Research On The Development Strategy For KB Company

As a private-owned small-sized enterprise, KB company specializes in the production and sales of inorganic chemicals, with a total staff of 7 and one products warehouse. Taking advantage of its flexibility, KB maintained ideal sales achievement within the first five years after its founding. However, inorganic chemicals industry is a capital-intensive industry with lower criteria to enter, resulting in high level of homo-junction and intensive competition. How to develop itself with proper development strategy becomes KB's most crucial factor to succeed in the competition. Thus, the thesis plays critic role in KB's development.The thesis focuses on the study of KB Company, on the basis of strategic management and OB theory, takes advantage of PEST analysis, SWOT analysis and five-force model, trying to analyze the inner and outer environment and operation situation, making clear about the opportunities and threat of KB, searching the problems, choices and setting of its development strategy. Hopefully, the thesis will provide certain assistance to KB.After analyzing from different aspects, the author believes KB should adopt W+O changing strategy, after which the following functional strategies are put forward.1. specialization and core-competition; 2. broadening the sales channel; 3. proper positioning to itself. On the basis of these functional strategies, the thesis puts forward certain approaches to improve the competitiveness and integrated capacity through the construction of company culture, perfection of inner communication and stimulus systems, informing the organizational structure.