Differentiation Strategy, Service-oriented

In today's world, the competition on the market is increasing drastically and the management strategy is critical to the enterprise's survival and development. A suitable strategy would bring great profits and rapid development to the enterprise, otherwise, an inappropriate one would kill it. Therefore, the competitive strategy of an enterprise is the key to its success. This paper, by the comparison among the three basic kinds of strategies initiated by Michael Porter, comes to the conclusion that diversified strategy is the one most suitable to the enterprise's development. The paper conducts a systematic analysis of the product-diversified, technique-diversified and brand-diversified strategies presently applied in Chinese enterprises and i dentifies, t hrough t he c omparison and a nalysis a mong t hem, that none o f t he t hree i s suitable for the current Chinese market conditions and that the service-diversified strategy is the very one most ideal to the development of Chinese enterprises. Then the emphasis is laid on the major problems existing in the service measures taken by Chinese enterprises, such as the overemphasis on the clients' demand, the oversupply of services affiliated to the products with the neglect of the servicing cost, the decrease of the profit-earning ability of the enterprise, the neglect o n the products' quality while overemphasizing on the s ervices, the neglect on the needs of employees who are the service providers while paying too much attention to clients' demand, and the loss of opportunities to improve the products' quality because of the wrong understanding of the relationship with suppliers and distributors. The final part put forwards some suggestions for Chinese enterprises to improve based on the above-mentioned problems, such as to increase the service level based on quality and rooted in fiduciary, to provide the combined services according to the clients' needs and set the proper prices for them, to set up the service thoughts of the whole staff, taking whom as clients, and to establish good relationship with suppliers and distributors along the industrial value chain so as to create a kind of win-win situation in which all the parties concerned can not only share the value but also build up the value in a long run.