Zhongxing Developing Strategy

With 20 years', especially the recent 10 years' rapid development, Chinese motorcycle industry has built up a complete building system and has become the No.1 motorcycle production country in the world. But it has not become the flagship of the motorcycle industry of the world. After a rapid-growth period, the motorcycle industry has now stepped into a mature stage. The decreasing of the demand in the market and the increasing requirement of consumers for the price and the service result in the decrease in earnings of the motorcycle industry, the idling of the productive force, the fierce competition and the comparatively low density of the industrial concentration. The motorcycle market in China today belongs to the type of over-competition market. China's entry into WTO makes China's motorcycle industry face three inexorable tendencies. They are the integration with the global economy, the internationalization of the capitals and the blend of the global industrial chains. China's market is a part of the world market, so on its way from the domestic market to world market, the competition would become even more fierce when the motorcycle tycoons from the foreign countries flow into Chinese market with capitals and technology.Chinese motorcycle enterprises have to make changes and strategies against the background of the fierce competition and the changing environment. The Zhongxing Company is an individually-run enterprise. It develops itself by taking the advantages of the cheap work force, flexible operating system and the efficient policy-making mechanism and the reasonable distribution policy and has now reached a certain scale. But how to think of and choose a suitable strategy to strive for survival and developmentto adapt to the changing environment for this company is the subject of this dissertation. This dissertation designs to work out the best-fit strategy for Zhongxing Company on the basis of the analysis of the domestic and international development of the motorcycle industry. This dissertation selects the strategy-designing theory,the strategy- planning theory and the strategy-positioning theory, uses the methods of PEST,Five- forces model,TOWS,EFE,IFE,SPACE matrix,collects and studies the information of industry policy according the situation of company,thus gives a three-step development strategy for Zhongxing Company to help it build up a strategy-system and develop the competitive advantages. Diagram 1-1 illustrates the strategy making frame-work of the enterprise,including the analysis of the input of the information, the match of the reserved and feasible strategies with the exterior factors, the optimization grouping and decision making steps.