Research On Growth Strategy Of Tsoft Company Towards E-Government

Tsoft is a high-tech company focusing on software development, project implementation and technical services in E-government affairs. As a typical mini-size enterprise, Tsoft is faced with the forthcoming challenges on the transformation from natrual growth to strategic growth. In this thesis, we have performed systematic study on Tsoft’s venture history and external environments, discussed the resources and capacities that supporting Tsoft’s growth, formulated a suitable growth strategy for Tsoft and analyzed the required supporting system for the implementation of the proposed strategy. These studies are based on enterprise life cycle theory, strategic management theory, strategic analysis models and so on, and the study methods involve literature research, model analysis and case analysis. The main contents of this thesis are listed as following:With respect to the external factors of enterprise life cycle theory, PEST model has been used to analyze the macro-environments for Tsoft’s survival and growth. We have discussed the competitive environment of E-government industry faced by Tsoft by using Michael Porter’s five forces model, and studied Tsoft’s recent external opportunities and threats by using the External Factor Evaluation Matrix (EFE Matrix). On the other hand, with respect to the internal factors of enterprise life cycle theory, we have summarized Tsoft’s strategic resources and capabilities, analyzed Tsoft’s core competencies, deficiencies and the necessity for value chain collaboration by using the value chain model, and discussed Tsoft’s internal strengths and weaknesses by using the Internal Factor Evaluation Matrix (IFE Matrix).We have sumarized the external opportunities and threats to Tsoft, as well as the corresponding strengths and weaknesses. SWOT analysis method has been further applied to propose several alternative growth strategies for Tsoft. We have also invited some experts to consult the proposed growth strategy and formulate the niche strategy as the core of Tsoft’s growth strategy, which assorts with overall cost leadership, differentiation and value chain collaboration strategies for Tsoft’s different growth stages. The proposed strategy is supported by increasing talents reserve, adding innovation funding and emphasizing technology innoation. Furthermore, the implementation of Tsoft’s growth strategy has been formulated. The related assurance issues, such as human resources management, organization, marketing, technology and application innovation, insider system management and institution building, have bee further discussed. At last, we have evaluated the possible risks during the strategy implementation, which could involve market misfit, talents losing, project management fault and value chain miscollaboration. The corresponding precautionary measures have also been presented.The proposed growth strategy model for Tsoft is based on niche strategy and originated form enterprise life cycle theory. The formulation of the strategy is closely related with Tsoft’s strategic posture, and the proposed strategy is unique because it is composed of one core strategy and several supporting aspects. The different components of the proposed strategy will be dynamically adjusted to suit Tsoft’s external environments in the future5years, to produce the best combination of various resources and capacities of Tsoft and to possess highly suitability, feasibility and acceptability.The growth strategy formulated in this thesis could not only maintain Tsoft’s recent strategic posture, realize the transition from natural growth to strategic growth and finally ensure Tsoft’s sustainable growth, but also be of positive value to other mini-size software enterprises in the E-government industry.