Research On Continuous Growth Strategy Of SANY Heavy Industry Company Ltd.

This paper focuses on SANY Heavy Industry Company Ltd., a very young, rapidly developing company, which is privately operated. By systematically studying the theories of growth of the firm and strategic management, the paper redefines continuous development of enterprises. Based on that, the paper attempts to apply the theory of the enterprises' growth and analytic framework of strategic theory altogether and intend to break through two kinds of competitively advantageous and analytical methods. The first method is the environmental structure theory, which is traditional or static. The second one is a one-sided inner resources theory. It also combines these two methods organizationally. Much of the knowledge is applied, and from a dynamic view, this paper explores the disadvantages of rapid growth and the competitive advantages of SANY so as to ensure that SANY could exploit the advantages, evade disadvantages and develop continuously in the new type of industrial development and changeable environment.According to the thorough analysis of SANY's present developing situation, the author finds that at present SANY is undergoing a period of rapid growth with good competitive advantages among generations. Nevertheless, by analyzing its public financial data over the past few years and its three levels of business chains, that is, key business chains, increasingly current business and looking to expand promising business, the author realizes that it has an obvious sign of lacking sustained developing force because of its' fast expansion speed. So the author concentrates on its' outer existing environment and comes to the conclusion that the main barrier which effects SANY's continuity is that SANY has not formed a key competitive abilityof main business. Based on the study above, the paper puts forward the strategy for SANY's continuous development. Their ultimate goals should be to recognize the balance between actual growth and future achievement and to advance among generations while continuing to increase their value. It also should emphasize the strategy of increasing products and expanding the market and strengthen key business chains. To achieve the objects of SANY's developing strategy, the paper sets forth a upward spiral mechanism which takes concrete machinery as a key business and an organized network as a strong foundation and includes regular management. Besides of these, the company also should use continuous denying and innovation as motivational force to guarantee effective enforcement of the strategy of continuity.