The Strategy Research Of Backwardness Enterprise Survival And Growth

For latecomer firms, challenges exist everywhere. Externally, International market is characterized by accelerating global economic integration, global financial crisis, and frequent technological innovation. At the same time, internally, the competition in every industry is getting more and more intense. Some companies have to be closed. The data from2011Beijing Statistical Yearbook showed that there were as many as42,628legal business units in Beijing in2010. Among them,5,438closed and127filed for bankruptcy. In such a diverse competition environment, even those that used to be large powerful multinational enterprises, such as General Motors, Nokia, Kodak also closed down. Though some were collapsed, others survived in this competition by designing their strategic layouts in advance to build competitive advantage. In this way, they succeeded in achieving high-speed and catch-up development.So, how did these latecomer firms successfully survive the fierce and unrest environment? Some of them are even more outstanding to catch up foregoers. How did they achieve it? To demonstrate the correctness of the contention, the case study is presented in this paper.The case is about TAL Education Group (NYSE: XRS) which is very famous in Beijing non-academic education training industry. In2003, TAL accessed to this sector which is largely in the control of New Oriental Education and Technology Group and some other giants. Only7years after that, TAL, once a small after-school tutoring service provider, was put on NYSE listing in2010. People feel surprised and can not help asking:"What makes TAL achieve this goal from the nearly monopolized market and what factors make TAL become a popular star chased by the capitalists worldwide?" This paper will answer these questions and study the phenomenon. The strategies of TAL implemented in different stages shall be carefully researched and explored to provide theoretical guidance for the latecomer firms in our country.This paper at first summarized the ideas about the latecomer firms and defined their competitive advantages and disadvantages. Then the paper shows that only advantages and disadvantages are known, can the strategic analysis, formulation and implementation be kept on the right track. In the end, the paper tries to reveal the rules between development and strategies through the case study.To survive the competition and catch up the foregoers, strategy management is very critical in different development stages. This paper holds the belief that the late-development advantage theory, competitive advantage theory, the enterprise growth theory and enterprise strategic management theoiy play a very important role. If the enterprise strategies in different stages of development are combined, the results will fatefully affect the enterprise’s competitive advantage, and even its life span.Finally, based on several core strategies studying, the paper drew the conclusion that innovation or new methods should be adopted to help thelatecomer firms safely go through the high-risk period. Then implementing strategies of sustainable development are needed to build the core competitive power according to different stages of development.