Research On ASD Company's Development Strategy

With the rapid development of Chinese economy, Chemical industry has developed very quickly. Especially the development of nitrogenous fertilizers has guaranteed the safety supply and rapid development of foodstuff. But, on the other hand, the progress of traditional petroleum chemical has caused severe problems and crises, such as fast reduction of energy resources, environmental pollutions, and ecological damages and etc. Because of the over-production of nitrogenous fertilizers and the quick increase price of coal, petroleum and natural gas, the nitrogenous industry has met low benefits during the past two years. "Twelve-five-year-plan" of National Economical Development Layout has defined the development direction—"Adjusting the industry structure, and changing developing method" for the petroleum and chemical industry, and it also is the main task of "Twelve-year-plan" for nitrogenous industry.In order to survive and develop healthily, the nitrogenous companies should find development strategies and measures to face the situations of over-production, low profit, and to follow the current times'development. ASD Corp. one of the small and medium nitrogenous enterprises, has to face this dilemma, at the same time, the company encounters the opportunity which the technology of their formic acid product is advanced, and the market future is very wide. Under these circumstances, it's high time for the company to find their development direction and development strategy.The paper has studied the development strategy of ASD Corp. under the background of current development situation. During the study, the author has recalled the Enterprise Strategy and the theories of the Strategy Management, used the analytical tools of PEST, SWOT Analysis, the Five-force Model and Grand Strategy Matrix to conclude the strength, weakness, the opportunities, and threats which the company would encounter on the basis of the analysis of exterior environment and interior conditions. Following the above mentioned analysis, the author created the combined development strategies of intensive strategy and related diversification strategy which the company should adopt. The company should adopt such a way—Developing fertilizers and chemicals together, and using profits from chemicals to compensate for the development for fertilizers, develop the related diversification for the fine chemicals. The company should raise the market ratio of formic acid through the market development strategy and the market penetration strategy, extend the product chains through products development strategy. At the same time, in order to guarantee the execution of the development strategy, the author proposes the relative measures which the company should improve governance structure, to focus on integral marketing, to intensify financial management, to strengthen technology innovation, to optimize the structure of talented people, to reinforce enterprise culture and etc.The author has tried to develop more complete, more constructive development strategy on the grounds of attitudes of reference, absorption, and innovation. It is meaningful for the healthy and sustainable development for the ASD Corp. Also, it is helpful for the small and medium nitrogenous companies at present.