Research And Evaluation Of Corporate Strategic Choices Under The Background Of Supply-side Reforms

"Supply-side structural reform" was proposed at the end of 2015.It has been more than four years since then,and the achievements of the supply-side structural reform tasks completed by various companies have begun to appear.Based on the theory of “new supply economics” and strategic management theory of Value innovation,this article uses Wanhua Chemical Group Co.,Ltd.and Hubei Shuanghuan Science and Technology Co.,Ltd.As the case companies to study the strategic choice of enterprises in the context of supply-side reform.The case study found that Wanhua’s strategy focused on innovation.Through enterprise system’s reform and technological innovation,it achieved the assignment of optimizing product structure and supply’s innovation.The effect of eliminating backward production capacity is obvious,and the company’s operating performance was higher than the original level.Shuanghuan’s strategic choice tends to defend.Shuanghuan Technology realized the tasks of reducing production capacity and reducing costs in supply-side reform by transferring the shares of subsidiaries and improving equipment.The effect of eliminating outdated production capacity is obvious,but the market competitiveness of theirs products has not improved by reducing the products’ cost,and the company’s operating performance has declined.It can be concluded from this case that strategic choices of focusing on innovation have a higher degree of completion for supply-side structural reform,and have relatively higher performance levels.In China’s existing literature about supply-side structural reform,most of the study’s directions focus on exploring the role of the government in the reform process,and give suggestions from the macro-control level.Based on the Microenvironment,this article explores the role of corporate’s strategic choices in supply-side reform.It provides evidence for the new supply economics theory with Chinese characteristics and strategic management theory of Value innovation,and provides some experience about the supply-side reform for other enterprises to reference.