The Research On Competitive Strategy For H Group Feed Business

H Group which has engaged in livestock and poultry breeding, feed production, food processing and sales, and so on, was founded in March,2009, it has been one of the most growth potential enterprise in Shandong Province. At present it has35subsidiaries, in which there are15Feed mills. Production and sales of H Group’s feed business in2011reached560,000tons, an increase of115%, ranking the province’s top10list.In the post-financial crisis era, the industry of feed aquaculture of China has been adjusted severely in its industry structure, and the large-scale of this industry has been accelerated rapidly. H Group has to face many challenges in this environment that the intensified competition of industry homogenization, the increased cost-pressure and strengthen the leading role of large enterprises. It urgently needs to analysis, design, and demonstrate competitive strategy for its own development. This paper analyses the external environment and internal station of H Group’s feed business, and discussed the competitive strategy and implementation plan combined with the character of this business.The opportunities of H Feed have mainly been sustained and rapid development in the national economy, domestic demand’s steady growth, the support of the national industrial policy, rapid development of livestock production, faster growth of the rigid demand, the huge space of the market integration, and so on. The main threat is the increasing contradiction between supply and demand of raw materials, the rising cost of overall production, land and environmental factors, brutal competition in the industry, the relative shortage of outstanding talent and so on. The main advantage is that a clear business development strategy, deeply-rooted corporate culture, advanced production and testing equipment, stable core of an excellent team, listed companies’support, etc. The disadvantage is that the disadvantage is that the main brand building efforts is still weak, the overall yield is low, core competitiveness is not obvious, the product mix to be adjusted etc.On the basis of the above analysis and comprehensive evaluation to determine the competitive strategy of the H Group feed business at this stage is the differentiation competitive strategy based on cost control. Specific to the operational level is to achieve product differentiation through the implementation of brand strategy, improve product quality and optimize the product mix; through the improvement of the service system and build differentiated advantage to achieve service differentiation; through Investment layout of large-scale, the lowest price of raw materials, real-time of the formula’s adjustment and the closure of the industrial chain’s extension to achieve low-cost; to improve the marketing measure by exploiting and controlling channel, flexible promotion.Matching support safeguards are developed to ensure the effective operation of the strategy. First, to strengthen research and innovation capability, enhance the core competitiveness; second is to strengthen human resources management, to construct a reasonable professional personnel structure; the third is to refine and deeply plow the corporate culture to ensure that the culture’s publicizing and implementation; the forth is the sound management of information systems, the establishment of strategic lead agency and the construction of information management platform.This thesis, not only helps to build the core competitiveness of the H Group feed business, to play a certain role in promoting the strategic development of the H Group at this stage, but also has a certain reference to the implementation of the strategy in the similar forage breeding companies.