A Research On Business Strategy For The Development Of CB Group’s Appliance Chain Indusry

After more than ten years’ extraordinary development, the current home applianceretail industry is ushering a totally new period of transformation and upgrading.Nowadays,this industry is undergoing a fierce competition pattern that demonstrates a nationwidemonopoly, a region-wide trend of survival of the fittest, a strong rise of the electricitysupplier channel and an infiltration of cross-border.As an important player in this diversified competition, the regional chain industry is inthe situation of surviving the fittest, defending itself solid and awaiting opportunities todevelop itself as a whole. Being an important representative of regional home applianceschain enterprise in China, CB Group’s sales volume ranked sixth all over China in2012.But, what CB Group undergoes is an increasingly intense competition, a morecomplex development environment,a single model of development and a weak power forsustainable growth.In this way, how to formulate a scientific strategy to maintain itsdevelopment is a key issue that must be addressed by CB Group.This paper has methodologically adopted PEST,SWOT and Five forces modelanalysis,with the integration of home appliance chain management and the strategymanagement theory.Besides,a development strategy to compete against Gome and Suninghas been put forward and some strategic measures have been worked out after a deepanalysis of internal and external development environment and market competition CBGroup faces.These measures include:firstly, the full implementation of intensive operationsshould be stressed to improve the quality of the company’s operations and economicscale;secondly,the advantages interacted by department stores, supermarkets and electricstores should be taken of,which will promise a unique competitiveness in marketing,expanding and diversifying its operations;thirdly, CB Group should upgrade the strategicdefensive chain the internal cores,accelerate the process of penetration into the secondaryand tertiary market and actively expand its overall scale and strategic depth and widthoutside of Chongqing;fourthly,the professional platform and channel construction shouldbe strengthened,thus effectively upgrading the regional competitiveness in the interactivedevelopment of wholesale and retail;fifthly,with the initiations of CB Group’s electricitysupplier strategy,another field of electricity supplier should be created, the means ofcompetition should be diversified,and at the same time the room for further developmentshould be extended. This paper is organized as follows. SectionI gives the background, purpose andsignificance of this study.SectionII presents the relevant theoretical review.The nextsection analyses the external development environment of CB Group.And in the sectionIV, an objective analysis is made on the internal environment of CB Group.In thesectionV,the advantages and disadvantages of CB group have been listed with theappliance of the SWOT method.Then strategies for the future development of CB Groupare proposed in the section VI, including a strategic guideline,an overall strategic target,strategic focus and safeguard measures.The last section concludes the paper.