Study On The Development Strategy Of Chenghang Industrial Safety System Co.,Ltd

The Chenghang Industrial Safety System Co.,Ltd(Chenghang)is a subsidiary ofChengdu CAIC Electronics Corporation of Aviation Industry Corporation of China(CAIC)The Chengdu CAIC Electronics Corporation is a state-owned enterprise mainly engaged in military electronic products.And its military business of CAIC has made rapid progress,while it is weak in civil products.Compared with the military business,the civil business of Chengdu CAIC Electronics Corporation had lagged far behind,and some civil products even had shown deficit and negative growth,restraining the industry's rapid development.In order to enlarge and strengthen the civil industry,the CAIC separated civil business from company business and established the Chenghang by merging and integrating the civil item in accordance with the principle of technological and market correlation in 2008.The major products of Chenghang such as elastic sensitive element,bursting disc safety device and steams trap etc were widely used into the industry of aeronautics,aerospace,petroleum,chemical,metallurgy and energy sources.In the past four years,the various economic indicators of the corporation had increased by 23%by the innovation of management,technology and market.how to maintain the company's rapid development and to posses a firm foothold under the circumstances of economic globalization,rapid technological innovation and intensified competition in the market become the focus that the author as the company manager has been thought about.After a systematic study of two-year EMBA program,I have clearly realized that the best way to surpass the rival is to explore and formulate a development strategy to exceed the rival's.In this article,Chenghang was used as the research object based on many years experience of the author in technology development and business management.The current situation of Chenghang was firstly introduced in the thesis in order to give readers a clear understanding of the company's organizational structure,product usage,technology development status,prospects and development of business market.Secondly,the development prospect of the domestic market shared by the products of Chenghang was predicted and analyzed so as to provide a matting of company's future development in latter part of the thesis.Thirdly,the macroscopic environment,vocation circumstance and rivals to determine the potential external opportunities and threats to Chenghang were analyzed with the methods of PEST,Michael Porter's Five Forces Model and Industry Life Cycle etc.The Chenghang's core competitive strength and the advantages and disadvantages were explored based on the analysis results of the internal environment analysis of technology,material,human,financial,stealth and network resources etc by the Enterprise Value Chain Model and Benchmarking Method.The SWOT was employed to analyze the opportunity and threats in external environment and the strengths and weaknesses in internal environment in order to establish a strategy,mission,prospect and mid-long term goal of Cheng hang.The choice of the corporate-level strategy which includes growth,stabilization,defense and shrink must be formulated according to the company's internal conditions and external environment changes so as to select the range and the field that the corporation will engage in and expand.Management strategy(competition)comprises cost leading strategy,differentiation strategy and centralization strategy.Competitive advantage is the.core of all strategies.The choice of the appropriate competitive strategy must be based on the comprehensive analysis of the vocation,market,competitors and its own internal resources.Fourthly,a constructive planning about the establishment of the technology development,product development and capacity protection was proposed to ensure the achievement of company's strategic goals in the next 5-10 years,the authur put forward a clear idea and a vision about the implementation of management innovation and aimed to provide effective protection to ensure the smooth realization of strategic objectives.Finally,the risks hidden in the process to implement the company's future strategic objectives were assessed and their countermeasures were provided.This'thesis consists of seven sections.In the first part,a detailed description of company membership,business,organizational structure,staff size and the basic business in recent years was carried out.In the second section,a brief introduction about the elastic sensitive elements,bursting disc safety devices and valve products,three main business of the company,was given.And the development status and the professional technology prospects of the various businesses were objectively analyzed,and then the domestic market scale and domestic future prospects of the three main business of the company were also predicted and analyzed.In the third section,the opportunities for and threats to business development which would be result by the political situation,laws and regulations,economic and technological environment etc were analyzed in detail based on PEST.In the industry environment analysis,Bain theory,Porter's five forces model and Benchmarking were used to analyzed industrial competition groups,degrees of industrial concentration and monopolies,the threat of new entrants and substitutes,bargaining power of suppliers and buyers,and the intensity of the current competitors,the business development of the direct competitors,technology,talent and product advantage and the competitive strategy,respectively.The company's core competitiveness and the advantages and disadvantages were investigated by analyzing the internal environment including the technology,material,human,financial,stealth,network resources etc based on enterprise value chain and benchmarking management,etc.The opportunities and threats,internal strengths and weaknesses under the external and internal environment were systematically analyzed by SWOT to establish the strategy of SO,WO,ST and WT,and the direction of the strategic positioning and development goals of Chenghang.wrer pointed outIn the fourth part,corporate mission,corporate vision and business strategy of Chenghang were extracted based on the analysis mentioned above.Chenghang has determined the guide line based on the civil industry,to provide high quality products to users,to make the best of the company's core technology to develop the military market and export business,to be the only supplier in the field of safety and environmental protection and to achieve a leapfrog development.The development goals and development ideas of Chenghang the next five and ten years has also been proposed.In the fifth section,in order to further enhance the competitive advantages and ensure the achievement of strategic goals,the company's future development emphasis and implementation plan were proposed in this thesis.The plan will be mainly executed by enhancing the technical abilities of the company from two aspects of technology innovation and development of core technology,intensifying the speed of new product development,increasing the ability of process equipment and technology,efficient manufacturing and research and development abilities by the construction of the capacity platform of the company.In the sixth section,to begin with enhancing the "soft power" of the company,seven safeguard measures about personnel training,management innovation,the market system,the quality of management and technological innovation were proposed in this study for ensuring the successful realization of Chenghang strategic objectivesThe risks hidden in business management,marketing management and demand for investment,etc during the enforcing company's future strategic objectives and tasks were assessed and their countermeasures were provided in the seventh section.This thesis focused on the comprehensive analysis on internal and external environment around Chenghang,and then the enterprise business strategy was extracted.Another feature of this thesis was that a plan about how to gain a competitive advantage under the increasingly fierce market competition was proposed according to the authors own management experience for many years.Of course,some imperfections in this thesis exist because of the author's limited knowledge.Hopefully the readers can provide valuable suggestions and comments.