The Competitive Strategy Research Of Rongxi Group

Shandong Rongxi Group Co. Ltd. Is a seafood product producer located in east Shandong province where is the center of seafood breeding and processing in Shandong province. Recently, more and more seafood firms aggregates in the area, so that the competition of the industry has become increasingly fierce. The risk of technology spillover is large and the products of different firms become more and more similar. In such a situation, it is necessary to discuss how to make Rongxi group different and form its competitive advantage, which is a great issue caring about the development of Rongxi group. This paper aims at making an enterprise strategy for Rongxi group.At the very beginning, the external environment of Rongxi group has been analyzed. According to the result of the PEST model and Porter’s Five-force model, Rongxi group would like to grow larger and faster in the next few years because of the policy made by the government. Besides, the good economic foundation of Shandong is a great advantage for Rongxi group. However, there are some threats to the development of Rongxi group, such as the weak demand and the fierce competition. With the help of EFE matrix, I found that the external environment would make a positive effect on the whole.An analysis of the internal ability of Rongxi group is another basic process. Using the tool of value chain, I found that Rongxi group has the advantage of integration which would cut its cost largely. What’s more, Rongxi group invests large amounts of money on R&D every year. While, there is a great disadvange in marketing of the firm. The firm suffers a lack of marketing talents and brand influence. Using the IFE matrix, I found that the advantages of the firm far outweigh the disadvantages.According to the results above, I use SWOT model to choose a proper competitive strategy of Rongxi group. Using the tool of QSPM matrix, a differential strategy is chosen for Rongxi group. Then, a strategy implementation plan including the process of breeding, logistics, R&D, marketing and service is made. At last, several strategic safeguard measures are made.I hope my research of Rongxi group may be useful to the medium and long-term development of the firm. At the same time, this study may provide a reference for other seafood producers when making an enterprise strategy.