| As for today's globalized economy, only those enterprises which can react swiftly to change will get competitive edges over others. This thesis tries to apply the SWOT Analysis Frame work, the Triangle Analysis, the Analysis Model of the five Basic Competitive Edges .etc to analyze the process of the problem solving in Sichuan Chengdu General Wool Factory (SCGWF) though retrenchment and expansion Strategy successfully. When it encountered great obstacles of materials shortage, terrible decrease in production and difficult situations. And the author submits his point of view on how the enterprise under present competitive circumstances, should readjust their strategies and launch the concentric divercification strategy when facing new changes.SCGWF is a typical state-owned enterprise. Which has many similarities to many other state-owned enterprises both internally and externally.The study of its strategies will enlighten us to settle the problems of how to compete with other state-owned enterprises ,adapt to changes and achieve developments.This thesis falls into five chapters. First, it analyzes the reason why SCGWF got in trouble before 1992 and how it got out of trouble by launching retrenchment and expansion strategies successfully, by means of SWOT Analysis Frame work. Second, through triangle analysis it analyses and appraises the present strategy of the enterprise and point out that SCGWF should launch concentric diversification strategies, and which the enterprise specifically adopts. Last, from the perspective of the eternal operation of the enterprise, it points out that adjustment to constant innovation is dispensable if it wants to create competitive edges and keep sustainable development. Only in this way can the enterprise grasp chances and win initiatives among competitions. What is original of this thesis lies in that it insists on the principle of combination of theory and practice, it applies all the strategic management knowledge to the specific enterprise, it thoroughly analyses SCGWF's strategic adjustment and submits particular points on the basis of the enterprise's character, It is workable. |