| Under the new normal of the economy,macroeconomic growth has slowed down,bank credit has shrunk,and some private enterprises have begun to experience problems such as broken capital chains,rising costs,and financing difficulties.Since2018,Zhejiang private enterprise HD Co.,Ltd.has encountered problems such as financing difficulties,reduction of holdings by controlling shareholders,and large impairment of goodwill.In the face of challenges and difficulties,the corporate strategy that once guided HD’s rapid expansion and diversified development can no longer guide corporate development.HD companies need to conduct strategic transformation through strategic analysis,implement transformation guarantee measures,gain competitive advantages,and give full play to the role of private enterprises as the main body of high-efficiency market competition.The nylon business of HD Co.,Ltd.has basically been operating well in the past,and its products have certain market advantages.In view of the shortcomings of the company’s existing strategy,especially the difficulty of financing and the tight capital chain in the implementation of the backward integration strategy:(1)According to the PEST theory,the reasons for the many problems that HD companies are currently facing are analyzed.The state has created a more favorable living environment for private enterprises,but private enterprises have not yet been treated fairly and fairly.China’s economic growth,fixed asset investment growth,and Zhejiang’s private economy have all shown a slowdown.The increase in social financing and the proportion of currency issued to the real economy in the stock are also decreasing.Financial policies support the real economy.The growth of loans to private enterprises has been slow and costs have risen.China is a big country in chemical fiber industry.The industry is fully competitive.The operating rate and profit rate of the industry are basically stable.However,due to the price influence of cost,the independent pricing ability of enterprises is not strong;(2)Using Porter’s five forces model to analyze the competition among peers in the dynamic balance,there are also some companies that have outstanding development;potential competitors are mainly polyester and nylon-related industries;HD company’s bargaining power with suppliers is not strong,HD Co.,Ltd.’s customers and market demand will continue to increase,relying on quality and Scale advantage HD Co.,Ltd.has certain market bargaining power,which can support the company’s sustained and steady development and growth.(3)Using SWOT analysis to find out that the company’s workshop,equipment,and geographic location are the advantages of high-quality resources for corporate strategy.The nylon fiber industry chain is complete,and it is not very attractive to foreign investment.It is a market opportunity that is dominated by endogenous growth.Through the investigation of corporate factors and capabilities,participants agreed that HD companies need to carry out strategic transformation,and then put forward the transformation goals and plans of investing in the industrial chain after shrinking and based on the main business of nylon,as well as the corresponding strategic safeguard measures including external resources.Provide guarantee,adjust the decision-making of the structure and provide guarantee from the inside.Macroeconomic environment under the new normal of economy and other external changes impact the survival and development of private enterprises.Enterprises need to take advantage of the situation and carry out strategic transformation in time.The development of the industry has an impact on the strategic planning of enterprises.When the industry development enters the saturation stage,the strategic planning of enterprises should also be transformed accordingly business operation,management and other internal factors directly affect the realizability of enterprise strategy,especially when enterprises encounter difficulties,enterprises need strategic transformation.Private enterprises in China,especially those in Jiangsu and Zhejiang,are the most prominent group facing the transformation problems.Combined with the new normal economy,the analysis of the strategic transformation of HD Co.,Ltd.,a private enterprise,has a distinct epochal character.Moreover,HD Co.,Ltd.,which ranks top many years in private enterprises in Yiwu,is typical representative of the strategic and operational problems and also has a significant impact in Yiwu and Zhejiang recently. |
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