Hunan Yahua Dairy Holdings Co., Ltd. Competitive Strategy Research

Strategic management is a dynamic process in which the senior managers establish, and implement strategies to achieve the goal based on the scientific analysis of macro-environment, industrial environment and internal conditions of the enterprise. It is exerting a growing important effect in modern enterprise management.Since the1990s, strategic management theory has entered a new stage of practice and innovation on the basis of absorbing and comprehension. The enterprise strategic management is introduced into Hunan Ava Dairy Co., Ltd, but there are still some problems can not be ignored, such as lack of comprehension of enterprise positioning, ineffective implementation and no obvious effect of enterprise strategic management.This paper constructs the development strategy of Ava Diary (2011-2015) based on the results of SWOT analysis and strategic management theory, PEST analysis and Michael Porter’s Five Forces Model was used to investigate the internal and external environment of Ava Dairy. This paper thinks Ava Dairy has a large market opportunities because of Chinese liquid milk market being in high development. However, due to a serious shortage of high-quality milk companies, limited scale of capital and production, the enterprise profit capability and new product development capability of Ava Diary is not strong. Therefore, Ava Dairy is difficult to compete with the big companies, and far behind them in advertising, marketing, etc., the brand advantage of Ava Diary is significantly regional.So, Ava Dairy development strategy should be defined as follow based on the development trend of China’s dairy industry and the superiority and inferiority of its own:Firstly, enterprise vision, become the king of China’s dairy industry, the leading brand in Hunan fresh milk, nutritional and dietary expert in five to ten years; Secondly, select the solidity general development strategy, that is, market-oriented, innovation-based, infant formula and fresh milk as the main direction of development, through the implementation of brand development strategy, to make Ava Dairy a well-know dairy companies. Thirdly, select competitive strategy mixed of differentiation and cost leadership, that is, differentiation competition in leading products, but cost leadership competition in non-leading products.Meanwhile, Ava Diary should be establish and implement the functional strategy, such as product strategy, milk source strategy, dairy research and development strategy, brand strategy, quality strategy, etc., the implementation of the strategy should develop a scientific plan to strengthen the implementation of corporate strategy evaluation and control, and according to the corporate strategy changes in the environment, timely and appropriately adjust and optimize the corporate strategy.