Research On Competitive Strategy Of Chinese Tobacco Enterprise Based On Value-net

The tobacco industry is a special and important industry of the country and it plays an important role in the economic development and people’s lives. The tax paid by tobacco enterprises takes an important part of the state revenue. Because of the special administrative controls, the tobacco industry is monopolized by our country, which guarantees the state revenue but also affects the development of tobacco enterprises. In China, tobacco enterprises are large-scale and have many brands of cigarettes, but these brands are scattered and have less competitive. China is the world’s largest tobacco production and sale station. with China’s accession to the WTO, the domestic tobacco market is gradually opening up to foreign tobacco companies, so for the global tobacco enterprises, China’s tobacco market is their coveted battleground and the domestic tobacco enterprises are facing increasingly fierce international competition. Therefore, enhancing the value of the cigarette brand, improving the competitiveness of Chinese tobacco enterprises, and ensuring the current monopoly in the domestic market, even a place in foreign markets, are the major issues that the domestic tobacco enterprises are facing.With the rapid development of the Internet and information technologies, and the accelerated pace of world economic integration, enterprises in China are facing increasing pressure from global competition. At the same time, the social division of labor is more and more professional, individual company has been difficult to deal with the increasingly fierce competition. Value-net theory puts the operation of enterprises in the modern network environment, and it takes a practical system thinking of the supply chain theory from a higher level. With the chain thinking elevated to mesh thinking, Value-net theory centers about the customer and makes the members in value-net cooperate well to achieve value creation and to better meet customers’ unique needs. This theory provides a good theoretical basis for enterprises improving their core competitiveness in order to gain a competitive advantage. This dissertation takes tobacco enterprises as the research object, applies value-net theory to the tobacco industry, analyses the formation mechanism of tobacco enterprise value-net, builds the tobacco enterprise value-net and researches the value creation and income distribution mechanism of tobacco enterprise value-net. At last, this dissertation proposes the tobacco enterprise competitive strategy based on the theory of value-net and discusses implementation strategies of the tobacco enterprise value-net. The whole dissertation is divided into nine chapters.Part one is the preface. From the current development situation, difficulties and contradictions of the tobacco enterprises, the author analyses that improving the competitiveness is an important issue of tobacco enterprises. Based on this background and combined with the characteristics of the tobacco enterprises, the author proposes tobacco enterprises to apply the value-net theory in order to improve their competitiveness. In this part, the author also reviews the research situation of tobacco enterprise competitive strategy and value-net theory, and introduces the main content, research methods and technology roadmap of the dissertation.Part two is the theory of value-net. The author first analyses the value chain theory and its challenge, and then does a more comprehensive study of a new enterprise business model:value-net, including its formation, definition, model composition and core concepts. At last the author compares the differences between the value-net and value chain.Part three is the formation mechanism of tobacco enterprise value-net. The author selects the specific object:the tobacco enterprise, then starting from the history and current status of the tobacco business development, the author uses SWOT to analyses the advantages, weaknesses, opportunities and threats of tobacco enterprises. The author also analyses the necessity of tobacco enterprise value-net in the aspects of macroeconomic policy, economy environment and international competition.Part four is the construction of tobacco enterprise value-net. The author indicates the five elements of value-net design:the value position, range, strategic control, profit capture and value-net implementation. And combined with the actual situation of the tobacco enterprises, the author constructs the tobacco enterprise business model based on value-net theory, analyses the components of tobacco enterprise value-net, including customers (the cigarette consumers), cigarette retailers, tobacco industry enterprises, tobacco commercial enterprises, tobacco farmers and suppliers. Tobacco enterprise value-net also has some characteristics, such as consistent with customers, cooperative and systematic, agile and scalability, rapid mobility and reaction, digitization and networking.Part five is value creation and income distribution mechanism of tobacco enterprise value-net. The author analyses the competition and cooperation of the members in the tobacco enterprise value-net and studies the value-added process and mechanism of tobacco enterprise value-net from the aspects of customer needs capture, value position chosing, resource integration of value-net and the satisfaction of customer needs. Using game theory methods, the author studies the game relationship between the tobacco enterprise value-net and its competitors and the relationship among the members of the value-net. At last the author utilizes the Shapley Value method and multi-dimensional method to discuss the income distribution mechanism of members in tobacco enterprise value-net.Part six is tobacco enterprise competitive strategy based on the value-net theory. Based on the above five parts and according as the business mode of tobacco enterprise value-net, the author proposes the tobacco enterprise competitive strategies based on Value-net Theory. The strategies include:to strengthen cooperation with tobacco farmers and establish cigarette industrial enterprises demand-oriented raw material guarantee strategy; to strengthen cooperation with cigarette retailers and establish the customer-centric marketing strategy; to fully integrate resources and implement big brand and big enterprise strategy; to strengthen scientific and technological research and development in order to continuously improve the competitiveness of cigarettes production; to enhance the enterprise management and perfect the services of tobacco enterprise. The above strategies fully utilize the customer-centric idea of value-net theory, and realize value adding through good cooperation between enterprises.Part seven is the implementation strategy for tobacco enterprise value-net. In this part, the author indicates that enterprises in value-net should enhance cultural development in order to promote the value recognition; strengthen the collaboration of the members in order to establish a win-win thinking; establish a confidence mechanism among the members. From the perspective of information flow of tobacco enterprise value-net, the author builds the tobacco enterprise value-net information resources model, analyses the value added process of tobacco enterprise value-net via information sharing, and by using WSDM system integration technology, discusses tobacco enterprise information systems integration, so as to solve data sharing between various information systems and to provide digital platforms support for the implementation of tobacco enterprise value-net.Part eight is empirical research. The author selects Golden Leaf Cigarette brand as the research object, and analyses the status of Golden Leaf Cigarette brand development from its brand value and growth potential. Based on that, the author indicates that the brand’s value needs to be upgraded, its structure needs to be improved, and its market needs to be expanded, etc. finally, the author give some development strategies for Golden Leaf Cigarette brand.Part nine is the ending. In this part, the author summarizes his conclusions, and proposes his further researches.