A Ultimate Way To Strengthen The Core Competence Of Luzhoulaojiao

Liquor is one of the symbol of traditional cultate, having lasted for over5000 years. Recently, because of the change of customers needs, the volume ofliquor market has been decreasing continuously For this reason, liquor is calledthe industry Of sundown.But after serious research, we find that there is still large space for liquormanufacturer, especially in the present condition that the whole industry has notbeen developed enough, the leader of the industry has great potentia1 to growgreatly. During this period, it is the best choice for the industry leader to correctlyposition the core comPetence, and conduct expansion through utilize the corecomPetence.Luzhoulaojiao is a famous liquor manufacturer, enjoying good reputation in theindustry. But because of mistake in strategy, it has suffered poor performance inthe past several years. Accompanying with the celltfalization of the wholeindustry Luzhoulaojiao faces great challenge of survival, and good opportunity todevelop oneself as well. How to strengthen the core competence to enable thecompany to get success in severe competition is an urgent problem to solve.Through the analysis of SWOT this study concludes the assumption ofLtaloulaojiao's related diversification method --- restaurant franchise. The studyshows that this diversification can be positive in strengthening the corecompetence, decreasing the risk, getting new economic growth.Correspond with the feasibility study of this diversification strategy, it alsostudies the possible access to core competence, and the strategy- matching,resource-matching, economic benefit, cross-relationship of different industriesduring diversification.