L Strategy

At the beginning of the opening of China, only big Western companies and fortune 500 companies, such as Siemens and GE, came to China for business development. Things change a lot from the end of 20^th century to at the beginning of 2000. More and more medium and small-sized companies including label companies set up their companies and plants in China. The main reasons they came to China are providing the local products and service per their customers request and reducing the product cost. With their coming in and local companies growing up, all industries become over competition. For a new comer to China market, he has to think it over and make the right strategy to survive the competition.From last century 70's till now, the label industry has developed to a mature industry. Meager profit and slow growth force all label companies to focus on live, and then gain the advantage to consolidate and expand the market. On the basis of this situation, we will research L company, a medium and small-sized enterprise of US label industry, and discuss the Strategy Management of L company in China.The structure of paper is as follows: firstly, we tell the story about L company and find the problem L has. Then, we scan the macro-environment with PEST and industry with Porter's Five Forces Model to understand the development of label industry of China; then, SWOT analysis will be used to evaluate competitive advantage of L company; lastly, based on the analysis, we find out the development strategy of L company in china. On the basis of considering globalization, difference strategy and supply chain, suggestion will be given to enhance the competitive advantage of L company. Hope that other companies of this type can gain some valuable reference from this paper.