The Research Of DDJC Company For Competitionstrategy Of Software Outsourcing

In this thesis we used Harvard University Professor Michael Porter's theory of competitive strategy and corresponding tools to analyze the market structure and DDJC's competition strategy. And based the analysis we tried to help DDJC to find a Blue Ocean in software outsourcing industry.First of all, we briefly introduced the definition and classification as well as the incentives and constraints of software outsourcing. Through the analysis of the current situation we tried to discover the globe trend of software outsourcing industry.Secondly, this thesis described the company's background, organizational structure and main business areas. We analyzed the current situation of DDJC's software outsourcing unit, and found the problems which exist in the company. On one hand, we found the company's target market was application software outsourcing. Then through the analysis of the industrial structure, we came to the conclusion that company's competition strategy was stuck in the middle. Afterward, based on SWOT analysis we discovered that DDJC's core competency was R & D capability of embedded system, and then we conducted an industry analysis of this niche market. Finally this thesis drew a conclusion that the company should use cost focus strategy in the embedded software outsourcing.Thirdly, through a value chain analysis we found the company's core value activity was embedded system R & D, key value activities were project management, marketing and human resources management. Based on this conclusion this thesis gave some recommendations to DDJC's senior management team: pursue a proactive marketing strategy; adjust the organizational structure to reduce labor costs, improve career planning; introduction CMM certification, strengthen project management; enhance two-way communication and establish communication mechanism.We hope this research will be beneficial to Chinese software outsourcing companies.