XC Shanghai Science And Technology Co., LTD., Growth Strategy Research

In order to construct a harmonious and tranquil society, the Chinese government is paying ever more attention to social public security. That is a principal driving of rapidly growing demand for a broad range of security products. Modern security systems incorporate a large measure of computer and electronic technology. Thus, we see a merging between technology products and systems specifically designed for security. Based on both technology trends and growing demand for security systems, a number of companies are attempting to enter the security sector. A significant number of new entrants are well financed by some of the world’s top500companies. Naturally, the emerging competition poses intense competitive challenges to medium and small sized enterprises.This paper applies enterprise strategy management theory to formulate a growth strategy for a particular security system company, Shanghai XC science and technology Co., Ltd (hereafter referred to as XC). The model applied to XC should be readily adaptable to small and medium sized Chinese security companies. It provides a basis for good practices and a path to growth, by identifying completive advantages, and then formulating a growth strategy based on the three aspects--structure, control and culture.Analysis applies; Porter’s5competitive forces model, value chain, VRIO frameworks to analyze the XC’s internal and external environment. Techniques used include use of a SOWT matrix to match the strategy, work out the suitable and optional strategies, and then using quantitative strategic plan to evaluate them and screen out alternatives.