Research On Development Strategy Of SN Company

Nowadays,the living standard of Chinese people is becoming better and better.Amazing progress has been made in health care reform,as well as in modern science and technology.The aging process of Chinese population has been accelerated during the past two decades.However,Chinese people now have better ideas in keeping in good health.All these changes in the society have powered the development of traditional Chinese medicine industry,making it becoming better and prosperous.As a result,six enterprises have been approved by Chinese government to become "pilot production enterprises of Chinese medicine formula granules",which can only be used in pilot clinical hospitals stipulated by Chinese government.Chinese medicine formula granule industry has seen rapid growth under the supervision of Chinese government.Therefore,voices were heard from the medical world and provincial governments,Chinese herbal medicine enterprise in particular,called for the deregulation of Chinese medicine formula granule industry.As a results,the state gradually alleviated regulations of production enterprises and pilot hospitals since 2016.This action,however,have placed the original six manufacturers among both great opportunities from an expanded market and a future with more intense competition.As one of the six original Chinese medicine formula granule manufacturers,SN Company has made rapid development in Chinese medicine material GAP cultivation base,Chinese medicine formula granule varieties,market shares and production capacity.However,times are different due to state regulatory policy changes and more intense market competition.Now SN Company has to make further progress in expanding its market share.It also has to cope with fiercer competition by taking advantage of its strong resources.This paper has carried out a case study of the development strategy of SN Company by analyzing relevant theories hidden in the cooperate strategies.First,this paper analyzed the strengthens and weaknesses of SN Company by conducting value-chain analysis upon the planning and purchasing of Chinese medicine materials,manufacturing,research capabilities,marketing,human resources management,corporate culture and information construction.Then,opportunities and threats of the company were summarized by applying PEST model and Michael Porter's Five Forces Model on its macro-environment and medicalcompetitive environment.At last,the paper determined strategies of the company using SWOT analytical matrix,while establishing its strategic position and goals based on cost-leadership strategy.The core objectives of the three development strategies of "optimization of product cost,consolidation and development of regional market,service level and innovative service mode" are elaborated.The paper also formulated several safeguard measures,ensuring the smooth implementation of development strategies.It is hoped that this study may serve as a reference for decision-makers of SN Company in formulating development strategies.Hopefully,this may also help other Chinese medicine formula granule manufacturers with their development,in order to power the healthy and stable development of Chinese medicine formula granule industry.