Studies On Competition Strategy Of Huafu Top Dyed Melange Yarn Co., Ltd

Huafu Top Dyed Melange Yarn CO., LTD (Stock ID:Huafu,002042) is a manufacturer and supplier of new and high quality yarn founded in 1993 and headquartered in Shenzhen, China. After 16 years'development, Huafu has become one of the biggest enterprises of dyed melange yarn. In the background of economic globalization and more fierce competetion, the problem of adjusting the company's resources and capacity to the ever changing business environment so as to achieve a sustainalbe and healthy development is a worthy research topic.In this paper, the author combines western strategic management theory with practices of Chinese companies, and takes the prospective planning of Huafu as guideline. On the basis of data and written materials obtained from surveys, the author studies the development strategy of the next five years with both qualitative and quantitative means, theoretical and practical approaches. The paper first introduces strategic management theory and the general information of the company. Next the paper evaluates the inner and outer environment of the company with such methods as PEST, Five-forces Model, EFE Matrix, SWOT analysis, etc. On the basis of such evaluations, the author considers various factors that might influence the company's competition strategies, proposes a plan for the company's general competition strategy, and further analyses the means to establish core competitive forces of the company. After that, the author gives advices on how to guarantee the effective operation of the competition strategy through adjustment in management structure, company innovation, marketing tactics, business culture, etc. The paper also predicts possible risks in operating the competition strategy and raises advices on precautions.This paper is an empirical study on the company strategy of the dyed melange business. Through this study the author hopes to establish and push forward the unique competitive edge of Huafu Top Dyed Melange Yarn CO., LTD, and at the same time provides reference for other regional, professional companies seeking for competion strategies.