An Empirical Study Of Value Innovation Model By St. Allen Ltd.

Over past 30 years of reform and opening to the outside world, China' s economy is opening up more, while the market is getting more competitive. However, during the rapid economic development, the excessive production capability makes supply exceeds demand. In addition, the problems such as similar industrial structure and single product mix have arisen. Consequently, by using competitive price, the enterprises jostle against one other for the limited market. Facing such fierce competition, many enterprises have been starving for innovation to achieve the room of growth and driving force of development. Unfortunately, compared with a big enterprise, the small and medium-sized enterprises can hardly use traditional innovation methods to do so, due to the limitations of the funds,personnel,technology,scale and administration of their own. Hence, in both theory and practice, it is a significant subject that to explore an innovation pathway suitable for a small and medium-sized enterprise.St. Allen. Limited Corporation is a typical small and medium-sized manufacturing enterprise in Zhongshan. What it is manufacturing and selling are nail clippers, so called "sunset product" . Over past years, this company has achieved great developmental opportunities and dynamics. Thus attracts the attention of experts and scholars in innovation management nationwide. Herein, to find out a new way of self-renovation that can be learned by other small and medium-sized enterprises, St. Allen. Ltd. Co. is studied in this article, and its innovation model is analyzed in detail. Based on this study, we are trying to answer the following questions: 1) How to use the latest theory of value innovation developed abroad to let the small and medium-sized enterprises get a better and faster growth? 2) For the small and medium-sized enterprises in our country, what value innovation model is provided by St. Allen Ltd. Co.? 3) Is that model useful in practice?The structure of this paper is as follows: First, some questions are posed; Second, theoretical bases are introduced. The traditional technology innovation is reviewed, and then the "Blue Ocean Strategy" and the value innovation encapsulated are elaborated. Based on that, the starting point is set up; Third, early development, strategic shift and current status of St. Allen Ltd. Co. are described respectively in the order of time; Fourth, the value innovation model of St. Allen Ltd. Co. is compared with the theory of "Blue Ocean Strategy" , based on five aspects including customers' source, customers' value, customers' price, company' s cost and company' s action; Five, the application of the St. Allen model on small and medium-sized enterprises in our country is discussed; Finally, this article is summarized.