The Study On NetDragon Websoft Inc' Competition Strategy

After development for eleven years, Chinese online game industry has formed a relatively complete industrial chain and relatively mature industry environment. It is worth paying great attention to the online game's high ration market scale increasing and the fast development. However, our country's online game industry has the high profit and high growth as well as the high risk. And with Chinese online game industry going into the mature, the market concentration is increasing, the industry competition is getting fiercer, and the enterprise's survival and development are facing the worse environment.In the condition that there are a large number of online game enterprises in China, and the industry competition is getting fiercer and fiercer day by day, NetDragon Websoft Inc would have to obtain a certain competitive advantage in order to succeed in the fierce competition. How to carry on a strategic plan effectively, leading to developing continually, obtaining the greater profit and the higher market share in the intense market competition, is the important problem which the NetDragon Websoft Inc faces at present.This thesis firstly introduces the concepts of online game and the development condition of the online game industry in China.Second, carries on the analysis to the NetDragon Websoft Inc's external environment from the macroscopic and the competition environment both aspects, in order to discover the opportunity and threat what the NetDragon Websoft Inc faces.It's opportunities are national and local economic and policy support,the expansion of online game market scale, users scale and spending.and the extension of cooperation. It's threats are fiercer competition of the domestic online game market,the diversification of user needs,the threat of foreign online games, the threat of illegal procedure,and public awareness of the dangers of online game.Then introduces the general situation of NetDragon Websoft Inc, seeks for the strength and weakness in the NetDragon Websoft Inc interior.It's strengths are independent research and development,integration of industrial chain,people-oriented enterprise management mode,ample funds,advantage of sales channels,and platform for building and product layout.It's weaknesses are serious brain drain,lack of marketing and advertising,and the relative single product line.on this basis, uses the SWOT matrix and strategic choices map to determine that NetDragon Websoft Inc's overall development strategyis growth strategy. Finally, using Porter's competition strategy theory and the previous results to determine that NetDragon Websoft Inc should take the differentiation strategy, and put forward the specific proposal to its differentiation strategy:strengthening brand building,creating differentiated products and services,differentiated marketing,strengthening human resources.And it should avoid the risk in differentiation strategy implementation process.This paper proceeds with the basic theory of and methods of competitive strategy management unifies the actual situation of the NetDragon Websoft Inc closely to launch the research, makes every effort to provide a reference for the long-term stability development of the NetDragon Websoft Inc.