Research On The Development Strategy Of A - Abalone Continental Project Company

It is one of the most important tasks for every company to study its development strategy. Taiwan Shansi International Marketing Co., Ltd. and Honking Aye Abalone Princess Co., Ltd. signed a general agent contract that permits the former to market Aye Abalone as well as the relevant products in Greater China Region in2008. Therefore it is necessary and urgent for the project company to study its development strategy in Greater China Region. This paper applies theory and methodologies in the field of strategy management to study the development strategy of Aye Abalone Project Company, so as to provide beneficial reference for the project company to start, develop and operate in Greater China Region.This paper first adopts such research methodologies as PEST analysis, Porter’s five forces analysis and SWOT analysis to study both the internal and external environment faced with the project company in detail, aiming to figure out the opportunities and threats confronted with the project company, as well as the strengths and weaknesses of the project company.The external environment analysis reveals that with the uprising of the mainland retail market, the market will offer huge business opportunities in the future, indicating expanse development prospect for the project company. While the main threat confronting the project company comes from the suppliers, meanwhile those from new entrants, existing competitors, customers, and substitutes are not that serious. Thus, in general, the project company is faced more opportunities than threats.The internal environment analysis indicates that the project company should make full use of its strengths so as to grasp the opportunities to create value, meanwhile improve its weaknesses so as to avoid threats. Specifically, the project company should continue to develop high-quality and fair-price products featured by diversification and systematization, enter the market swiftly with innovative and rich product lines, improve the brand influence, enlarge the market share, and provide perfect after-sales service to meet the challenges. The project company should sign long-term supply agreement with large-size aquaculture enterprises, in order to stabilize price and supply, establish information staff in the place of origin, in order to report the business condition, and potential anomalous events such as natural disaster and pollution episode in the place of origin in the first time. The project company should also develop distributors at various levels so as to enlarge both the quality and quantity of the transaction quickly. Secondly, based on the above internal and external environment study, this paper maps out the development objective, as well as the feasible development strategy along such dimensions as the operating goal, business model, core competitive strategy, resource allocation, marketing strategy, and risk control. In detail, the project company should position itself as providing affordable luxury products to the consumers, establish "Good Brand, High Grade " brand image, and provide the most favorable products with the most specialized operating team, along with the most complete and true product information. The project company should adopt differentiation and innovative competitive strategies, supplemented with its unique business model, make full use of the existing strengths and the resources, objectively acknowledge its weaknesses in such aspects as cost and fund, effectively and quickly exploit the market, so as to realize steady development in the fierce competition. The project company should conduct its marketing activities on the mainland market from such dimensions as product, price, place and promotion. The project company should also take a series of risk control measures in view of raw material under-supply and price volatility.This paper explores to apply the strategy management theory to company development based on its internal and external environment, therefore it not only offers great practical value to the development of Aye Abalone Project Company, but also acts as guidance for other Taiwan-funded companies committed to enter the Great China market.