The Research Of IPCE Strategic Management Based On Sustainable Competitive Advantage Theory

Research Institute of Physical and Chemical Engineering of Nuclear Industry (Hereinafter referred to as IPCE) is a chief institute for defense works belonging to the nuclear industry system. In the 1980s, abiding by the policy of "combining defense industry and civil products enterprises, mainly focusing on nuclear industry, constructing multi-business operation, so that to reinvigorate the economy" of the Chinese Nuclear Industry, IPCE began developing civil products. In the past more than twenty years, IPCE has development the three key products of Cereal Milling Machinery, Sodium Monofluorophosphate (SMFP), and Specialty Gases and has achieved outstanding results in all aspects.Whereas with the deepening of market economy in China, some advantages of the early years has been weakened, and some problems were exposed step by step in the operation process. The development strategy of IPCE becomes the pending issue demanding a immediate solution. This thesis, combining the reality of IPCE, adopts the methods of theory reflection and case analysis, and studies the development strategy of IPCE from the angle of acquiring and enhancing sustainable competitive advantage.In the first part of this thesis, the author analyzes the general background of the conversion from defense to civil enterprises in the nuclear industry system, then concludes the history and current situation of the three key products, which consists of the basis for strategic analysis. In the third part, based on reviewing and reflection of the framework of classical strategy theories and then analyzing a typical case, brings out a new research framework for sustainable competitive advantage — the model of strategy sword. The fourth, fifth and sixth parts of this thesis are for empirical study and analysis. Taking the materials of empirical study as a basis, the author makes a thorough study of the five factors involved in the model of strategy sword — strategy positioning, strategy principle, resources integrating, speed and quality, combining which with the development of the civil products of IPCE. Thus the author concludes the main idea of the thesis: sustainable competitive advantage comes directly from effective system resources integrating focusing on the systematic activities of the organization, and resources integrating should be completed with the guidance of unique strategy positioning and clear strategy principles. In the process of resources integrating, speed and quality are the sources of operation efficiency of the organization as well as the key factors that affects the validity of resources integrating. In the seventh part of this thesis, the author brings up the future development strategy of two levels of IPCE by applying the model of strategy sword. One is the integration of the overall strategy and resources of IPCE, the other is the establishment of competition strategy and development direction for the three key products in order to acquire and maintain sustainable competitive advantage, while emphasizing speed and quality of operation is of vital significance in the process of resources integrating.