The Study Of WJ Company’s Development Strategy

The WJ Company is a highly representative enterprise of process instrument industry in China which was established by family business. And then WJ was transformed to modern enterprise system, which was successfully landing to GEM (growth enterprises market board). But now it is facing lots of problems like:poor sales, Net Income Ratio and Net Assets Income Ratio are sharply declining, etc. The second venture of WJ is experiencing unprecedented troubles. The purpose of this paper is to find out a suitable development strategy to WJ, which to adapt the changes of internal and external better and the company to obtain sustainable development.The thesis was summed up into four parts. The first one is an analysis of the WJ Company’s internal environment, which the strengths and the weaknesses were concluded by IFE matrix analysis. The second part is an analysis of the WJ Company’s external environment, which was summed up the opportunities and the threats by EFE matrix analysis. And then we found out WJ is facing great opportunity. Based on part one and part two’s information, we are using SWOT, Grand strategy matrix and QSPM model to evaluate a clear map of WJ’s competitive strategy. In the final part, we are discussing how to implement by supporting from organization, human resource, R&D, M&A, joint venture and social responsibility.By through the study of WJ’s strategy and according to current circumstance, the writer suggests that the WJ company should ran concentric diversification strategy.This is a strong operational result to WJ company. The writer is going to provide a reference to the companies which have similar problem through this study.