Research On The Core Competitiveness Identification And Enhancement Of Hengyou Furniture Group Based On Value Chain

With the accelerated pace of global economic integration, the domestic market continues to open up, and with China’s rapid economic development, people’s living standards continue to improve.The foreign furniture brands are very optimistic about China’s domestic consumer spending, taking more efforts to develop China market, focusing on the market. On one hand,furnishing market’s external shocks continue to increase, on the other hand, With the increasing state regulation and control of the real estate industry, the consumer demand of the home market gradually lower than the expansion rate. In this industry background, it is sure that the furniture industry’s high profit period has been or will be the past, and high quality, small profits era has arrived, which will become the main features.If domestic enterprises want to occupy a space in the fierce international competition, they must use limited resources to get the best value of the module,which is named core competition ability. Hengyou furniture group is setted by research, design, production, sales and service in whole, which is a modern enterprises specializing in the production of high-grade solid wood furniture.The products have four categories with eight series.The company has more than200stores established in the more than100large and medium-sized cities at present.These cities are located in more than20provinces, cities, autonomous region. That has formed a perfect and controllable marketing network. However, in the intensified and complicated industry competition, the management state of Hengyou is very serious.The group profit has glided ceaselessly and the market share has reduced yet. So it has vital significance to identify and promote the core competitiveness of Hengyou furniture group at this stage, for changing the constant business downturn and protecting the enterprise from being defeated in the fierce global competition.This paper reasearched on the value chain of Hengyou furniture group with the theory of value chain and core competitiveness theory at home and abroad, which provided a quantitative basis for identifying and promoting the core competitiveness of enterprise. Based on these theories, this paper look the value chain as a starting point, with the analysis method combined of qualitative and quantitative to research Hengyou furniture group’s core competitiveness.The article analyze these activities of the value chain from enterprise economic benefits degree, strategic cooperation-output related degree and customer contribution degree, to determine the advantage of the value chain, to identify the core competitiveness of enterprises; for the core link of the value chain, the strategies as sticking to the major work which is furniture production, enhancing the strategic alliance of technological innovation, developping custom furniture information system for setting up brand are raised to control the key of value chain and to promote the core competitive advantages.