The Research On The Strategy Of Product Line Extension In Jilin Yuan He Nursery Paper Products Co.Ltd

Jilin yuanhe corporation is a company whose main business is producing andprocessing nursery paper. The corporation includes Jilin Yuanhe nursery paperproducts limited company, Gongzhuling ivestment company, gongzhuling southmountain grain store, Inner Mongolia Hohhot yuanhe beet fertilizer processingcompany and other subsidiaries. Currently, the main profit of the corporation is fromJilin Yuanhe nursery paper products limited company. This company is the largestnursery paper producing and processing one in Asia. Its products, beet nursery paper,is widely used in beet planting in Heilongjiang, Liaoning, Inner Mongolia, Shanxi,Xinjiang, Shandong, Hebei and so on. Due to the good product quality and marketreputation for years, it makes itself a leading position in nursery paper producing inour country.Faced with an increasingly competitive market, ilin Yuanhe nursery paper productslimited company seems lack of energy because of its simple products. Now thedomestic policy does not support the paper industry, so these problem like insufficientraw material and high labor costs all limit the company development.This paper is based on corporate strategy operation management and the humanresource management, made a large collection, inspection, combing nursery paperindustry data and information, subdivided and induced the nursery paper productswhich involved in the related field, and analyzed the historical background of JilinYuanhe nursery paper products limited company. Meanwhile, the paper appliedPoter’s five forces model, the internal factor evaluation matrix IFE to analyze theadvantages and disadvantages of the company. According to the analysis results and the comparison of large field nursery paper products, the paper will suggest that thecompany develop “cotton nursery spool” and “beet nursery spool plus cotton nurseryspool” dual portfolio solution. Then it will make improvements of company resources,equipment, production and make up the internal and external weakness’ of thecompany with dual product strategy, so that it can better foothold in the nursery paperindustry and continue leading the domestic nursery paper market.Considering that the existing equipment can not product “cotton nursery spool”and “beet nursery spool” together, they will adjust the internal equipment structureand the layout. After adjustment, the idle machine will produce the two kinds ofproducts at the same time.The paper will also put forward some new ideas and solutions on how topurchase new product’s raw material, organize the production staff, inspect theproducing processes and the finished products, and popularize their products, in orderto ensure that the new product “cotton nursery spool” can produce and salesuccessfully.Through this study, Jilin yuanhe nursery paper product limited company willclearly aware of the possible problems in current production and operation, and howto deal with them. The adjustment of production will lead the company to theindependent research road. It can also enhance the product competitiveness in themarket, and help it to solve the problem that the company can not have a fast growingin sales again in these years, find their own blue dot in the nursery paper market,make the company extent their period of growth, and contribute more profit to Jilinyuanhe corporation.