Research On Development Strategy Of Xiangshun Garment Company

Garment industry has been one of China’s traditional pillar industries, plays an important role in the development of the national economy. Especially, in the last thirty years, depended on the comparative advantages of China’s reform bonuses, labor, land and other factors, garment industry has achieved rapid development. However, with the economic development, the rise in domestic production costs, so the original extensive pattern of economic development is unsustainable. China’s garment manufacturing labor-intensive production methods urgently need to find a new development path. Due to the recent post-financial crisis, the country’s GDP growth being down-regulated etc., small and medium-sized garment enterprises’ survival and development are face with many new challenges.Xiangshun garment company is one of the small and medium domestic private enterprises, which engaged in garment design, manufacture and sale. Relies on rich experience of the leadership team, good product quality, stable customer resources, the company has a certain competitive advantage. However, this company’s development gradually entered into the bottleneck period because the company has always been a lack of systematic strategic planning, foreign trade business declined, production capacity dropped, out-dated marketing mode etc. In the new environment, how to combine the company’s actual situation to develop a suitable strategy for Xiangshun garment company has great practical significance. Meanwhile, Xiangshun garment company as the research object, also can provide a reference for other small and medium garment enterprises.In this article, based on the theories of strategic management, from the overall situation of the internal and external environment which Xiangshun garment company located, used the PEST analysis, five forces model, SWOT matrix and other analysis tools. Through the analysis of a comprehensive evaluation of the macro background, industry competition, the textile & garment industry conditions of Zhejiang Province, and internal environment of the company’s own, to identify the external opportunities and threats, internal strengths and weaknesses, which are involved in the business development processes. Currently, the company’s external threats are slightly larger than the external opportunities, and internal strengths are slightly larger than the internal weaknesses. Based on the quantitative strategic planning matrix to make the prioritization of four SWOT alternative options, combine the Xiangshun garment company’s actual situation, determine the overall development strategy of the company is stable strategy, and puts forward the focus competitive strategy as the core of strategic planning. Finally, from the organizational system, brand construction, technology, marketing, corporate culture etc, give the related implementation guarantees to the enterprise strategy.