Research On The Development Strategy For Sound Environmental Resources Co. Ltd

With the urbanization, urban environmental pollution is getting worse. Faced with increasingly serious environmental problems, the state is increasingly concerned about environmental protection. With the national policy support and encouragement,environmental protection industry is gradually becoming a key industry that promotes national industrial economic. The development of environmental protection companies directly affects the growth rate of environmental protection industry.This paper analyzes the development environment of Sound Environmental Resources Co.Ltd. with the application of PEST Analysis and SWOT Analysis, according to the competition advantage theory and core capability theory.The PEST analysis showes that the state has promulgated a series of laws and policies to strengthen environmental protection and pays more attention to the ecological balance on economy, society and culture. Fierce competition are within the industry and lack of alternatives results in less potential entrants threat. Moreover, the company has the core techniques, strong profitability and strong financing capability.The results of SWOT analysis are showed below. First, the company’s advantage is that it has core expertise in many industries and a very strong marketing capability. It also has its own brands. Second, the shortage of the company is that its accounts receivable recovery is not strong and Financing methods are single. Third, the high-rapid development of sewage treatment in the environmental protection industry provides the company with favourable circumstances and garbage incineration power generation has become a new approach, making the investment in the field of solid waste enter the golden stage. Atmospheric environmental control will have a stable market in the future. Fourth, the challenge is that there has been a trend of price growth in the materials of environmental protection products, which results in rising cost of production and human resources cost year by year. The results of BCG Matrix analysis proves that the company should choose differentiation strategy, integration strategy, diversification strategy and intensive strategy. In order to better implement these strategies, this paper proposes some measures in personnel security,organization guarantee and institutional improvement. The company is suggested to strengthen the senior management team construction, to improve and integrate the organization, to establisht new and efficient orgnization, to improve the managementsystem and implement the construction and implementation of corporate culture and strategic risk control.Based on the researches of Sound Environmental Resources Co. Ltd, the paper formulates practical strategies for the company’s development. In addition, the paper has reference meaning to other enviromental protection companies in strengthing and improving the market competitiveness.