The Research Of XXX Industry Hypermarket For Strategy Development

The newly-adopted Twelfth Five-year Programme for Economic and Social Development has put forward new requirements and visions on the future development of the Chinese economy. How should the Chinese enterprises establish a development strategy in line with the new national conditions and according to their own development needs?XXX is a trade company on industrial products. The company sells limited variety of products and hence is reliant on the suppliers. It is related to only a few sectors due to the product constraints. It has little space in negotiating prices with the enterprises at the upper and lower end of the supply chain.In light of the above-mentioned problems, through analyzing the industrial enterprise needs, the paper first proposes "MRO Industrial Hypermarket" as the strategic direction of the company's development. Then the paper clarifies the definition of industrial MRO products, MRO industrial supermarket and its operation mode. Through comparing "MRO industrial Hypermarket" business model with the traditional marketing methods, the paper examines the strategic importance of the MRO model in helping the company to overcome the existing problems.Secondly, the paper discusses the feasibility of the development strategy from the following three aspects. The first is to introduce the overseas successful experiences through several case studies. The second is to use chart and data to analyze domestic market's demand. The third is to analyze the strength of the company against the other major competitors through analyzing financial ratios and using SWOT model. The above-mentioned three aspects have shown that the company has a huge potential in the domestic market and has formed its competitive advantage. Thus the strategy has been proved feasible.Finally the paper uses quantitative method to analyze the feasibility of strategy. Free cash flow model is used to evaluate the company that is based on the original development model and the company that adopts the Industry Hypermarket model. The final conclusion is that enterprise should adopt the model of "Industrial Hypermarket" as its strategic development direction and endeavor to implement it.