Research On Development Strategy Of J Chinese Decoction Pieces Company

Due to the population aging inceases dramatically and the enhance of people’s health consciousness,people are spending more costs on social,medical and health care.The traditional Chinese medicine engaged in the new coronavirus pneumonia prevention work which played a key role in this period.The public’s recognition of traditional Chinese medicine has improved a lot,which has opened another round of golden age for the vigorous development of traditional Chinese medicine industry.However,the total revenue of J Chinese Medicine Decoction Pieces Company has decreased in the past three years and it grows very slowly.Currenly,J company’s development has faced up with many difficulties.Therefore,it is very significant for J company to clarify its development strategy.This dissertation determines the basic framework on the basis of studying lots of works on strategic management and pharmaceutical industry which refers to a large number of relevant data.First of all,this dissertation introduces the development status of Chinese medicine decoction pieces industry systematically and comprehensively,and uses PEST and Porter’s Five Forces model as the main tools to know the macro environment and industrial competitive status.Then SWOT is used to understand more details on J Company’s opportunities,threats,strengths and weaknesses.Based on J Company ’ s mission,vision and strategic goals,integrated strategy,intensive strategy,and diversification strategy are discussed for strategy choices.After detailed analysis,J Company should adopt an integration strategy.At last,through analyzing the strategy of cost leading,differentiation strategy and resource concentration,a comprehensive competitive strategy with cost leading is chosen to be the competive strategy according to the industry characteristics and J company’s advantages and disadvantages.Meanwhile,culture,branding,marketing,and informational measures are taken to strongly support the implementation of the competive strategy.With the support of the government policies and the opportunities,hopefully it could enable J Company to clarify its strategic development direction,get rid of the current bad development trend and stand out in the industry competition.The growth of J Company is also a microcosm of the industry development which may provide references for other companies in the industry.