Zhengzhou Tobacco Company's Business Strategy

Along with deepening of China's reform and open, especially after entering WTO, China's economy has rapidly melted into the world economic tide, become an inseparable part of global economy. This is a great opportunity to China enterprises, as well as a flinty challenge.China tobacco companies, such as Zhengzhou Tobacco, are traditional state-owned companies which have been protected by special policies for a long time. It will be a fatal crisis if they can not speedily adapt the new competitive environment. So, China tobacco companies need make their cooperation operating strategy and breed their core capabilities in good season to win the new drastic competition in the near future.As an employee of Zhengzhou Tobacco and a MBA student, I have plentiful experiences and industry knowledge to analyze current situation and trends, discuss new strategies, and new capabilities breeding.This paper include: 1) Goal, approach, framework and flowchart of my study; 2) Analysis of current situation, trends and industry environment; 3) Future development model, value tropism, Key success factors and advantages/disadvantages. 4) Operating strategies discussion. 5) Suggestion for core capabilities breeding and related factors to keep persistent competitive capabilities.The main achievement of this paper is a practical model which combined modern management theory, experiences of international tobacco enterprises and actual business environment of Chian tobacco companies. This model will primely contribute to China tobacco companies, especially to those in middle and west area of China, in the transformation process from traditional government operating to modern marketing leading enterprise.