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Study On The Strategy Of Jilin Yimei Co., Ltd

Posted on:2011-08-18Degree:MasterType:Thesis
Country:ChinaCandidate:H QiFull Text:PDF
GTID:2189360305957376Subject:Business Administration
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Along with the development of the economic and the living standard of the people, the requirement for healthy has becomes higher and higher. people are not content with seek medical treatment when they are sick. The rapid development of health-care market will become a kind of inevitable trend in the future. This brings opportunities for undertaking and development of small enterprises in health industry. It is very hard for Jilin Yimei Co., Ltd to survive and develop well in the intensively competitive health care industry. Hence, Jilin Yimei Co., Ltd needs to design the entrepreneurial strategy and business model on the base of scientific theories for the development of the corporation.The study of entrepreneurial strategy involves two important dimensions: business and strategy. These two dimensions forms independent academic research fields respectively. But the business management has countless ties with strategic management . In the 2080s, a large number of scholars, most of whom are from the strategic management field turned to the field of business management research. It was at that moment that the business management emerged as an independent academic research field. Therefore, some scholars believe that business management branches out from strategic management and even consider it as the strategic management process of the new start-ups or existing businesses to restart. Therefore, the theoretical approach and framework of strategic management can be used to study the entrepreneurial strategy.Traditional strategic management thinking is based on competition. Because it grows in the background of the economic development under which the competition mitigates and the economy develops. It is very difficult for the enterprises to step forward with the rapid development of new technology and the escalation of the global integration of economy. Therefore, the start-up companies must develop new strategies and new ways to face a more complex environment in the future. By crossing over the border of existing competition, avoiding tough competitive element, seeking the valuable elements of innovation, Blue Ocean Strategy with all its strength makes the value of the purchasers and the enterprises increasing, occupy new space in the market which nobody can dominates, and get rid of the competition completely, opening a new Blue Ocean road. So Blue Ocean Strategy can be used to constitute a brand-new Blue Ocean Strategy and business model for Jilin Yimei Co., Ltd. as the research and planning methods of the entrepreneurship strategy.The Blue Ocean Strategy should be designed on the basis of the analysis of internal and external environment of Jilin Yimei Co., Ltd. External Environment Analysis is the analysis of various factors which compose PEST analysis including:social, cultural, demographic, environmental factors; politics, government, legal factors and technical factors and the analysis of health care industry with Porter's Five Forces Model. At present, our country is developing rapidly, and playing a more important role in the world. The domestic environment is quite suitable for the carving out and development of the enterprises. Our country will strengthen the regional economic development and regulate the economic restructure in the future.In 2009, the issue of the construction of Changchun-Jilin-Tumenjiang Regional Development and Opening-up Pioneer Zone, the expansion of the tertiary industry construction and the strengthening of the people's livelihood and social undertakings field and support of social security make for the development of the health care industries of the people of Jilin province. The Development of economy, stability of the society and improvement of living standards makes people's requirements for health and life quality higher and higher. However, China's medical and health care stays at a relatively low level, and there's still much space in disease prevention and control, health care, rehabilitation, health education and management. The new medical reform program issued by the government in 2009 clearly states: The community-based system of urban medical service should be accelerated. Meanwhile, The need of people for the safe and potent health care becomes more and more urgent. The government takes charge of health care food stringently. Traditional Chinese medicine has a long history, and receive people's great acceptance in view of health care and preventing and curing disease, due to its unique idea and nonpoisonous calm function. The Government also encourages the development of herbal health products. Although the health food industry in China has great potential, there exist quit a lot of problems: emphasizing propaganda, neglecting research, high cost, no customer service system, short life cycle and so on. larger threat brought by the potential entrants and substitutes. Jilin Yimei Co., Ltd. is mainly engaged in dietary herbal medicine which is accord with the consumers'demand. The corporation is accomplished in research, but lacking of funds. So, it needs to find a new business model to achieve the rapid expansion with low cost, high efficiency.Blue Ocean Strategy is unique formulation of strategic development which is different form the traditional strategy. To constitute Blue Ocean Strategy for Jilin Yimei Co., First of all, to find the valuable elements of intensive competition by the strategy canvas of the industry which includes the bombing of a high advertising; high input marketing channels for building; vigorous promotion; making a lot of marketing concepts; upgrading the product constantly; paying attention to the propaganda of the efficiency in order to bring comfort to the consumers etc. What's more, to find value elements of innovation that the consumers attach much importance to by breaking through industry border in six different framework of tools: personal health guidance, health knowledge, self-awareness of health, the physically and mentally healthy activity, convenient, safe and effective health product, as well as the high quality needs for health. Then using "removing - reducing - increasing - creating " coordinate grid to remove the competitive elements, reduce the elements that customers do not need but used for the competition; increase the element of industry that consumers have to compromise; and create the new elements for the purchaser's profit, so as to establish the new value curve for Jilin Yimei Co. It is a Blue Ocean Strategy which states putting community health club as a carrier, using intensive health theories of Chinese traditional medicine and modern scientific and technological method, providing the effective products for human health, offering the health service that people really need, establishing the brand with the public praise. The implementation of Blue Ocean Strategy is the constituting of business model and specific sequence of blue ocean strategy, that is, in the order of the buyers'utility, pricing, target cost planning and how to be accepted by the stakeholders. The buyers'utility means there are enough persuasive reasons for the public to buy products or to receive service. The products and service offered by Jilin Yimei Co., Ltd includes: preparing a professional health advisers for the members, providing medical examination services, giving health lectures, establishing health records for the members, providing the members with favorite leisure activities and providing medicated diet taking food as carrier. It is necessary to determine the right strategic price for Jilin Yimei Co., Ltd with an affordable tool for analysis of the corridor to maximize profits and be accepted by the consumers easily which is propitious to the price development of this company. In order to guarantee the profits, it is necessary to confirm the goal of cost on the basis of strategic pricing. The increment and devalue could be seen through the value chain analysis. From cost management of the value chain, the basic activities and support services include: production and order management, marketing, services, procurement, research and development, organizational structure and human resources management, management information systems. All these could reduce the cost in the health clubs of Jilin Yimei Co., Ltd. In order to ensure the innovative strategy and business model successful, it needs to build strong brands to remove the obstacles in acceptance of the stakeholders namely, consumers, employees and partners, and society which make it possible for Jilin Yimei Co., Ltd to survive and develop under the direction of Blue Ocean Strategy.This paper uses Blue Ocean Strategy of strategic management theory as the research and planning methods of business strategy to design a business strategy and a business model Jilin Yimei Co. Ltd. combined with the new business venture and internal and external environment of Jilin Yimei Co. Ltd. This could not only put Blue Ocean Strategy theory into practice, but provide a scientific orientation for the entrepreneurial strategy of Jilin Yimei Co. Ltd.
Keywords/Search Tags:Entrepreneurial Strategy, Blue Ocean Strategy, value innovation
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