Yunnan Spring Eagle Template’s Development Strategy

Yunnan Spring Eagle Template Company is a state-owned enterprise in the steel template industry. Steel template industry is a labor-intensive mechanical processing industry and highly correlated with the construction industry, therefore, when the construction industry grows, it grows. With the increasingly rapid urbanization, railway, highway, water conservancy and hydropower construction projects started, steel template industry are entering a new era of rapid development, full of opportunities and challenges. Composed of Small and medium-sized enterprises, steel template industry is a highly competitive field. Its success depends largely on factors such as strong technical reserve, quick delivery and perfect service. This thesis attempts to give a deep insight into the way how Yunnan Spring Eagle Template Company stays its competitive advantages and how it develops its core competitiveness. Based on the analysis, the thesis fully confirms that the company cannot survive and develop without the allocation of resources to the key success factors.Introducing the advanced technologies from the United States Simmons (SYMONS), Yunnan Spring Eagle Template Company creatively has produced the 65 series standard combined steel sheets which meet the demand of the Chinese market. Due to its continuous efforts for improvement of technologies, the company successfully thrives. Founded in 2004, Yunnan spring eagle Template Company, after 7 years of development, ranked first in production and sales volume in the Yunnan market depending on the sophisticated technologies, scale, low cost and perfect service system. But in recent years, factors like rising raw materials, labor costs increase and so on has exerted great impact on the fast development of the enterprise, as a result, the bottleneck in the production and business operation emerge. To solve the problem, the author gives a full insight into the enterprise so as to find the successful path of the high speed development. On the basis of SWOT analysis and the value chain analysis, the thesis arrive at the conclusion that the external environment, internal recourses and the enterprise’s capability have undergone significant changes. The past development strategies like the single market, the single product strategy and the single low cost can not adapt to the development of the enterprise. In order to achieve a high growth, the enterprise must entirely rely on the internal advantages, seize the market opportunities, apply the horizontal integration strategy and conduct "product diversification, industry diversification" policy. In addition, through the optimization of the supply chain and reshaping the value chain, the enterprise internal profitability can be enhanced which will further guarantee the implementation of the general strategy of enterprise.