOT (strength, weakness, opportunity andthreat) analysis to evaluate the strengths, weaknesses, opportunities and threats involved inan enterprise. As a result, SWOT analysis gives enterprises a list of alternative options of their long-term development.According to the acquired knowledge combined with the strategy analysis, the authorproposed some corresponding solutions and suggestions to the SEEE. Based on the in-depthanalysis of the difficulties that SEEE are facing, the author expressed the way of enhancingSEEE’s market competitive ability and getting out of the predicament. Consequently, theresearch result of this paper can be treated as a great benefit for promoting the futuredevelopment of SEEE.