Basic Education In China's Software Industry Development Strategy

Based on systematic analysis on Chinese fundamental educational software industry with strategic management theory, this thesis will try to discuss industrial status and developing strategies.Aiming at assistance to Chinese fundamental education, the fundamental educational software industry develops products and supplies service to schools, educational institutes, teachers, students and their parents. This industry has complete product line and increasing market demands. The personal demands are stronger than institutes and will lead the developing trend despite of huge regional diversity. The intellectual property protection is another important issue in this industry.With strategic environment analysis on educational software industry, we can conclude the following points. For external environment, the government supports to develop educational modernization, and rapid growing economy keeping enhance the national power. Chinese traditional recognition on education still influence the society, and computer technology have developed enough to meet all different demands of Chinese local education. For the competitive environment of the industry, it's growing up towards maturity period, there are some entry barriers, almost without exit barriers. For the internal competitive structure, there is only weak competition among existing competitors, external threats is light as well as substitutions and suppliers. On the contrary, buyers have great power of purchasing and bargaining. For analysis of internal environment, only a few enterprises have perfect strategic management and strong marketing ability. General product development is keeping at low level, and most enterprises suffer from fund and human resource pressure.The conclusion is that leading enterprises should adopt relative diversification strategy, seeking for new profit increasing points while decentralizing operative risk. For those smaller enterprises, the differentiation centralization strategy should be proper to consolidate their competitive advantages in each specified market.