The Product Portfolio Management And Strategic Option Of Foretide Machinery Manufacturing

Jointly founded by Huatian Industry Holding Group Co,Ltd and Changsha Sunfine Investment Co,Ltd in August 2003,Foretide Machinery Manufacturing Co,Ltd was engaged in developing and manufacturing bulk material handling system such as stacker/reclaimers,tube pipe conveyors,shiploaders and shipunloaders etc.It was in the upsurge of the last economic cycle that Foretide was set up,but then Foretide had to face the regulation of macroeconomy,which derectly exercise a great influence on the scale of investment of Foretide' s customer industry and intensified the competition among the industry.The divergence among Foretide's shareholders and strategic cooperation partner(KOCH) result in the difficulty in circulating funds and made the cash flow intensified.Meanwhile,the inner resources of Foretide and the ability to utilize these resources was in a weak position,which derectly threatened the healthy and rapid growth of Foretide.According to the business dilemma and on the foundation of consulting date,the thesis applied the theories and methods relative to strategic management to analye the industrial competitive structure and Foretide's relatively competitive status from analyzing Foretide' s strategic position and product portfolio management.Meanwhile, according to J · Barney's Resource&Competence theory,the thesis applied Barney' s VRIO analyzing frame to describe objectively Foretide' s inner resources and competence.From analyzing the inner and outer environment of Foretide,the thesis explored all the possibilities of Foretide's business strategic options.The author expected to make an useful probe on how a newly formed enterprise to establish sustainable competitive advantage in a structural industry without exceeding its own limits of resources&competence.