The Study Of China’s Grain Enterprises Development Strategy From The Perspective Of Industry Chain

The enterprises of grain have been the pillar industry of national economy.Due to the specificity of commodity, the development of grain enterprises not onlyassociates with the growth of the entire industry and even the advancement of theagriculture, but also links with the improvement of living qualities and the stabilityand safety of our country. It plays an important role in the development of economyand society in China.Since the reform and opening, with the economy globalizationand government enhancement, the grain enterprises grow rapidly. Some large-scaleenterprises like COFCO (Zhongliang) and China Grain Reserves (Zhongchuliang)emerged and produce great economic profits. However, we cannot ignore that mostof grain enterprises develop with small scale, low tech and management level, andincomplete industry chain. These small ones are also lacking in deep processing,brand building and competitive strength.As we known, the foreign grain enterprisesrapidly occupy and expand in China’s market with the advantage of large scale,starting early, high technology and full-grown industry chain. If the domestic grainenterprises did not transform their development strategies in time, they would notsurvive against the severe competition at home and from abroad, and finallydisappear, all the industries would be monopolized by the foreignenterprises.Therefore, face to the complicated situation, our domestic grainenterprise should transform the development strategies, establish the full-grownindustry chain, realize the combination of the valuable resources, and grow to thelarge-scale enterprises. In this way, our domestic grain enterprises wouldsuccessfully promote this comprehensive competitive strength, seize industrylifeline and keep the grain safe.To investigate how to establish the industry chain and promote the competitivestrength in China’s grain enterprises, this paper is demonstrated by theoreticalanalysis, empirical analysis and mathematical statistics, and so on.Firstly, we summarize the previous researches about the industry chain anddevelopment strategies of the grain enterprises, and elaborate the connotation,characteristics, and significance of grain industry chain. Furthermore, we analyzethe current situation and characteristics in domestic grain enterprises. Take COFCO(Zhongliang) as an instance, our paper shows that the reason why completedindustry chain was selected as the development mode and how the elements of thischain develop respectively. Finally, we raise the suggestions of industryestablishment and development strategies from the different two views, thelarge-scale enterprises and the small-scale enterprises.