The Research On Main Products Development Strategy Of Hunan Wananda Group

Wan-an-da Group Corporation of Hunan covers mainly four products, that is, Lingfeng Trailers, Xinyuan Cylinders, Changxing Clothing and Jianlang Medicines , each with an annual sales income of over 50 million yuan . By Boston matrix chart, Lingfeng Trailers and Changxing Clothing are between Star Business and Cash Cow Business operations, Xinyuan Cylinders is Star business, and Jianlang Medicines Question Business. According to Porter five-forces model, Lingfeng Trailers is in a relatively favorable position in the fierce market competition, with its bargaining power of customers strong for some products and moderate for the others, relatively weak threat of substitute products and new entrants. Xinyuan Cylinders has a very favorable position in the industry competition with its suppliers having a general bargaining power while its customers not a strong one; and recently no major threat neither of substitute products nor of new entrants. Changxing Clothing does not face a fierce competition with its suppliers' bargaining power restricted and that of customers not strong, and there is no threat of substitute products and small threat chances of new entrants. Jianlang Medicines occupies a weak position in the fierce market competition; some suppliers and all customers have strong bargaining power , and there is realistic threat by some alternative products and new entrants.This paper holds that Lingfeng Trailers has a strategy of costs priority; through reducing management costs, operating costs and quality costs, it can become a leader in its industry. Xinyuan Cylinders is suitable for the implementation of scale expansion strategy that raises funds through various channels, seeks technical support of higher levels, protects personnel resources and publicizes its brand reputation, in order to achieve further development. Changxing Clothing is suitable for the implementation of a business strategy classifying markets, gathering its target segments , relying on its cost advantages, strengthening market expansion, and extending the depth and breadth of product services so that it can be more successful than it is. Jianlang Medicines is suitable to implement a strategy of timely-giving-up; it should control its new investments, and make profits as soon as possible by the oil-extraction method; when circumstances permit, it ought to sell as a whole package or seek foreign joint ventures and cooperative management.