| In recent years, level progresses of the construction machinery industry production had been processing day by day, many of the leading enterprises’ operating revenue and profit growth have a 100% increase. As the change of national macroeconomic regulation and control, engineering machinery development of new turning point has been evident, industry growth is very difficult to reproduce, or will present low growth in the future. In addition, with the improving of the huge expansion of the scale and reputation, enterprises are facing cross-industry structure and business structure, the complexity of the international market, in the foreseeable three to five years, this situation will also increase. According to the dramatic changes of the market, most of the engineering machinery industry enterprises face a series of problems and challenges:the more enterprise service function, heavy burden, the lack of money and talent, etc. Advanced foreign enterprises have a foothold in China, the advantage of domestic product price gradually decreased; Rapid development of private enterprises, intense competition, profit space to reduce; Emissions, noise and safety to relevant standards and certification, all of these put forward the higher requirements for the export product competition. Based on the market Successfully, enterprises must recognize their own advantages and disadvantages, as well as comprehensive analyzing the opportunities and threats from the external environment, so the establishment of development strategy of good or bad has a decisive role to the development of enterprises.In this paper, studying the application of the traditional SWOT analysis method in the enterprise strategy formulation and analyzing the existing problems and the insufficiency. On this basis, the author attempts to further improve and optimize the SWOT analysis model and puts forward the SWOT quantitative model based on AHP. The model improved the traditional SWOT model, the method also give full play to the advantages of the AHP, effectively improve the shortcomings and the insufficiency of traditional formulation method. Strive for breakthroughs in theory and the method provide support and reference for the enterprise.This article is divided into six chapters. The first chapter is introduction, putting forward the research background, significance and methods. The second chapter is the introduction to the theory of strategic management. For this part, we study the relevant strategic management theory. The third chapter is the traditional SWOT analysis method in the enterprise strategy formulation and analyzing the existing problems and the insufficiency. The forth chapter is about building the SWOT quantitative model based on AHP. The sixth chapter is about summary and outlook. |