Study Of Growth Of S&M Application Software Companies

Since 2000, China's software industry has achieved rapid development, with an annual growth rate of almost 40%. Significantly improve the capacity of industrial innovation, with independent intellectual property rights of the operating system and database software have been successfully developed, office software, middleware, embedded software, information security software, etc. have a breakthrough. Many software companies rely on technological innovation and competitive advantage and enhance their own ability to withstand market risks, but also improve the whole industry's core competitiveness. However, with software developed countries, the overall size of China's software industry is also too small, industrial independent innovation capability is not strong, the lack of leading enterprises and so long been plagued by deep-rooted problems of industrial development in the international financial crisis, under the influence is more prominent. For many small software companies, it faces an increasingly difficult market environment, management ability is low, unfair division of labor, technological innovation and support, lack of core competencies and so on. How to survive on the basis of the further development and eventually come to the fore a number of small and medium software enterprises are to be considered.This article has been sought in previous theoretical studies based on the use of the research interview, theoretical analysis and case analysis and other methods. Currently small and medium software companies in China are mainly based software services providers, application service providers, system integrators, integrated software services, software outsourcing service providers. Companies under different growth patterns are quite different growth strategies. We discuss the growth strategy of the small & medium application software provider based on Dynamic Capability theory ,including Market competition, organizational management, technological innovation and learning, corporate finance.