Strategy Research On Large Plasma Products Business

This thesis first introduces the general situation of domestic and foreign plasma product industry.Then,it compares the three major trends of foreign plasma product industry with the five major trends of domestic plasma product industry.Three major trends of foreign plasma product industry are:1)frequent global mergers and acquisitions;2)exploiting the markets in developing countries;3)higher spending on R&D.Five major trends of domestic plasma product industry are:1)expanding market demand;2)fierce competition for plasma collection centers;3)R&D capabilities decide market position;4)intense competition as foreign tycoons piling into domestic plasma product market;5)frequent mergers and acquisitions.Chinese plasma product companies are faced with the opportunity of soaring domestic market,as well as threats from persistent rising cost,fierce competition for plasma collection,intense competition from foreign tycoons,national policy tending to integrate domestic plasma product industries.Based on the comprehensive analysis of foreign and domestic plasma product industry,this thesis takes the typical state-owned plasma product company--Tiantan Bio as an example to conduct strategy research.Starting with the general situation of Tiantan Bio,this chapter gives systematic analysis on both external and internal environment.For the external environment section,firstly,it analyses the macro environment of domestic plasma product industry from four aspects by using the basic tool for strategic analysis--PEST.Secondly,it analyses the market environment of Tiantan Bio from five aspects by using Michael Porter’s Five Forces Model.Finally,with the help of EFE matrix,it comes out with the conclusion that Tiantan Bio shows robust response to external environment.The macro environment is conducive to the development of domestic plasma product industry.Besides,large companies like Tiantan Bio are not faced with fierce competition.For the internal environment section,it detailedly analyses the internal resource of Tiantan Bio from six aspects: operation,R & D,plasma collection,production,sales and quality control.Then,it illuminates five of the nine core competencies proposed in Tiantan Bio`s annual report.In the end,IFE matrix is used to draw the conclusion that the internal condition of Tiantan Bio is at a disadvantage.In the next chapter,by putting the quantitative data of SWOT from the EFE matrix and IFE matrix into the coordinate system to conduct a strategic quadrangle for Strategic positioning,Tiantan Bio should take SO strategy which includes expansion strategy and strengthening strategy.First,expansion strategy analysis.For the highly specialized plasma product industry,it should adopt integration strategy instead of diversification strategy.In the first place,due to the Chinese government policy,all plasma collection centers are acquired by plasma product companies,which is a kind of forward integration belonging to vertical integration.Besides,by implementing the horizontal integration strategy,plasma product companies can rapidly expand their scale and reduce competitors.Then,in the section of strategy implementation,this thesis analyses two typical M&A and reorganization cases of Tiantan Bio,as well as gives suggestions on potential takeover target screening.Second,strengthening strategy analysis.The strengthening strategy can be classified into three categories:1)market penetration strategy,such as expanding sales channels or reducing production costs.2)market development strategy,such as discovering new indications of established products or exploring overseas markets.3)product development strategy,establishing a comprehensive product R&D pipeline which combines short,medium and long projects.In the strategy implementation section,this thesis analyses the real actions taken by Tiantan Bio:1)enhancing productivity and reducing costs.2)establishing new facilities to increase capacity.3)differentiating and enriching product portfolio by innovation.4)international operation and overseas market exploitation.In the end,it conducts strategy control by Balanced Score Card whose indicators were chosen according to the characteristics of plasma product industry,as well as auxiliary methods like risk control and talent cultivation.By comparing theory with practice,this thesis detailedly analyses the strategy of Tiantan Bio,which has practical guiding significance for the domestic plasma product companies.