Smes In China's Development Strategy - Yy Winery Case Studies

Rich evidence from other countries shows that small and middle-sized enterprises (here in after refers to as "SMEs") play key roles in pushing the economy growing and keeping the societies in order. They function as a powerful impetus for economic growth, as an important source for technical innovations, and as an intangible hand for social stabilization by providing mass employment opportunities. In this paper, the author tries to provide some practical references for other SMEs by analyzing the case of the Grace Vineyard Company.The main analysis of the case is based on Michael Porter's Competitive Strategy theories and David Yoffie's Judo Strategy theories. The competitive strategy includes four main facets: five forces of the industry, three basic competitive strategies, implementing risks, and the source of the competitive advantage, while the Judo Strategy offers three action rules for SMEs to win the battles against big companies. The three action rules refer to moving, balancing and leveraging. The author summarizes the core aspects of these theories and uses them as a base for analysis of the Grace Vineyard case in point.The Grace Vineyard Company is a family entity whose headquarters is located in Hong Kong. Established in 1997, the company has met and overcome major problems such as formulating strategy, positioning, financing and organizing in the past few years, to name just a few. In reality, such issues bear much resemblance typical of many SMEs, which have to be raveled out in their growing process. Based on plenty of rich data from the wine industry as well the wide opinions of senior executives and professionals both within and outside the wine industry, the author analyzes the status quo of the wine industry in China by using the standard questionnaires and summarizes the key success factors of the wine industry. With the analytical tool of SWOT matrix, the author proposes the implementation strategies for the Grace Vineyard Company.For lack of sufficient time and data, this paper is limited in its depth and width for illustrating an entire wine industry in China. However, the author sincerely hopes that this paper sheds some lights on further research in this field.