The Hd's Development Strategy

Since the 21st century, with the rapid economical development, China has developed the national economy persistently and fast, markedly enhancing the comprehensive national strength. China is developing into the world manufacturing center, along with the development of market economy, advance of reform and opening-up and transformation of industrializing process into deep process. Therefore, many international manufacture corporations have entered into China market for its huge market scale and excellent investment environment, and rapidly rising private enterprises have also accessed to the market competition. Facing the increasingly drastic market competition, HD Company, as a major manufacturer of hydraulic components in China, had experienced the strategy planning of the "10th Five-year Plan". The future strategy selection of a company decides the survival and development of it in the market competition, which is also why this paper researches on the future development strategy of HD Company.Applying related theories and methods of the strategy management, this paper had instituted the development strategy of HD Company on the basis of conscientious analysis on the strategy, and made an exposition of the strategy implementation measures and strategy controlling methods according to the implementation conditions of the selected strategy. This paper analyzes the external environment of HD Company with the PEST model theory; dissects the industrial status of the company and situation of rivals by using the Michael Potter's five-forces model; examines HD Company's owned resources and strategy management capability by utilizing the capability resource theory. Finally, the paper orientates the development strategy of HD Company as the market penetration strategy by using the SWOT method and combining the Grand Strategy Matrix, establishing the implementation measure of the company strategy by combining the requirements of strategy implementation, expounding implementation and control steps and methods of market penetration strategy, and putting forward the suggestion of carrying out strategy adjustment in the principle of contingency on the occurrence of major changes in strategy implementation conditions. In addition, as wished, the research on the HD Company's development strategy in this paper can offer some thoughts and methods for industrial managers' reference in the strategy management.The innovation of the paper is adopting the method of empirical research and combining the strategy management theory and practical works to establish methods and approaches of combining theory and practices through establishing the future development strategy for HD Company.