Feed Processing Industry Development Strategy

The Research on Developing Strategy aboutFood Processing EnterprisesManagement Science and EngineeringPostgraduate Student: Yang YiSupervisor: Song WeiEach industry has its own productive and operative activities, so products or services supplied by them has their own utility, and different industries need put into production elements in different proportion. So that they need different natural resources. Which brought about some industries called labor-concentrated industry. Capital-concentrated industry technology-concentrated industry and knowledge. Concentrated industry. Chinese food-processing industry is a typical labor-concentrated industry, which has developed especially in the past 20 years. However, it is faced with huge challenge. Food industry's output is twice as that it sells per year, therefore a lot of food-processing factories are at low profit or at loss. But in theory the ability to develop our food-processing industry is still far away from world average level. Our food-industry entered mature period too earlyL] as a result, there is keen competition in the area. Strategy to develop firms is divided into 3 levels, i.e. general strategy, operative unit's strategy level tries to conform to firms' organization strategy and power level. In order to confirm that duty equals to power. The article analyzes briefly the present conditions of Chinese-food processing factory: mature period, low in barrier and low out barrier, low profit and hot rival. What more, it analyses growing up experiences of several typical domestic food-processing factories including: New-hope Group, East Hope Group and Tongwei Group. At last, the article concludes two strategic directions as to escalate the follows: mix-unify and consumer unify' strategy industry. If advantageous firms hope to develop for long in the area. They have to change the conditions of the area, for example, they may raise the technology content of products in order to raise the threshold of food industry and cut down potential rivals. They also can lessen existing rivals by crosswise unify, and change the industry from the state of dispersed competition to confronting state. 2. To enter the other industries (diversifying strategy). Advantageous firms may put the accumulated fund gradually into other industries, which may bring about more. Repayment, at the same time, in the pressure of competition the industry is reduced, the operative risk is diversified. While the firms not having enough power will be at greater risk if they adopt this strategy.