The Analysis On Development Strategy For RL Company

In recent years, the global market remains strong momentum and demand for massage appliance product, with the improvement of domestic manufacturing level and the current rapid development of the domestic massage appliance industry, China has become the world’s manufacturing center of massage appliance. RL is a newly shortly established private enterprise, specialized in the production and R & D and sales of health massage equipment. The enterprise has a rapid development momentum, but there is problems for the existence of poor external sales channel management issues, sales order unstable, long company production orders delivery cycle, the higher cost of production and other internal management issues, which poses a severe challenge to the survival and development of the enterprise. Under the new situation, how RL should catch the opportunity to accelerate its development, has become the company necessary solve the issue.The paper is based on the relevant literature illustration to research the enterprise strategic management theory and to analyze the massage health care equipment industry’s current situation and its development trend; through the external environment PEST analysis of massage health care equipment industry, the study found the overall external environment conducive to the development of the industry; through the competition conducted by Porter’s five forces model analysis, the study found the industry’s existing competition between fierce rivals is at moderate degree, and the structural states of massage health care equipment industry are a more attractive competitive structure in the industry; through the analysis of the competitors, the study found its advantage lies in large-scale, low-cost and R & D strength, and the disadvantage is that over-reliance on overseas markets and key customer sales accounted for too much; by RL’s internal analysis, the study found the company’s disadvantage is the high cost, limited financial resources, unstable distribution channels, and the advantage is to have a good team and a certain brand influence; on the basis of these studies by SOWT matching model, after a study, it found the suitable strategy for RL corporate development is the reverse strategy, the company’s transition from a manufacturing to a service-oriented enterprises, by providing massage health care equipment and experiential services, to meet the growing market demand for health services. It us to ensure the effective implementation of the strategy, development and customer service capabilities through efforts in four areas of low-cost competitiveness, technical and financial strength, management team building and other building enterprise core competitiveness. By the research of RL corporate development strategy on the reform and development of the company’s transformation and upgrading, this has important practical significance to RL.