A Study On Developing Strategy Of HeBei Sanlu Group Co.

Sanlu Group has already become a large enterprise from a small milk selling artel after more than 40 years' carve-out, including cow breeding, dairy products processing, design and research. The products of Sanlu Group contain 8 series and 136 varieties. The market share of Sanlu powder milk, one of the dominant products, has increased gradually by years. By 2001, it had been continuously dominating the powder milk market in China for 9 years, following by two other major competitive products: the liquid milk of GuangMing milk enterprise and the ice-product of YiLi Group. Since China has joined WTO, facing dramatic market changes, Sanlu Group must adapt to the new environment as soon as possible in the increasingly drastic international and national competition circumstances, keep taking advantage of the product's dominance and developing itself adequately with the new challenges. During the research, firstly, history and actuality of Sanlu Group has been analyzed. Then, based on the strategic management theory, the Sanlu Group's strength and weakness as well as the opportunities and threats facing in the interior and exterior environment have been summarized. At the same time, the time sequence method has been used to forecast the future growth of national milk products industry comparing by growth of Sanlu milk products market share. More over, the comprehensive analysis has been done by using IFE matrix, EFE matrix and SWOT matrix systematic method. The strategic elements in qualitative and quantitative ways have been provided, which is the academic foundation for optional projects. Finally, dynamic quantitative elective method has been chosen to achieve the optimal development stratagem and guidelines from 2002 to 2006 for Sanlu Group. Adopted the framework analysis of the enterprise stratagem management theory, this paper has provided the growth strategy, academic basis as well as action projects for Sanlu Group.