The Research On The Influence Of The "Poison Milk Powder" Incident And Strategy Transition Of Company B

The "poison milk powder" incident occurred in2008, which produced great negative influence and shocked the country. It not only allow people lost faith on the domestic milk completely, blind dependence on foreign milk produced, but also makes the domestic dairy industry into an unprecedented crisis in the industry. On the one hand, This is the first study of the dairy industry strategic transformation applied in theory; On the another hand, Healthy development of domestic infant formula companies is closely related to national food security and the health of children. Undoubtedly, research on the influence of the "poison milk powder" incident to the domestic intant formula companies has great practical valuea and theoretical significance. Company B is one of the well-known brands of milk enterprises, the "poison milk powder" incident for the purposes of Company B is a "danger’’ and "opportunity" coexistence. Face to the stubbornly high of foreign brands, as well as other brands of strong domestic pursuit, Company B will have to face a more competitive environment and a huge strategic risk, therefore, B Company’s strategic transformation imperative.In this paper, we use literature review and case study. Based on the literature reviews of "poison milk powder" and the strategic transformation, under the background of the famous "poison milk powder" incident, one of the industry leaders-Company B, is choosed as a case study. Firstly, This paper is analysis of the problems in China’s dairy industry through the’ poison milk powder " incident, and we use Porter’s Five Forces Model in this paper to systematic analysis of the impact of into five areas for infant formula industry like suppliers, buyers, substitutes, competition, barriers. Secondly, This paper further analysis of the effects of Company B in operating environment, operating results, market share, brand image by the " poison milk powder " incident. And depth analyzed strategy transition of Company B in four aspects:product strategy, brand strategy, business strategy and structure follows strategy. At last, this paper suggested that if the domestic infant formula enterprises want to restore consumer confidence in the domestic brand, they should take the initiative to adjust the internal environment to adapt to changes in the external environment, enhance their overall competitive strength, and recommended improvement in integration of industrial chain, enhance product quality, strengthen crisis management, speed up transformation and upgrading, and enhance social responsibility and improve the regulatory system.