Shandong Silk Square Textile Co., Ltd. Development Strategy

Textile industry has been the pillar industry of China, and textile companies are theimportant forces of national economy. Now China is the biggest textile productioncountry in the world and its proportion in Nation gross value of industrial output is 15%.But recent years the individual demands for textile and non-customs duty trade barriersmake the textile companies confront harsh competition.Shandong Bofine Corporation is a textile enterprise developed from the fourth cottonmill of Shandong. In 2001,the company set up modern enterprise system, and since then,it has developed quickly by reforming system, strengthening the management,introducing the advanced technology, perfecting marketing mechanism and so on. But inrecent years its competition status is worse than before. The paper analyzes the interiorresources and exterior competitive circumstances of the company, and gets rid of thedifficult position by proposing the developing strategy of the company.This paper adopts SWOT as analysis method. First, analyzes circumstances whichBofine confront, including macroscopic circumstances and microscopic circumstances,and then determines opportunities and threats. Second, the paper declares strengths andweakness of Bofine through analyzing interior resources of the company. Third, based onthe above analyses, the paper designed total developing strategy of Bofine. That is, Thecompany should introduce advanced technology to improve the structure of products, andimplement the low cost strategy, go into the fields of international business, execute thedevelopment pattern of vertical integration to broaden industrial chain. The companyshould enhance the core competence by strengthening the key parts including productstructure, marketing, internal management, the well-known brand, enterprise culture.Fourth, the paper proposes the guiding principles, goals, steps, and means&measures ofthe strategy. Finally, conclusions of this paper are made.